MR Revenue Growth Predicted to Slow in Next 12 Months

Market research practitioners expect industry revenues to grow by 4% during 2012, according to the results of the latest RSM 'State of the Industry' survey. The result, from interviews in December 2011, is lower than the 4.3% expected in April 2011 and 5.4% in October 2010.

In wave 11 of the survey - completed by 238 UK based researchers at the end of last year - revenues/spend grew by 2.9% in the previous 12 months, representing a small rise compared with 2.2% in April 2011 but considerably lower than the 6.4% in October 2010.

This rise in actual growth however does not seem to mitigate the lowest expectation of revenue growth for the last three waves of the survey and indicates, say RSM, that industry confidence is falling.

Only 6% of those surveyed expect the economy to improve in the next 12 months, while 60% expect it to get worse (a net of minus 54%). RSM says these are considerably weaker figures than in the previous two waves, when the net ratings were respectively minus 18% and minus 9%.

According to the report, smaller agencies continue to experience and expect a more challenging trading environment, with 47% of organisations with 0-4 employees reporting decreased revenue/budget in the last year, and only 29% expecting increased revenue/budget in the next 12 months.

However, more than a third of those surveyed (35%) are positive about the future of market research, which RSM puts down to a belief in the continued demand for research services, with some researchers considering research to be 'even more beneficial' in challenging economic times.

Full results from the survey will shortly be available on the RSM web site: www.rsm1.com .