UK MR Growth / Agency Rankings for 2004

The BMRA has published its league table of UK research agencies for 2004. Whilst we remain cautious given problems in previous years with interpretation, there are some notable highlights. Total turnover for the sector was just under £1.3bn (up 5.4%), with international business in particular recovering strongly.

A combination of mergers, Sarbanes-Oxley and its own rapid growth puts MORI into 5th slot in this table, while FreshMinds (+80.6%) and MASMI Europe (+77.5%) are by far the biggest growers among the £1m+ turnover category. Among the top ten MORI (12.2%), Synovate (11.5%) and HI Europe (6.8% - NB this figure indicative only) are the fastest growers. GfK Martin Hamblin is the notable faller (-10.9%) overall although in common with Synovate and HI Europe its ranking for international turnover is higher than for the UK. RONIN, Flamingo and Lorien Customer Focus also make the top ten where international income is concerned.

The domestic sector, which makes up 73% of the market, grew by 3% on the previous year - just above the rate of inflation, but the international sector recovered very strongly (up 12.8%) from a poor year in 2003.

The Association says UK businesses and organisations are 'increasingly looking to market researchers to deliver a more holistic, strategic service, especially as they take advantage of a favourable economic climate to expand their range of products and services and their presence in international markets'.

On average, BMRA member companies with 2004 turnover of less than £10m grew by 11% over 2003, while those turning over in excess of £10m in 2004 delivered year on year growth of a more modest 4%. Below the top ten but all in the top twenty-one, Quaestor, RDSi (including Field Initiatives) and Accent all grew by more than 20%.

Sarbanes-Oxley prevents WPP companies RI, BMRB, Millward Brown UK and Millward Brown Ulster from submitting returns of unaudited 2004 results - however estimates of their turnover are included in the total for the industry. The industry size estimate is based on returns from BMRA members accounting for around two-thirds of the Association's turnover.

According to Chairman Ivor Stocker, 'We believe the overall performance reflects confidence and strength in the UK economy in general. At the same time, the relative strength of continental European markets and the Euro's performance against the pound may have given a boost to research budgets and commissions from outside the UK'.

Phyllis Macfarlane, CEO Europe, NOP World, said the increased volume of international work 'demonstrates what a global industry we have become' while MORI Chief Executive Brian Gosschalk points out that the research industry 'has grown twice as fast as the economy, demonstrating that market research is a lead indicator and is highly valued by clients in both good times and in bad'.

Stocker cautions that 'we are unlikely to return to double-digit growth for the whole industry in the foreseeable future, simply because the 2004 result reflects recovery from a weak 2003 position. The performance of the domestic market is less easy to predict in advance of the outcome of the 2005 General Election but nonetheless things look bright, as we anticipate continued growth above inflation'.

As above, please note that these figures should be regarded as preliminary only. Rankings for the top ten will change significantly once the WPP companies are added in (three of them should feature in the top ten) and there may be other adjustments or corrections.

	Total UK Turnover
		2004 vs	Total Ranking	Domestic Ranking	International Ranking
		2003 %
	2004	+ / -
Year-on-growth	5.4%			3.0%	12.8%
Estimated Industry Size *	£1,288,000,000
Domestic sector % total				73.1%
International Sector % total					26.9%
TNS plc	£161,437,000	1.2%	1	1	1
NOP World	£80,333,000	5.1%	2	2	3
Synovate	£51,895,000	11.5%	3	6	2
Ipsos (UK) Ltd	£49,423,000	5.1%	4	4	5
MORI	£44,247,000	12.2%	5	3	11
Information Resources	£35,174,000	4.6%	6	5	15
HI Europe Ltd **	£23,500,000	6.8%	7	8	4
Incepta Marketing Intelligence	£20,000,000	2.0%	8	7	7
GfK Martin Hamblin	£15,486,000	-10.9%	9	13	6
ORC International	£12,520,466	0.1%	10	9	12
* The industry size estimate is based on returns from BMRA members accounting for c.65% of the Association's turnover. ** Figures provided by HI Europe are indicative figures only

The BMRA is online at www.bmra.org.uk and the full table can be downloaded at www.bmra.org.uk/documents/370.pdf

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

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