Healthy Growth for Global MR; Online Poised to Overtake Telephone

ESOMAR has revealed top line results from its 2005 Global Market Research Report, showing global MR turnover up 4.3% to $23 billion in 2005, with Europe cornering 45% of the global market. Meanwhile, online research's share of data collection revenue has grown from 11% in 2004 to a staggering 20% in 2005.

The report, made with the support of KPMG, says the industry remains healthy, with longer term compound annual growth rates of 4-6%. Geographically, key growth areas are Asia and the new EU member states, while methodologically, online research continues to boom and now represents 20% of MR expenditure worldwide.

The industry's estimated global turnover is $23,290 million, up 7% in absolute terms on 2004, or 4.3% after allowing for inflation. Asia Pacific and the new EU member states showed a 7.4% real growth rate, and the 15 markets of the 'mature EU' show an encouraging 5.4% real growth rate.

Total European turnover is estimated at $10,437 million and that for North America $8,295 million, 36% of the global total.

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The five fastest growing markets identified are:

• Latvia - 34% real growth
• China - 25%
• Thailand - 23%
• Bulgaria - 22% and
• Malaysia - 20%.

Among the largest markets, growth is below the global average:

• France - 3.2%
• Germany 2.8%
• USA 2.1%
• Japan 2% and
• the UK 0.7%

Online research has nearly doubled its share of data collection revenue in a single year, from 11% in 2004 to 20% in 2005, at the expense of face-to-face interviews which are down from 31% to 21%. Telephone interviews remain the most popular method and their share declined fractionally from 24% to 22%. The quantitative/qualitative ratio remains constant at roughly 80/20.

Commenting on the figures, ESOMAR Director General Véronique Jeannin says: 'We expect the Industry's healthy growth rate to continue in the near-term driven by good economic conditions, increasing client demand for continuous multinational research projects and value added research based consultancy. In the short term the industry faces challenges of downward pressure on prices as companies pass on savings to clients from conducting online research, which are likely to be offset by demand for result from more sophisticated online research tools.'

ESOMAR gives special thanks for their contributions to John Smurthwaite of TNS Asia Pacific, Lex Olivier of EFAMRO, Jorge Frech of Mercaplan Central America and Larry Gold of Inside Research.

ESOMAR has around 4000 members in 100 countries and is online at www.esomar.org . The full report will be available in September 2006.

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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