UK Agencies Forecasting Higher Revenues

Britain's market researchers are forecasting higher revenues for the next 12 months, according to the latest RSM 'State of the Industry' survey.

Wave 12 of the online survey was completed by 285 UK-based researchers in April/May 2012. Revenues grew by 1.7% in the previous 12 months, compared with a figure of 2.9% in the December 2011 survey and 2.2% in that of April 2011. In October 2010, the reported growth figure was 6.4%.

Forecasts for the next 12 months are higher than those given in the previous two waves - researchers forecast growth of 5.1%, compared with 4% in December 2011 and 4.3% in April 2011. However, it's evident that previous forecasts have generally overestimated.

Sentiment about the economy and the research sector has improved when compared with December 2011. More than a quarter of respondents (27%) expect the economy to improve in the next 12 months, while 23% expect it to get worse (a net of +4%). This compares to a huge net of minus 54% in December 2011.

Very small agencies - those with up to four employees - continue to experience and expect a more challenging trading environment, with organisations reporting negative growth (-3.7%) in the last 12 months. Overall, these agencies forecast 2.2% growth in the next 12 months, which contrasts with larger agencies (250+ employees) forecasting growth of 8.7%.

Web site: www.rsm1.com .