Minimal Growth for MR's Global Top 25

Revenues for the top 25 global research firms increased 3.9% last year, to $18.9bn, according to the new Honomichl Global Top 25 ranking, to be published in the AMA's 'Marketing News' this month. Allowing for inflation, the figure equates to a tiny real increase of 0.6%.

The figures - covering the calendar year 2008 and comparing it with 2007 - have been adjusted to allow for acquisitions and exclude the effects of exchange rates. The 'real growth' figure of 0.6% compares with 4.7% real growth between 2006 and 2007.

Author Jack Honomichl says 12 of the Top 25 organizations had a revenue decline in 2008, or did not grow enough to cover the inflation rate of 3.3%. A further sign of the onset of recession is the fact that the list's 17 publicly-held research conglomerates saw their total market capitalization fall by nearly 37%.

Despite the tough times, acquisitions continued apace through 2008: the top 25 as a group bought 32 research firms. 31 of these had total revenue of $0.3bn - the other was TNS with revenue $2.1bn. TNS (pre-acquisition by WPP), Nielsen, IMS Health, GfK, Ipsos and Synovate all made acquisitions of firms with revenues totalling between $27m and $47m. As in previous years, almost all these buys were of research firms outside the buyer's home country.

Kantar has taken second spot with the TNS buy and is now closer to first placed Nielsen than third placed IMS Health in terms of global research revenues. The only firm to drop out of the top 25 was entertainment specialist OTX. Replacing them and TNS are two new firms, Paris-based Mediametrie and London-based YouGov Plc at #22 and #24 respectively.

Honomichl notes that the leaders of the big firms are 'generally not well known in the United States research community. They do not attend research industry conferences, and are seldom recruited to speak at such forums. Yet, as a group, they are the most powerful (and well paid) executives in our industry. Many had no career experience in the research industry prior to their present job.'

The full report and statistics will appear in Marketing News on Aug. 30.

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