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MR Suppliers Hit as Clients Bring Work In-house?
Research suppliers may see declines in 2009 revenue as more clients prepare to take a proportion of their online research in-house, predicts an industry survey conducted earlier in the year.
The survey, conducted online in February among senior research practitioners and co-sponsored by online-oriented companies Cambiar, MRops and Peanut Labs, suggests that the decline in research industry revenues in 2009 may be higher than suppliers are expecting. While clients are anticipating that budgets may be flat to falling, the fact that they intend to do more in-house suggests that there will be less work for suppliers of research.
In 2009, the overall survey respondent base projects a market increase of 1.1%. However, results from clients give a less positive picture: project expenditures on research range from flat (MR functions in marketing companies) through to a decline of 3%+ (other research buyers), to one of 9% (ad agencies). Data collection companies project a decline of just over 2%.
While the recession has its own direct impact on the industry, it also appears to be indirectly accelerating changes that were already under way. Researchers project even stronger movement towards online as a preferred medium of data collection; not just in 'traditional' quantitative interviewing, but also through increased use of online focus groups, instant messaging, social media and online versions of 1:1 interviews and ethnography.
The survey looked at clients' interest in building their own brand-specific social communities and panels, and found that a quarter intend to source sample from social networks, and more than a third intend to build or use their own panels or communities.
Looking at suppliers' investment plans for this year. one in five (20%) companies intend to build their own online communities in 2009, and 30% anticipate building them for their clients' use. However, the survey says this does not mean that communities will supplant panels in the near future.
Finally, the survey showed that online sample and data quality remain at the forefront of industry concerns. Quality sample is the primary factor in the choice of a sample provider, but research companies are now looking for verifiable methods of sample improvement, including elimination of duplicates.
Web sites: www.consultcambiar.com, www.mrops.com and www.peanutlabs.com .
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