Firms will increasingly make efforts to increase their search engine rankings and develop more stable business models.
Los Angeles, California (PRWEB) November 01, 2011
The outlook for the Business Information Resellers industry is largely positive, according to IBISWorld, the nation’s largest publisher of industry research. Demand for business information products is expected to grow along with a strengthening economy and improved product offerings among industry firms. In addition, firms' efforts to increase search engine rankings and develop more stable business models will alleviate some of the downward pressures experienced over the past five years. From 2011 to 2016, industry revenue is forecast to grow to $594.6 million. In 2012 alone, revenue is projected to grow 7.0%. Firms will further adjust to search engine Google's 2011 algorithm change, and improved demand conditions will drive up sales.
The Business Information Resellers industry includes firms that aggregate data, reports and articles from news publications, market and company research specialists and offer this collection to clients. The rapid increase in the use of the internet, related technologies and market intelligence in the workplace allowed the industry to grow exponentially in the late 1990s and early 2000s. Nevertheless, during the five years to 2011, the financial crisis, subsequent recession and lackluster recovery severely diminished growth. Demand conditions improved in 2010 and through 2011, but sustained weaknesses in US and European economies, competitive pressures in the research market and changes to internet search platforms continued to depress growth. Over the five years to 2011, revenue is anticipated to decline at an average annualized rate of 1.3% to $444.8 million, despite growth of 1.6% from 2010 to 2011.
Consolidation has been one of the dominant trends in the Business Information Resellers industry. At its peak, the number of firms reached nearly 100 in 2006, but by 2011, the number has fallen at an average annual rate of 8.7% to 62. While many firms exited the industry because of difficult economic conditions in recent years, merger and acquisition activity has also been rampant. Firms have sought to expand product offerings, reach into new markets and strengthen their relationships with content publishers. Major players Thomson Reuters and Marketresearch.com have increased their respective market shares due to major acquisitions, such as Marketresearch.com's acquisition of Profound in 2007. In early 2011, the potential for consolidation increased, after Google made a change to its search algorithm. The company now ranks websites with original content higher than those with duplicate information. As a result, publishers have sought to limit the number of resellers they work with to reduce the incidence of content duplication in search engine results.
According to IBISWorld analyst, Caitlin Moldvay, over the five years to 2016, demand for business information products is expected to grow along with a strengthening economy and improved product offerings among the industry's firms. “Firms will increasingly make efforts to increase their search engine rankings and develop more stable business models," says Moldvay. “This trend will alleviate some of the downward pressures experienced during the past five years.”
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Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.