Changing media consumption and international expansion will grow revenue
New York, NY (PRWEB) September 03, 2014
The Market Research industry experienced moderate growth over the past five years. As corporate profit rapidly rose in 2010, businesses emerged from their cost-conscious slump and began to develop new products and increase investments geared towards attracting new customers. New products often require extensive market research before being launched; therefore, a significant portion of industry revenue is tied to corporate profit, corporate expenditures on research and development in addition to spending on advertising. With all of these factors increasing, Market Research industry revenue is expected to expand by an average annual rate in the five years to 2014.
According to IBISWorld Industry Analyst Stephen Morea, “As industry revenue improved, profit grew, as demand for the industry's services increased.” Additionally, in the five years to 2014, acquisitions among the industry's largest players have grown increasingly common. For example, in 2013, Nielsen, the largest player in the industry, recently acquired Arbitron, another major industry player. Major advertising agencies have also increasingly acquired market research companies in an effort to pursue value-added services in this complementary industry. As a result of these acquisitions, market research company growth is well below industry revenue growth, with the number of market research operators expected to increase at an annualized rate in the five years to 2014.
“During the next five years, changes in media consumption and the growing use of social media and mobile devices will revolutionize traditional methods of conducting market research,” says Morea. The industry will need to adapt to such trends to reflect shifts in consumer patterns and purchasing behavior. Major players will continue to internationally expand to offer services to a larger client base. As consumer spending and corporate profit rise, businesses will once again invest in market research, promoting both industry profit and revenue growth. Together, these factors are expected to cause industry revenue to increase at an annualized rate in the five years to 2019.
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IBISWorld industry Report Key Topics
Companies in this industry systematically gather, record, tabulate and present marketing and public opinion data. Examples of industry related services include political polling, sampling and statistical services, broadcast media rating services and market analysis services. Operators that conduct experimental or scientific research in fields such as economics or engineering are not included in this industry.
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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.