Analytics, Business in Europe, EU – Baltic States, Financial Services, Markets and Companies

Nobody expected that revenues for the broader business intelligence market would equal that of PlayStation and Nintendo: within a more ‘traditional’ definition of the market research industry, the global size reached US$ 40.3 billion in 2013, representing year-on-year growth of 2.8% and 0.7% after inflation is factored in, the ESOMAR Global Market Research Report 2014 reveals.

About the report

Since 1948 ESOMAR’s aim has been to promote the value of market and opinion research in effective decision-making. ESOMAR facilitates an on-going dialogue with its 4,900 members, in over 130 countries, through the promotion of a comprehensive program of industry specific and thematic conferences, publications and best practice guidelines. ESOMAR also provides ethical guidance and actively promotes self-regulation in partnership with a number of associations across the globe.

In its 26^th edition, ESOMAR’s annual Industry Study includes: 

= Turnover and growth data at global, regional and national levels;

= Detailed country-level breakdowns of research spend by research method, design, client type and project type;

= A review of the Top 25 companies, and

= Expert interviews on various topics, such as Latin America, Africa and the next big opportunities.

ESOMAR Director-Genaral’s opinion

Each issue of the report, which presents the only global analysis of market research spend, has traditionally marked a number of important developments in this profession and this year is no different, said Finn Raben, ESOMAR Director General.

Table: Analysis of market research spending

The figures are the ESOMAR’s estimates; rounded figures presented.

Exchange rate fluctuations eliminated. IMF inflation rates used to determine net growth.

Note: the broader ‘business intelligence’ market is measured in cooperation with Outsell, Inc., a US based market intelligence provider.

Highlights from the report include:

= Asia Pacific is the second of two regions that recorded positive net growth for 2013. China’s growth rate has declined by more than half in the past year, from 11.2% to 4.4%, but the size of the market research industry in China is now quickly catching up with Japan.

= The downward trend in European turnover remains the region’s primary challenge; for the third consecutive year in a row, the value of the sector declined.

= It is largely the EU15 that struggles to overcome the economic pains; France, the Netherlands, Denmark and Luxembourg were the only markets to record net gains in 2014.

= The growth of online research has taken an unanticipated turn; global revenues declined 1%, to 28% in 2013, which can be partly explained by increased price competition. This is substantiated by ESOMAR’s 2014 Global Prices Study, which details that global median prices for the online modalities (i.e. Online U&A Study, Tracker Study & Advertising Test) have all registered overall declines over the last four years, ranging from 2% to 12%.

= The world’s best performing markets in 2013 were Myanmar (+50.0%), Lebanon (+38.4%) and Bangladesh (+28.4%), all posting growth from a small base; the world worst performing markets were Iraq (-45.5%), Cyprus (36.9%) and Portugal (-22.4%).

= Confidence in the health of the market research industry appears to have strengthened; 82% of the countries that provided forecasts expect their local market to grow in 2014, compared to 60% in 2013.

= For the full-year 2014, ESOMAR believes that global industry growth of between 3% and 4% (before inflation) is possible, which is stemming from the optimism that prevails in most of the regions, and the latest signs of economic recovery in some of the world’s largest research markets. 

‘‘A continuing challenge however, is that we still need to do more to raise the value of our profession – to legislators, to users, and most importantly, to our participants and consumers. The importance of research and insight to society, to government and to business simply cannot be stressed enough’’, Finn Raben adds.

Reference: http://www.esomar.org/