UK MR Industry 'Flat'

The UK research industry's turnover grew just 2.4% during 2006, roughly the rate of inflation, to £1.353 billion. Figures come from the Annual MRS Survey, which continues the series formerly conducted by the BMRA.

The previous year's BMRA study showed that during 2005 the UK market grew by 2.5%. At the time, the BMRA said it did not expect to see significant market growth above inflation for 2006.

David Barr, MRS Director General, notes that the most recent figure confirms a widespread impression of tight, intensely price-competitive market conditions, and comments: 'Increasing use of online data collection methods is delivering real benefits to clients in terms of faster results at lower prices, and this may be acting as a partial brake on revenue growth for some agencies.'

Simon Lidington MRS Chairman said that there is anecdotal evidence that some of the large international clients are diverting spending away from mainstream research suppliers and allocating part of their MR budgets with 'adjacent' businesses which draw on sources and techniques beyond conventional MR boundaries.

He added: 'Many of these 'new entrants' will tend not to see market research as their only or even their primary market activity. As such, their turnover is not yet included in the MRS annual survey, which may therefore understate the total volume of research undertaken.'

This year's industry size estimate is based on returns from MRS Company Partners (www.mrweb.com/drno/news4995.htm ) and others, accounting for around 60% of the industry's turnover. Because of US Sarbanes Oxley legislation, WPP companies (BMRB, Millward Brown, Research International) are not allowed to submit returns of unaudited 2006 results. However, these have been included in the total estimate by applying growth at the average rate of the survey respondents.

In 2005, ESOMAR reported that the total market for market research worldwide was $23.3 billion and the EU and USA together accounted for 81% of the total world market. The 2006 figures will be released at ESOMAR's 60th Anniversary Congress in Berlin in September.

The British Market Research Association (BMRA) was integrated into the MRS in April last year (www.mrweb.com/drno/news4936.htm ). The MRS is online at www.mrs.org.uk.

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