Market Research in the US Industry Market Research Report Now Available from IBISWorld

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Clients use market research companies to gather information about target markets and customers. Unfortunately for the industry, companies changed their focus from growth to survival following the recession, subsequently cutting research, development and marketing budgets in order to reduce costs. At the same time, a shaky labor market and an uncertain economic climate have caused consumer spending to fall, particularly on discretionary and big-ticket items. In the five years to 2017, more changes in media consumption habits will occur, with operators shifting their focus toward social and mobile media. These factors will provide a platform for growth to industry firms and promote revenue and profit growth. For these reasons, industry research firm IBISWorld has added a report on the Market Research industry to its growing industry report collection.

IBISWorld Market Research

IBISWorld Market Research

The recession's negative effect on consumers has hurt players serving these industries

Clients hire market research companies to gather information about target markets and customers. Unfortunately for the industry, following the recession, companies changed their focus from growth to survival, subsequently cutting research, development and marketing budgets to reduce costs. At the same time, says IBISWorld industry analyst Kevin Culbert, “A shaky labor market and an uncertain economic climate caused consumer spending to fall, particularly on discretionary and big-ticket items.” Makers and sellers of consumer goods are major users of the Market Research industry's services, so the recession's negative effect on consumers was particularly detrimental to players serving those industries. Many businesses are now focused on keeping existing customers rather than acquiring new ones. These businesses are also reducing investment in developing new products. These factors have caused industry revenue to decline at an annualized rate of 0.8% to $15.5 billion in the five years to 2012. However, revenue is expected to grow in 2012 as clients increase marketing budgets. Market research firms will also benefit from the 2012 presidential election and the 2012 Summer Olympic Games.

Although profit margins are expected to rise in 2012 as demand grows, operating margins fell during the recession when firms started to offer their services at discounted prices to keep clients. As profit margins declined, some firms were forced to leave the industry, while larger companies acquired others. Major advertising agencies have increasingly acquired market research firms as they continue to pursue value-added services in complementary industries. “For example,” explains Culbert, “WPP's Kantar Group merged with TNS to form the second-largest player in the industry in 2008.” As a result of such acquisitions, the number of market research firms has declined marginally, at an average of 0.3% annually to total 27,247 in the five years to 2012. Though there are three major companies in the Market Research industry – Valcon Acquisition Holding BV, WPP PLC and IMS Health Incorporated – their combined market shares account for less than a third of the industry.

In the five years to 2017, more changes in media consumption habits will occur, with operators shifting their focus toward social and mobile media. These factors will provide a platform for growth to industry firms and promote revenue and profit growth over the five years to 2017. For more information, visit IBISWorld’s Market Research report in the US industry page.

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IBISWorld industry Report Key Topics

Market research firms are companies that systematically gather, record, tabulate and present marketing and public opinion data.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
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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Gavin Smith
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