Ongoing growth in online media presents both a challenge and an opportunity for the industry.
Melbourne, Australia (PRWEB) November 29, 2014
The Market Research and Statistical Services industry conducts targeted market research on behalf of commercial and governmental clients. Industry research and analysis provides information to help clients develop new products and advertising strategies, make strategic decisions and gather demographic information. This information can help client companies to optimise expenditure on advertising and promotion, and find new ways to reach more consumers and business clients. According to IBISWorld industry analyst Alen Allday, “a weak economic environment due to the global financial crisis led many consumer-focused businesses, particularly those with an emphasis on big-ticket or highly discretionary items, to slash marketing budgets and investment in new products in 2009-10.” This flowed through and reduced market research spending, with industry revenue falling for the year and only modest growth recorded in 2010-11. Industry profit also fell, as margins were driven down by price competition.
Although the industry recovered in subsequent years as demand returned (excluding a fall in census-related revenue in 2012-13, coupled with a fall in business confidence), industry profit has continued to decline due to high competition. With reduced ABS funding from the federal government in 2014-15, industry revenue growth is expected to be relatively low at 1.1%, and weak business sentiment is expected to hinder demand from clients. Total revenue is forecast to reach $2.4 billion in 2014-15, with annualised growth of 1.3% over the past five years, due to steady demand from advertising companies and media organisations looking to gain an insight into consumer activity. “Ongoing growth in online media presents both a challenge and an opportunity for the industry,” says Allday. The opportunity lies in client demand for research and statistics relating to new media audience numbers and advertising effectiveness. The challenge will be developing effective measurement systems and competing with information technology specialists, which will use their expertise to develop competing systems.
The Market Research and Statistical Services industry has low concentration, which is kept down by the large number of small niche operators in the industry, declining technology costs, and a greater range of data collection methods, such as on-line, SMS and social media. Although the Australian Bureau of Statistics (ABS) is a significantly larger organisation than others in the industry, it tends to operate according to government requirements and does not have strong market and pricing power. Many people in the industry work as consultants, by either taking on projects or subcontracting themselves out to larger operators. The industry's larger private firms have been unable to significantly increase market share levels due to the highly fragmented nature of the industry and the diverse range of clients and service segments within the industry. These trends are expected to continue in future years.
For more information, visit IBISWorld’s Market Research and Statistical Services industry in Australia report page.
Market researchers and statistical consulting companies conduct public opinion polls, and carry out qualitative and quantitative research on behalf of clients. This involves the gathering, tabulating and presenting of marketing and opinion information and data. The information gathered is usually for the purposes of understanding the opinions, needs and wants of particular demographics or targeted consumer groups. The industry includes private firms and government bodies.
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Products & Services
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About IBISWorld Inc.
Recognised 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 Australian 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 Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.