BMRA Annual Survey Shows Growth

The British Market Research Association (BMRA) has released results of its annual survey of the industry. Total revenues for UK agencies were up 3.9 per cent [NB revised 14/4/04 to 2.8%] in 2003 to a value of £1.22 billion, although there is a marked contrast between domestic revenues, which are rising rapidly again, and international which have yet to follow.

Domestic sales, which make up 79 per cent of the market for UK-based market research companies, grew by 6.8% on the previous year, whereas international were down 5.6% [NB revised 14/4/04 to 5.9%].

The estimates are based on returns from BMRA members accounting for around two-thirds of the Association's turnover. Results for the three WPP companies (BMRB, Millward Brown and Research International), which are not permitted to submit returns of unaudited 2003 results due to US Sarbanes-Oxley legislation, have been estimated by applying growth at the average rate of the reporting members.

BMRA Chairman Peter Jackling believes that 'the strong domestic performance reflects continued strong public sector spending and general economic recovery. Looking forward, we expect the domestic market to hold up well at least until the next UK General Election. However, we remain cautious with our forecasting for international work. Continued sterling strength, uneasiness about global security and speculation about the 2004 US presidential election results may dampen spending among some of the multi-nationals'.

Other indicators support this more optimistic view, including levels of recruitment activity - MrWeb has just completed comfortably its busiest ever month, with well over 500 vacancy ads posted in March.

Leading industry figures also share the mood of cautious optimism. Stephen Factor, MD of TNS UK, says 'the mood for 2004 is more positive and upbeat... but this is against a background where the last couple of years have not been easy. There has been a little more growth - as we came to the end of the year things were picking up'.

According to Cris Tarrant, MD of BDRC, 'It's difficult to plan business at the moment. On the one hand, people are taking a long time to make up their minds and are deferring decisions about projects. On the other hand, there is a lot of 'I must have it now purchasing'. It all points to the schizophrenic nature of the business'.

Steve Hales, MD of Synovate UK, says that 'Things have freed up' compared with a year ago. 'People are looking forwards rather than backwards. At Synovate we continue to have growth plans and are optimistic about research in the UK and Europe'.

The BMRA's web site is at www.bmra.org.uk

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