online market research and surveys are much less expensive than their traditional counterparts, which has benefited the industry
Los Angeles, California (PRWEB) December 21, 2011
Revenue for the Online Survey Software industry is set to increase as businesses expand marketing and research budgets and new entrants pursue the industry's high profit margins, according to a new report from IBISWorld, the nation’s largest publisher of industry research. The industry will also continue to benefit from its relatively new nature, since it is nowhere near approaching its market saturation point. Many companies and other clients are still transitioning from traditional market research and surveying to internet-based technology, which will continue to drive demand despite economic conditions. For this reason, industry research firm IBISWorld has added a report on the Online Survey Software industry to its growing Business Productivity Software collection.
The Online Survey Software industry is relatively new and offers well-run firms high profit with little labor and capital input. As such, it experienced aggressive growth prior to the recession, which more than offset any slowdowns experienced during the recession. Revenue is estimated to grow at an average annual rate of 9.3% to $2.0 billion in the five years through 2011. In 2011, an increase in marketing budgets and the rising ubiquity and affordability of online survey software have boosted industry revenue by an estimated 14.7%.
According to IBISWorld analyst, Agata Kaczanowska, online market research and surveys are much less expensive than their traditional counterparts, which has benefited the industry. “Many companies reduced their use of marketing, market research and advertising firms,” says Kaczanowska. Instead, these firms utilized the services of online survey software companies as low costs way for them to engage their existing and potential customers at a fraction of the cost.
This Online Survey Software Industry requires a relatively low labor requirement, mostly involving the initial investment in employees to develop their software. Operators have minimal need for ongoing investment in software updates after the initial software and infrastructure has been developed. Because of this characteristic, expenses for well-run firms typically decline as a proportion of revenue and their profit grows as their business matures.
The number of industry enterprises has increased over the five years to 2011. Low entry barriers and skill requirements allow companies to actively enter the industry. Larger companies have tried to counter these trends by acquiring small niche shops and many of their main competitors. For example, in 2011 alone, SurveyMonkey acquired MarketTools' Zoomerang, ZoomPanel and TrueSample products. Earlier in the year, the company also acquired WuFoo and a 49.9% stake in ClickTools.
In the five years to 2016, more changes in media consumption habits will occur, with operators shifting toward customizing surveys for social and mobile media. These factors will provide a platform for growth for industry firms and promote revenue and profit growth. In the five years to 2016, revenue is expected to increase at an average annual rate of 9.6% to $3.1 billion.
For more information, including latest Industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld on the Online Survey Software industry for $820
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Industry Life Cycle
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Products & Services
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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.
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