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Encouraging, advancing and elevating market research worldwide No 47 | September 2014 
1 
RISE OF THE MACHINES Turning the corner 
A brightening outlook 
New revenue streams 
New horizons 
RESEARCH WORLD I 47 | S b 2014 
7
Published by 
4 RESEARCH WORLD | September 2014 
Encouraging, advancing and elevating market research, worldwide. 
REguLARS FEATuRES 
6 
EdiToRial 
A whole new world 
83 
RW ConnECT 
Big data and the future of 
qualitative research 
83 
dR. PETE 
The walk-in clinic for research ailments 
85 
MEdia SCan 
Driving brand advertising into online 
channels 
86 
MaRKETinG CaSE HiSToRY 
How changing consumer behaviour may 
challenge traditional marketing research 
88 
ESoMaR lounGE 
90 
ESoMaR CalEndaR 
26 RESEARCH CHALLENgE 
ThE NEw Look of 
ANALyTiCS 
As we’re sparring, my kickboxing trainer 
asks me the same question in every 
session: “Where are you looking?” 
38 RESEARCH IN BuSINESS 
ThE fUTURE of MARkET 
RESEARCh 
Full-service-self-serve research 
60 gLOBAL MARKET RESEARCH 
MoDEST GRowTh foR 
woRLD’S LARGEST 
RESEARCh fiRMS 
The world’s largest 25 marketing research 
firms experienced modest revenue growth 
in 2013, driven by syndicated services firms 
and held in check by changing currency 
exchange rates and flat revenue per 
employee. 
66 BOuNDARIES 
SCoUTiNG foR GRowTh 
What is the best way to reach girls and 
young women for the World Association of 
girl guides and girl Scouts (WAgggS) in 
Malaysia, Madagascar, Oman, Poland and 
St. Vincent and the grenadines? 
87 ESOMAR ANNOuNCEMENT 
ESoMAR MEMBER ExPELLED 
foR BREACh of iCC/ESoMAR 
iNTERNATioNAL CoDE 
Editor-in-chief 
Simon Chadwick 
Editors 
Angela Canin, Kathy Joe 
Sub-editor 
Christopher McLaren 
Editorial Board 
Rex Briggs of Marketing Evolution 
Ansgar Hölscher of Beiersdorf 
Jeffrey Hunter, Consultant 
John Kearon of BrainJuicer 
David McCaughan of 
McCann Erickson 
Sean Meehan of IMD 
Contributors 
Jo Bowman, Robert Heeg, 
Manfred Mareck, Tim Macer 
Advertising sales 
John van Hoop 
business@esomar.org 
Production co-ordinator 
Mascha Ringers 
Lay out & Art direction 
Puntspatie [bno] 
Print 
Joh. Enschede Amsterdam 
Subscriptions 
customerservice@esomar.org 
Research World welcomes contributions 
and reserves the right to select and edit readers’ 
contributions. 
Contributions should be sent to 
angela@esomar.org 
Whilst every effort is made to ensure that 
the information in this magazine is correct, 
ESOMAR does not accept liability for any 
inaccuracies that Research World might contain. 
The views expressed in this publication are not 
necessarily those of ESOMAR. 
Copyright © ESOMAR 2014. All rights reserved. 
No part of this publication may be reproduced in 
any form or by any means without prior permission 
in writing from the publisher. Research World is 
published six times a year by ESOMAR, Atlas 
Arena, Hoogoorddreef 5, 1101 BA Amsterdam, 
the Netherlands. 
Tel: +31 20 664 2141. www.esomar.org 
® Research World is a registered trade mark 
of ESOMAR 
ERRATUM 
The Data, analysis, action! article in the June/July 
of RW should have stated that it was the father of 
the teenager who didn't know she was pregnant 
and who then apologised to Target for creating a 
scene when he found out from his daughter that, 
indeed, she was pregnant.
RESEARCH WORLD | September 2014 5 
SEPTEMBER 2014 
32 OuT OF THE BOx 
RISE OF THE MACHINES 
Digital pioneer Andy Hobsbawm tells Jo Bowman 
the machines are here. 
10 RESEARCH CHALLENgE 
DATA viSUALiSATioN iN 
MARkET RESEARCh 
Mention data visualisation to any three 
researchers, and reactions will range from 
enthusiasm – and even conviction – to 
scepticism or despair that it is another 
example of “dumbing down.” 
20 BOuNDARIES 
ThE wAy of ThE MAGPiE 
A three-step programme to transform 
curiosity into inspirational thinking and 
doing 
54 RESEARCH CHALLENgE 
DoiNG MoRE wiTh MoRE 
Multi-phase and hybrid studies yield 
greater depth 
48 ESOMAR gLOBAL RESEARCH 
TURNiNG ThE CoRNER 
Returning confidence and increasing 
investment in North America have helped 
counter the effects of slowing growth in 
the world’s biggest emerging economies 
in 2013. 
72 TRENDS 
NEw hoRizoNS, NEw 
REvENUE STREAMS 
The research and marketing giant WPP 
now makes 50 percent of its money from 
markets and tools that didn’t exist in the 
year 2000. CEO Sir Martin Sorrell explains 
the rise of data – and why it doesn’t quite 
have all the answers. 
78 PRIVACY 
To ARMS, SMART DATA 
SCiENTiSTS! 
How change, science-fiction and privacy 
may be key to safeguarding research
EDITORIAL 
SimOn CHADWiCk 
A whole 
new world 
6 RESEARCH WORLD | September 2014 
i said i pulled these facts and figures out at random, but actually, 
when you look at them all together, they form a mosaic of the 
world of research in the not-very-distant future. it is a future that is 
intriguing and exciting, even if it is one for which we have to 
mindfully change in order to be successful. and that brings me to 
perhaps the most intriguing question of all: what type of people, 
with what skill sets and what character traits, will lead us to that 
success? 
Clearly, they are going to have to be people who are naturally 
curious and who have the ability to handle large and diverse data 
sets. They are going to have to be digitally capable, too, but at 
the same time possess the insight and empathy to really 
understand consumers and the ‘why’ behind all that data. They 
are going to have to be at ease in a multicultural world, and, most 
of all, they are going to have to have the ability to take all of this, 
synthesise it, put it into stories and visuals that are easily 
understood and then consult on its meaning. 
Very likely, we will not find all these attributes in one person, 
but the concept of team collaboration is one that is very much 
taking hold today. one can visualise teams of specialists, data 
analysts, synthesisers, storytellers and consultants coming 
together to bring real impact to the research that they design and 
disseminate. 
But, most excitingly, many of the traits that i have outlined are 
the ones that characterise the Millennial Generation– 
collaborative, curious, digital-native, data-proficient synthesists 
who are completely at home with multi-tasking and dealing with 
diverse sets of information in real time. 
The fact that this generation is gearing up to assume 
leadership positions in the market research and analytics industry 
gives me tremendous hope for the future. 
This month’s issue is a must read from cover to cover for 
those wanting to gain a comprehensive idea of where we 
are going as an industry/profession and how we are going 
to get there. But for those of you who are just skimming 
until that plane ride where you catch up on all your reading, let 
me pull out some choice bits at random for you to chew on: 
• 50% of WPP’s data investment Management (aka Kantar) 
revenue now comes from markets and tools that did not exist 
back in 2000. Who said that the mega research companies are 
slow to change? 
• Martin Sorrell, the Warren Buffett of media and market research, 
is placing heavy bets on everything digital –and on the BRiCS. 
• The ‘internet of things’ will create brand relationships that are 
far more binding than those of today –and, in the process, be a 
bonanza for data scientists and market researchers. 
• The combination of big data and qualitative research means a 
big win-win for research. 
• Qualitative research is itself creating ‘little big data’ in the 
thousands of pieces of text and video imagery that it is capable 
of generating in one digital or mobile project –and the rise of 
multi-part or sequential qualitative projects will only accelerate 
that. 
•We are the “curiosity industry.” 
• Co-creation, synthesis, storytelling, predictive analytics, mobile 
and passive data collection will be the pillars of our profession 
in the future. 
• data visualisation, a critical part of our success in the future, 
takes expertise, analysis, teamwork and thoughtful design to 
really work. 
•We are in the midst of “a technological revolution and a 
consulting evolution.” 
• ‘agile research,’ in which research processes are increasingly 
automated, will free up researchers to add consultative value in 
a way that they have not been able to do in decades.
RESEARCH WORLD | September 2014 7
8 RESEARCH WORLD | September 2014
RESEARCH WORLD | September 2014 9
RESEARCH CHALLENgE 
Tim mACER
Mention data visualisation to any three researchers, and reactions will range from enthusiasm–and 
even conviction–to scepticism or despair that it is another example of “dumbing down.” 
10 RESEARCH WORLD | September 2014 
graphic in the uK
John Schiela, vice president of 
converged technology and media at 
Phoenix Marketing, a uSa-based 
consultative research company, says, “We 
use a lot of different tools to visualise data: 
Marketsight, dapresy, Excelsius; we do 
stuff in SQl Server, HTMl. Each has their 
benefits and their challenges.” 
Schiela has moved both internal 
analysts and clients away from 
conventional cross-tabular reports to 
predominantly visual and interactive 
methods. He cites two major benefits: 
“one is to avoid ‘death by data.’ i think 
tables really limit how you look at data”; 
secondly, he asserts, “visualisation allows 
you to do [what] we often don’t do as an 
industry, and that is to pull in other macro-level 
data and visualise this, too.” For 
Phoenix, this means moving towards what 
Schiela describes as “a more business-report 
style of presentation,” focused on 
business questions and solutions, “as 
opposed to a typical research report that 
analyses the data you collected but does 
not address the business solution.” 
Schiela considers the view that 
visualisation results in a diminution of 
understanding or the misplacement of 
rigour. For him, it is a malaise that stems 
from execution: “We have a tendency to 
say, ‘i need a dashboard.’ Someone takes 
the data, dumps it in, and–hey, you’ve got 
a dashboard! But they’ve not done the 
business-process analysis, so you end up 
with a pretty little dashboard that does not 
show you anything from the business 
perspective.” 
He also sees that the role visualisation 
can play in the analytical process is often 
overlooked in research: it can offer a 
better way to pick up weak trends. He will 
use miniaturised charts with rating scales 
which “you can eyeball in seconds,” 
sometimes fashioning hundreds of these 
tiny bar charts onto one sheet. “The 
RESEARCH WORLD | September 2014 11 
and then there are these tools that very 
quickly make what are very good-looking 
dashboards. a mistake people make is that 
a dashboard that may be fantastic for 
analysing the story can fall apart when they 
then try to go on and communicate that 
insight further.” 
Whitehead emphasises the need to 
understand the audience and not assume 
that one dashboard will fit all eventualities. 
She describes the solution she would 
advocate for a large media-buying client 
(which could apply equally to any major 
brand): “The user-journey for a chief 
marketing officer is probably two to three 
choices to go through to reach the 
decisions she needs to make, and for this 
you need a very simple representation. She 
can go and look at the workings, but she 
probably does not need to. an analyst tool 
lets you turn all the dials all the time and 
check scenarios.” 
“But the chief marketing officer still 
needs to be able to check the workings; 
she won’t have got to that position without 
being able to,” adds Sturt. “and if you 
present junior analysts with a really slick 
interface with one or two insights, they will 
immediately distrust it because it looks too 
editorialised and too curated.” 
Sturt mentions a particular appetite 
among research companies and their 
clients for visual storytelling combined with 
interactivity. according to Whitehead, 
“market research is more advanced than 
many industries, and there is an increasing 
understanding that creativity has a place 
among more thoughtful market research 
firms.” 
whAT’S oUT ThERE? 
Technology providers have responded, too; 
from a position of there being no specialist 
visualisation tools available for survey data 
five years ago, there are now several, 
including dapresy, Marketsight and E-Tabs. 
The craft of presenting data as 
images is suffering something of an 
image problem in our industry, 
even though it is unarguably the 
direction of travel that data-saturated 
enterprises are expecting their insight 
providers to take. are researchers right to 
be sceptical? i spoke with a range of data-visualisation 
proponents who have no such 
qualms. 
The uK’s Guardian newspaper has, over 
the years, led the field with its 
extraordinarily revealing data visualisations 
and infographics. its in-house digital 
agency provided data visualisation and 
storytelling services to clients and has 
recently been spun off under the name 
Guardian digital agency but it has recently 
been acquired by Kantar, and now 
operates under the name Graphic. it works 
increasingly with market research 
companies, visualising their data and 
providing training in visual storytelling. 
Emma Whitehead, head of Graphic, says: 
“The challenge at the heart of data 
visualisation is the tension between 
creativity and scale. Technology gives you 
scale, and people believe that must scale 
creativity as well –which is a very significant 
misconception.” Whitehead views the 
emergence of web-based diY infographic 
tools like Visual.ly and infogr.am as 
‘potentially dangerous.’ “i can fill in a 
template that will give me a nice long 
infographic, but that is not the same as an 
analyst and a designer really thinking 
about it.” 
DUMBiNG DowN? 
Tobias Sturt, design and user experience 
manager at Graphic, advocates a carefully 
considered three-stage process to 
visualising data into either dashboards or 
infographics (see the accompanying 
infographic). Each stage, he says, requires 
different people with different skill sets: 
“don’t listen to people who say they are a 
data visualisation expert, and all you need 
to do is hand over your data– it is all about 
teamwork.” 
Sturt is of the view that it is not 
visualisation that risks trivialising data but 
those who are willing to take a ‘clip-art’ 
approach to their visual presentation of 
data. “There is a new wave of tools coming 
along,” he says. “Tableau is getting bigger, 
“I think tables really limit how 
you look at data.”
12 RESEARCH WORLD | September 2014 
for both data integration and interactivity. 
He says, “if it is not wired up to be 
connected to the live data–and constantly 
changing– it is just a static chart. and 
interactivity, which is not the same as 
integration, also matters. Giving the user 
controls so they can manipulate what they 
are seeing makes for a much richer 
experience.” 
NETwoRkS 
an area of data visualisation that warrants 
more attention in research is network 
mapping. Based on network theory, which 
sits somewhere between sociology, 
are used to working in a structure of 
question by question, slide by slide,” he 
says. “So we use a lot of visualisations that 
basically have the same structure as a 
PowerPoint deck, just presented online. 
a good data visualisation will create a 
story that helps the user to understand. it 
will filter away everything that isn’t 
relevant. That detail will still be there in the 
background, but only when you ask for it. 
a dashboard should be worth a hundred 
slides.” 
Michael denitto, CEo of Marketsight, 
which also provides online charting and 
dashboard software, speaks of the need 
industry has developed something of a 
fallacy about significance tests,” he says, 
alongside other analytical methods such as 
‘top-two-box’ reporting: “You have to be 
careful you are not doping the results by 
doing this.” 
The specialist technical providers are 
mindful of the challenges visualisation 
presents to those working in market 
research. Torbjörn andersson, CEo of 
dapresy, which provides survey-data 
visualisation software, sees researchers 
struggling to break free from PowerPoint 
and ‘sequential thinking’ when they try to 
create a dashboard or infographic. “They 
A network map of tweets containing #ESoMAR reveals trending topics and connections between bloggers, companies 
and publishers active in the world of research 
Created with NodexL (http://nodexl.codeplex.com) from the Social Media Research Foundation (www.smrfoundation)
with Pew Research, which identified 
different typologies of social networks in 
Twitter,1 including ‘community clusters,’ 
‘brand clusters’ and ‘polarised’ networks. 
He says the story the research uncovered 
is that “the shapes of these collections of 
connections are important. if you look at a 
topic and it is polarised, then you need to 
do something different to one that is 
highly interconnected.” The shapes can 
determine the actions. 
What unites each of these data-visualisation 
advocates is the power they 
see in its role in data analysis as well as in 
presentation. data visualisation challenges 
a number of research orthodoxies, not 
least because it demands science and 
creativity work hand in hand. While we 
can’t all be designers, we can all heed the 
call to develop our visual literacy. 
1 “Mapping Twitter Topic Networks:” From Polarized 
Crowds to Community Clusters, Pew Research 
Center, bit.ly/1daAdZV 
RESEARCH WORLD | September 2014 13 
“There is a point where we are taught what is a line 
chart, but at no point will [most people] get taught 
what a network is. 
Most of us have an obstacle to 
overcome in learning how to interpret 
these maps. as a network advocate, Smith 
devotes much of his time to “cultivating 
visual literacy” in his audience. as he 
observes, “There is a point where we are 
taught what is a line chart, but at no point 
will [most people] get taught what a 
network is. i have taken on the task of 
converting the universe to understanding 
what a network chart is. and it’s not 
trivial.” not least because they also use 
advanced statistics behind the scenes that 
work on what he describes as “collections 
of connections” in order to discern 
patterns. 
What this can mean for the researcher 
is illustrated in a report Smith worked on 
statistics and engineering, network maps 
can unravel the complex webs of 
interaction that exist within social networks 
and provide a meaningful way of 
interpreting geo-locational data from 
mobile survey apps. network maps have 
always been notoriously difficult to 
produce, but one not-for-profit outfit, the 
Social Media Research Foundation, has 
recently developed nodeXl, an open-source 
application which generates 
complex network maps that are not only 
relatively easy to interpret but also simple 
to create. 
Marc Smith, chief social scientist at 
uSa-based Connected action Consulting 
Group, is a sociologist with a particular 
interest in network analysis. He is also a 
major contributor to the Social Media 
Research Foundation’s nodeXl initiative. 
Smith is convinced of network maps’ 
relevance to market research. He says: “a 
map performs three different tasks: Where 
am i? Where else would i like to be? and 
how do i get there? Entire networks can be 
mapped, and when you do that, they will 
tell you a story. For example, a network 
can tell you who is the most important 
person in a network. So ‘Where am i?’ 
‘Who’s important?’ and ‘How can i get to 
them?’ are three important stories we can 
tell with network maps.” They also happen 
to be the same questions asked by a 
majority of research projects. 
Marc Smith is chief social scientist at Connected Action Consulting group in the uSA. John Schiela is VP of 
converged technology and media at Phoenix Marketing in the uSA. Tobias Sturt is design and user 
experience manager at graphic in the uK. Torbjörn Andersson is CEO of Dapresy in Sweden. Michael 
DeNitto is CEO of Marketsight in the uK. Emma whitehead is head of graphic in the uK. Tim Macer is 
managing director of meaning ltd and honorary research fellow at the university of Winchester in the uK.
14 RESEARCH WORLD | September 2014
RESEARCH WORLD | September 2014 15
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RESEARCH WORLD | September 2014 19
BOuNDARIES 
CHRiSTOpH WELTER 
The Way of the Magpie 
A three-step programme to transform curiosity 
into inspirational thinking and doing 
Market research–or, perhaps, the curiosity industry–needs to up its ante specifically when it comes to 
delivering fresh and inspirational ways of thinking 
20 RESEARCH WORLD | September 2014 
Step 1. Experiment 
The american writer Ralph-Waldo Emerson once said: “all life is 
an experiment. The more experiments you make the better.” So 
dabble with different topics and pastimes to your heart’s 
content –anything that has the bright shine of new knowledge or 
even plain and simple fun. don’t think about how ‘useful’ it will be 
for you; just collect and marvel. 
niklas luhmann, one of most important sociologists of the 
20th century, was famous for keeping an elaborate filing system, 
his “Zettelkasten, ”where he stored snippets of information 
pertaining to a myriad of different fields of knowledge. He liked to 
keep them on file just in case they’d become useful at some point. 
artists and craftspeople, too, like the fashion designer Paul 
Smith, are renowned for maintaining workspaces in the style of a 
Renaissance “Wunderkammer,” stacked full of strange and 
beautiful objects. 
There is so much information in the world that it’s quite 
impossible to take it all in. But instead of narrowing our vision and 
pursuing knowledge in our field only, let us approach the world of 
knowledge as a playground of possibilities. 
Step 2. Explore 
But going broad is not enough. next, we need to go deep. at this 
point, we should stop dabbling and start focusing. Pick one of the 
shiny topics or activities, and explore it thoroughly. devote time 
and passion to really understanding its intricacies. Pursue it with 
the curiosity and the fervour of a child exploring the world for the 
first time. 
So go out and take a course in Japanese calligraphy, even 
though you have no one to write to in Japanese. or go and learn 
how to 3d-print objects, even though you don’t use a 3d printer 
in everyday life. 
non-utilitarian learning will transform you in subtle ways. 
While immersing yourself, you will 1) acquire new skills; 2) gain a 
By investing time in passionately exploring foreign fields of 
knowledge and skill without utilitarian regard, we can 
create the necessary momentum and sail on the winds of 
change–with the magpie as our spirit animal. 
The word is out: any business-service provider that wants to be 
successful in today’s environment needs to come equipped with 
the ability to engage, inspire and wow their clients. Market 
research is frequently diagnosed with an image problem, yet i 
would argue that our industry is ideally equipped to excel in this 
race. 
at the most basic level, it is said that the sheer number of 
interests you have has a fundamental influence on your overall 
level of ‘interestingness.’ in that case, we should easily be able to 
outperform our competitors –after all, we are an industry founded 
upon curiosity. So how can we cultivate our curiosity more so as 
to create the kind of environment in which fresh thinking can 
thrive? let us look to one of the most curious species in the 
animal world for inspiration– the magpie. 
ENTER ThE MAGPiE 
Consider the magpie, that famously feisty stealer of all things 
shiny. This bird is believed to be one of the most intelligent 
animals on this planet, capable even of recognising its own mirror 
image. Yet magpie’s pursuit of all things shiny is something of a 
mystery to researchers. For all we know, they pick up glitzy things 
and bring them to their nests without any functional intent–just 
out of sheer curiosity and playfulness. 
i think we can learn from this bird’s refreshingly playful 
attitude: we can learn to let go of our overly utilitarian, linear and 
goal-orientated way of pursuing knowledge and skills. let the 
magpie stand instead as a symbol of taking a non-directed 
interest in the world, and follow me on a three-step process to 
inspirational thinking.
RESEARCH WORLD | September 2014 21
User instructions for successful magpie-ing: Please try at home 
22 RESEARCH WORLD | September 2014 
and fresh approaches in the industry. Consider the theatre fan 
who pursues stage acting as a hobby in her free time, and one 
day it hits her that a group of actors could help revolutionise the 
debrief as we know it by acting out findings live with clients. or 
take the animal lover who relentlessly ponders the intricate ways 
in which we need to understand different creatures’ sensory 
perceptions so that we can treat all animals ethically: one fine 
evening it hits him that we humans are animals with different 
sensory faculties too, but research so far has left the gap wide 
open. Thus the idea of five-senses research is born. 
To make the most of it, we should try to instil the magpie 
attitude deep into the organisational culture of research: 
• Make room for inspiration, spaces where people can dabble 
with their curiosities. Even just having a physical library of 
inspiring books will make a difference over time. 
• Encourage people to exploit their life’s passions, possibly in 
conjunction with flexible career and work-time models. 
• Create spaces where minds and ideas can connect, whether 
they are inspiration sessions or evening salons for discussion on 
hot topics. and invite other magpie thinkers along to join. 
The wonderful thing about magpie-ing is that all you need is 
curiosity and passion. let them guide you, and don’t get in their 
way. 
fresh perspective on things; and 3) meet new people. or, as the 
philosopher Roman Krznaric notes, it “may be worth learning to 
wear the hats of different professions in order to stimulate us to 
ask new questions or challenge our assumptions and 
conventional thinking.” 
Step 3. Connect 
The last step of magpie-ing is the one where you wait … and 
trust that magic will happen. Trust that your newly acquired 
knowledge and skills will eventually connect you with other ideas 
in ways hitherto unforeseen. History is full of examples that such 
magic is quite real. 
in 1931, there was a humble draftsman working at the london 
underground Signals office by the name of Harry Beck. Harry 
had a passion for physics and had acquired quite a good bit of 
knowledge of electrical circuit diagrams. and then one fine 
day –Boom! – it hit him that the apparent confusion of the london 
underground could be seen and rendered as a circuit diagram, 
and the iconic version of the underground map we all know was 
born. 
Charles darwin took time off from his studies in medicine in 
1827 to go out on a geological excursion studying fossils. He was 
both astounded and puzzled by their geographical variation. He 
published amazingly detailed illustrations of the fossils, but at first 
nothing much happened. Years later, when reading Malthus on 
the struggle for existence, new neural connections started 
forming, and gradually, over the following months, an idea was 
born: natural selection. 
Maria Popova, curator of the knowledge and inspiration blog 
Brain Pickings, says: “in order for us to truly create and contribute 
to the world, we have to be able to connect countless dots, to 
cross-pollinate ideas from a wealth of disciplines, to combine and 
recombine these pieces and build new castles.” 
That, in essence, is what a magpie attitude to inspiration is all 
about. 
ThE MAGPiE RESEARChER 
Great artists and scientists are very often magpie characters, but 
what is a researcher if not a mixture of artist and scientist? 
Magpie attitude has lead and is continually leading to innovation 
Christoph welter 
is director of strategy at Point-Blank International in germany 
1. Experiment 
Go out there and just dabble with new 
knowledge and activities. Like the 
magpie, pick things up just because they 
are glitzy and shiny. And if they fail to 
spark any deeper interest – let them go. 
Dabble, experiment, play. 
2. Explore 
Focus on one of the things you have 
picked up – the one that inspires you 
most. Dedicate your time and attention 
to it. Bring it into your ‘magpie nest’ and 
make it your own, but still be ‘intent’ 
free with your choice – go for what 
drives you, not for what you consider 
useful. 
3. Connect 
Trust and wait for magic to happen. The 
new perspectives and skills you have 
acquired will transform and eventually 
enable you to rethink your job in novel 
ways. Lucky collisions between ideas old 
and new will spark fresh thinking and 
doing.
RESEARCH WORLD | September 2014 23
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RESEaRCH CHallEnGE 
BRiAnA BROWnELL 
The New Look 
of Analytics 
As we’re sparring, my kickboxing trainer asks me the same question 
in every session: “Where are you looking?” 
26 RESEARCH WORLD | September 2014
something cold and complicated. as a 
result, the ability to communicate results to 
a wider audience in a compelling way, 
regardless of that audience’s technical 
sophistication, is an essential skill for any 
analytics professional. 
Storytelling has been a major trend in 
advertising, because stories have a power - 
ful emotional draw. But this approach has 
relevance within an organisation as well. 
uptake of a new strategy within a business 
depends both on internal stakeholders’ 
desire and ability to execute it. it is no 
longer required (or even desirable) to fill 
100 slides with tables and discuss minute 
statistically significant comparisons. 
illustrating findings using graphics, video 
and stories is becoming the norm. 
The balance between actionable and 
optimal differs considerably within each 
organisation, but the common struggle in 
describing ever more complex statistical 
methods suggests that the art of 
explanation promises to be an important 
point of discussion in the field for a while 
yet. Changes in communication style both 
between organisations and within an 
organisation have a major impact on 
finding and retaining talent in an area 
where the trifecta skill-set of business 
acumen, people skills and technical skills is 
already nearly impossible to come by. 
LookiNG AhEAD 
Ever since nate Silver made a nearly dead-on 
prediction of the 2012 uS presidential 
election results, while at the same time 
various pollsters around the world were 
way off in their election forecasts, analytics 
has been both harkened as a miraculous 
tool and reviled as unreliable. it’s no 
wonder that many businesses have also 
shown an increased interest in using 
predictive analyses to enhance the insights 
they get out of their analysis of static data, 
while at the same time failing to implement 
those results (or doing so only with 
considerable trepidation). 
With all the technological advances in 
the ways in which data can be stored and 
quickly analysed–and results applied–new 
models can be quickly examined and fine-tuned 
as they are operationalised. 
Refinement and testing that were not 
previously possible have been enabled by 
increasingly fast processing power. 
RESEARCH WORLD | September 2014 27 
or industry movement, companies are 
increasingly looking inward as they 
attempt to streamline their brand promise 
and improve their competitiveness in the 
marketplace. 
LookiNG foR CoNNECTioNS 
‘Big data’ has been a big buzzword for a 
while, and many businesses feel that 
they’re missing out on the trend if they 
aren’t doing something with big data. in 
reality, there isn’t a magical big data 
formula that will turn a data set into 
relevant, actionable insights. in many 
cases, the biggest issue with big data is 
indecision– there are so many possibilities 
that it is very difficult to determine what 
type of analysis might be appropriate. 
With such an array of data sources, 
dashboards are increasingly the go-to hub, 
as they provide a single place where 
businesses can easily see key metrics 
across different business lines, locations, 
time frames and, yes, big data sources. 
Collating and visualising the data is only 
part of the issue, however. often, finding a 
meaningful way to deal with that big data 
question mark takes a considerable 
amount of art and ingenuity – skills that 
take time to develop. 
Fortunately, there are some 
straightforward strategies to consider. one 
of the great promises of big data is its 
ability to facilitate insight triangulation– 
looking at the similarities and differences 
in multiple data sets which are not neces - 
sar ily linked together, such as syndicated 
products, primary research and business 
intelligence. Together, they can provide 
much more insight than any one in 
isolation. 
LookiNG fRiENDLy 
if the word “analytics” makes you think of 
a concrete room filled with giant computer 
towers and endless reams of numbers 
flashing across the screen, you’re not 
alone. analytics is often perceived as 
While i am supposed to be 
looking broadly at the 
various places that a punch 
or kick could come from, 
noticing and taking advantage of 
potentially beneficial openings, i am 
almost always focusing on the task 
immediately at hand–avoiding that fist 
coming right towards my face. 
often it’s the same at the office, where 
there are a myriad of daily distractions. 
While switching focus from project to 
project, it’s rare to find the time to look 
more broadly at trends in industry and to 
notice the similarities in the problems 
faced by many businesses. But major 
changes in consumer and business 
behaviour are becoming more and more 
evident across sectors. These changes give 
an indication of how the relevance and 
demand for certain specialised analytics 
may rise, thereby shaping the new look of 
analytics. 
LookiNG iNwARD 
Brand is no longer exclusively the domain 
of the marketing and communications 
departments but rather has become an all-permeating 
quality: a company’s brand is 
viewed as an extension of its corporate 
culture. The focus on united culture and 
value proposition means that everyone 
from the frontlines to the C-suite influences 
the company’s identity from the inside out. 
at the same time, customers are also 
expecting to be closer to companies 
producing the products they use and love. 
Many businesses have allowed customers 
to come in from the outside, treating them 
as important partners and sounding boards 
for new product development and 
adjustments to the customer experience. 
as a result, the distinction between 
company insiders and outsiders is 
becoming increasingly blurred. While most 
analytics in the past was outwardly focused 
on things like understanding consumer 
brand perceptions, competitor behaviour 
“Brand is no longer exclusively the domain of the 
marketing and communications departments.”
28 RESEARCH WORLD | September 2014 
natural experiments with pricing, positioning and 
marketing messaging are becoming common. 
whERE ARE yoU LookiNG? 
With the term ‘big data’ being bandied 
about in mainstream business magazines 
and infographics of all kinds clogging up 
our Facebook feeds, the major, rapid 
changes in analytics are set to become 
increasingly important. Broader trends in 
operations management continue to affect 
the demand for specialised analytics. 
Fortunately, analytics is by its nature 
reflective. Trends we see when looking 
outward can have a great influence on how 
we are able to position ourselves in regard 
to clients –and within our own 
organisations. By searching for ways that 
analytics can provide increasing value in 
today’s and tomorrow’s economy, we can 
make sure that data science remains a 
crucial investment for businesses in years 
to come. 
with video camera capabilities but also by 
widespread video sharing online. Making 
use of mobile technology to understand 
how location fits into the bigger research 
picture in terms of service offering, 
advertising and targeting remains a 
promising area to explore more fully. 
LookiNG BENEATh ThE SURfACE 
indirectly collected data about behaviour 
via devices such as door counters, outdoor 
sensors and time-usage recorders is 
quickly increasing in variety and availability. 
This passive data has the great advantage 
of providing the opportunity to compare 
observed behaviours to peoples’ 
perceptions of their own behaviour. 
natural experiments with pricing, 
positioning and marketing messaging are 
becoming common. 
Many organisations are interested in 
doing their best to optimise offerings 
before bringing a product to market, and 
this explains the popularity of data-collection 
methods that attempt to elicit 
naturalistic information about likely 
behaviour prior to launch. increasingly 
popular methods include neuroscience or 
gamification techniques, both of which 
attempt to circumvent our tendencies to 
rationalise past behaviours and explain 
motivations when asked about them 
directly. Combining implicit and explicit 
methodologies is becoming an 
increasingly powerful way to analyse and 
predict behaviour. 
Regrettably, though, most sources are 
at present vague about the actual 
methods used in forecasting, while at the 
same time seeming to overpromise results, 
thus making it difficult to separate the 
marketing hype from any truly profound 
new prediction methods. let’s hope 
increased interest will lead to increased 
transparency in this area. 
LookiNG AT LoCATioN 
With smartphone penetration steadily 
marching up in nearly every country 
around the world, mobile data is a major 
opportunity for insightful analysis into 
culture, lifestyles and behavioural patterns. 
location-based data has been used in 
passive ways to optimise street traffic, 
predict repeat business, track customer 
movement within an establishment and 
optimise new store placement. 
active data uses mobile ethnography, 
and this “day-in-the-life” type of deep 
qualitative research is made possible not 
only by the prevalence of smartphones 
Briana Brownell 
is manager of analytics at Insightrix Research in 
Canada
RESEARCH WORLD | September 2014 29
30 RESEARCH WORLD | September 2014
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32 RESEARCH WORLD | September 2014
OuT OF THE BOx 
JO BOWmAn 
Rise of the 
machines 
digital pioneer andy Hobsbawm tells Jo Bowman the machines are here. 
model, renting them on a thrust-per-second basis in a way similar 
to small businesses buying services from amazon. Such a model 
is made possible because of instruments that allow remote 
monitoring of each engine. The engines, in a sense, “talk” to the 
engineers back at HQ. 
imagine this model applied to car insurance, Hobsbawm says: 
already, tracking devices allow policies to be altered according to 
the way individuals drive, but what if you could have a policy for 
your regular routes and then upgrade when you go away for a 
long weekend? in healthcare, a “smart pill” has been approved 
for use by the uS Food and drug administration. “it’s sort of the 
equivalent of swallowing an entire surgical team in terms of the 
diagnostics – the idea of new technologies and pathways that 
allow you to remotely monitor health and even administer 
treatment, or use wearable technology to encourage people to 
lead healthier lifestyles so they don’t get ill in the first place.” 
For objects to be connected with the internet, they need to 
become searchable resources with their own digital footprint: an 
identity that can be searched, linked to, shared and manipulated. 
This means objects can be both virtual and physical. Your car, for 
instance, could then become part of your social network. “i’m not 
entirely sure why you’d want a car to be part of your social 
network, but it’s interesting that you can,” Hobsbawm says. “You 
can friend your car, and it can send you alerts saying ‘My battery 
needs recharging.’” There are fridge magnets that can re-order 
milk when you’re running low, Philips light bulbs that change 
colour according to instructions from a user’s smartphone and 
indicators that alert a householder –or farmer –that plants or 
crops need watering. it’s conceivable that a washing machine 
would be able to recommend a trusted local tradesperson–and 
even book an appointment –when it needs repairing. Budweiser 
have developed a novelty branded light that, once it has been 
told which team your support, launches into a celebration 
whenever your team scores. 
RESEARCH WORLD | September 2014 33 
We search online for gift ideas, tradespeople, news 
and entertainment, but what if you could Google a 
parking space and your possessions could talk to 
each other? 
The connections that have linked people and businesses 
through their computers and phones are about to precipitate the 
next industrial revolution, one no less significant than the 
invention of rail travel and electricity. andy Hobsbawm, founder 
and chief marketing officer of software company Evrythng, says 
the nascent “internet of things” is a game-changer for individuals, 
businesses and governments, as everyday objects from parking 
meters and thermostats to medicines and clothing connect to the 
internet via sensors or computer chips. 
By 2015, Hobsbawm predicts that one trillion devices will be 
connected to the internet, billions of them not computers or 
smartphones but ‘things.’ “now is the coming dawn of when 
things start to become connected, from the chairs you sit on to 
the streets, the buildings and potentially even smart dust in the 
air,” he says. “There are a lot of ‘things’ in the world, and for 
them to start becoming connected has got to be quite significant, 
even if we don’t know exactly how it’s going to play out. it’s a 
very big, disruptive shift.” 
We’re already familiar with the beginnings of the internet of 
things. near-field communication enables physical things like 
london’s oyster cards, which can be used for payment across the 
travel network, to feed massive amounts of data about passenger 
patterns to data analysts who can work out how best to manage 
traffic flows. The same kind of tracking could be used to manage 
container ships and other ways of moving. 
ThE BUSiNESS MoDEL 
But it’s not just new connections; new business models are 
emerging from the internet of things as well. Rolls-Royce, for 
instance, is able to proved jet engines on a subscription-style
34 RESEARCH WORLD | September 2014 
consumer products sold every year – smart tags that can trigger 
the launch of information or links via a smartphone are entirely 
plausible, Hobsbawm says. an object could, therefore, “tell” its 
new owner how it was made or provide links to warranties, 
instruction manuals and ongoing suggestions for use. 
“What we’re trying to do is connect people to brands via 
physical things,” he says. The new owner of a guitar, for instance, 
might “claim” it online through a QR code on the item or a near-field 
communication tag, and that online connection could trigger 
tailored experiences. a discount at your nearest music shop could 
be offered; you could receive music playlists if you like a certain 
style of music; you might receive a suggestion to invest in heavier 
strings, links to musicians nearby looking for a guitarist for their 
band or even a discount on a British airways flight to nashville 
because the guitar “knows” you’ve been listening to a lot of 
Johnny Cash. The guitar manufacturer goes from knowing 
nothing about purchasers to having an ongoing relationship with 
them. 
other brand experiences could be triggered by, say, a sudden 
change in the temperature where the user of a product lives or 
the national football team making the World Cup finals. a 
particular book could become a digital pass to a literary festival, 
and a drinks brand might send a limousine for your ride home 
one night because it knows it’s your birthday. a motorist might be 
able to follow parking spaces on Twitter and know when they’re 
vacant, and a cereal packet that might normally include a plastic 
toy for children might instead provide points on Candy Crush. 
diageo has done a Father’s day promotion in which a 
personalised film could be digitally attached to bottles bought as 
gifts, with a CRM opt-in for both giver and recipient. 
The skills required for a marketing world that’s more about 
personalisation than a broadcast blast are an extension, 
Hobsbawm says, of those that have always been at the heart of 
marketing. “in a sense, modern marketing is deeply powered by 
technology at all levels. if you look at what exists in a CMo’s stack 
of systems, it’s becoming unbelievably sophisticated. What i’ve 
talked about is an extension of that, even if it’s a dramatic 
amplification. That would suggest that anybody who’s in 
marketing, unless they’re fluent in technology and they’re 
understanding that world and thinking of technology-powered 
marketing as marketing, then they’re going to run into problems. 
The world is networked. all marketing is a way of understanding 
the world in order to connect buyers and sellers, so if you don’t 
understand the world, you’re in trouble.” 
iNfoRMiNG DESiGN 
There is some risk that if objects and brands are doing their own 
data collection and informing communications, researchers are 
made, to some extent, redundant. But actually convincing 
consumers to connect up their many things and be honest about 
the information they supply is where a new role for research 
emerges, Hobsbawm says. 
“The research industry is in a very interesting place, because 
the more data there is, the more potential insight there is. in a 
petabyte age, where you can turn on features for, say, three 
million people and just see what they do, i think that does put 
“These things can be combined in interesting ways. disney 
came up with a storybook application on a tablet that can be 
synched with your Philips light, so if you’re reading a kid’s story 
on the iPad, the lighting will change according to the narrative. 
So you can start to see ways that all this creativity creates new 
opportunities, because it’s all part of a system, and i think we’re 
only just starting to scratch the surface.” often, the applications 
of these types of advances are not immediately evident, but 
Hobsbawm says that’s no reason to dismiss them: “They have 
ways of becoming useful in ways you can’t imagine.” 
BRAvE NEw woRLD of MARkETiNG 
This all throws brand marketing into a new light, because when 
objects become connected, their digital lives can change the 
physical products, too. Take nike running shoes connected to the 
FuelBand system. “The shoe is actually a social, connected data 
service that connects you to friends. it tracks your runs, it gives 
you access to a community, and if you compared two nike shoes 
the same size and design, they’re in fact completely different, 
because your shoe has a data footprint different to mine,” 
Hobsbawm says. “What that means for me is that to suddenly 
switch shoes is as painful as it is to switch from amazon to 
another e-commerce provider that doesn’t have all of my history 
and my credit card and wishlist and so on. So the ability to 
personalise objects –and for them to understand your history and 
use it– is quite a powerful way to bind people to them. We’re 
moving to a time where objects are dynamic and adjust 
themselves to your preferences. Things are going to change, and 
therefore the way they’re marketed is going to change as well.” 
as Stefan olander, VP of digital sport with nike, has said, 
once a brand has established a direct relationship with a 
consumer, the brand doesn’t need to advertise to them. 
While it would be prohibitively expensive to computer-chip 
every single object consumers buy – there are 3.3 trillion
“Convincing consumers to connect up their 
many things and be honest about the 
information they supply is where a new role 
for research emerges.” Copyright Market Research Society – MRS 
RESEARCH WORLD | September 2014 35 
pressure on pre-existing techniques which are more slow moving. 
The question for the research industry would be how fluent they 
become with managing the analytics of big data–blending these 
enormous data sets and predictive algorithms –as well as more of 
the qualitative and psychological research. if the research industry 
really embraces the big data analytics as well as all of the 
traditional skills, then it’s in a really good place.” 
Helping brands understand how consumers relate to the 
internet of things would be a vital service. “What is it that people 
actually want is where marketing and research comes in,” he says. 
“How you create the right propositions needs deep insights. do 
people want to be alerted when the burglar alarm has gone off? 
i would think yes, because it’s a situation where you want to take 
some action and you want to alert the police as well. do you 
want to be alerted when the washing machine’s finished its load? 
Possibly. These are all just proposition questions about how you 
design the service. The nuance of how you design the service is 
the experience. But whether or not people want to be alerted of 
that, you need to research it and ask them.” 
Andy hobsbawm 
is founder and chief marketing officer of software company Evrythng
36 RESEARCH WORLD | September 2014
RESEARCH WORLD | September 2014 37
RESEARCH IN BuSINESS 
STEpHEn pHiLLipS 
THE FuTuRE OF 
MARKET RESEARCH 
Full-service-self-serve research 
as we all know, our industry has changed radically in the last 20 years. 
38 RESEARCH WORLD | September 2014 
ThE MARkET RESEARCh 
vALUE CURvE 
our chief technology officer recently gave 
a presentation at the iieX conference, 
delivering a great illustration of the failings 
of the traditional market research business 
model. We can all think of projects that 
have dragged on, squeezing the profit 
margin with every day spent drilling into 
the data. The traditional market research 
value curve has a steep initial climb, where 
research agencies spend their time under - 
standing a client’s issues and applying their 
consultative frameworks. data collection 
can be swift, and though coding question - 
naires can take some time, it’s when we 
move into processing, analysis and 
reporting that the profit we deliver drops 
significantly. Junior research executives are 
relied upon to review the data and deliver 
insight, simply because it’s not economi - 
cally viable to have consultants poring over 
every table. data processing and analysis 
often takes several weeks, and a whole 
team is occupied with making sure that the 
data is clean–and manipulating it when 
necessary. This process squeezes the real 
value, the delivery of strategic insight, 
which is rushed to meet with tight dead - 
lines and already overflowing timesheets. 
in the new world of research that we 
envisage, the value curve is radically 
different. Expert resources have been 
deployed in the design of the project 
customers at the heart of business? 
absolutely. do we need to evolve and 
adapt to this new world? of course. 
Join me, if you will, and imagine what 
the insight world will look like in five 
years’ time. 
What was once our bread and butter is 
increasingly at risk from new approaches, 
in many cases approaches which fit better 
with the pace and demands of modern 
business. in five years, the insight 
professionals who will have profited and 
succeeded in this new world will have 
been those who have managed to convey, 
package and deliver their expertise free of 
the constraints of traditional market 
research. data checking and processing, 
laborious survey scripting, charting and 
aligning PowerPoint presentations: all of 
these will become programmatic, 
handled by machines. our future lies in 
adding value, using our knowledge and 
expertise to consult and design, to 
analyse and put trends in context. 
The process of market research will be 
squeezed and dismantled, and people 
delivering insight will become increasingly 
skilled consultants, aided by machines. 
as a wise speaker at a conference 
i recently attended quipped, we are 
looking at a “technology revolution and a 
consultancy evolution.” i can find no 
better words to sum up how i see the 
future of our industry. 
From the shift from CaTi to online 
surveys in the 90s to the 
emergence of mobile, big data 
and insight communities in the 00s, 
innovation in research technology has 
consistently given us the tools to position 
customer insight at the heart of modern 
business. 
in recent years, however, the pace of 
change has been accelerating rapidly. 
Computing is advancing faster than ever 
before. Coding languages such as Ruby 
on Rails and cloud technology like 
amazon’s EC2 have democratised 
technology, allowing entrepreneurs with a 
vision to quickly develop an idea into a 
robust, scalable digital business. in this 
context, business ideas are exploited with 
increasing ease, and new ways of 
collecting, understanding and 
disseminating customer data are 
emerging all the time. our clients are also 
moving faster than ever, and where they 
were previously content to wait weeks or 
months for insight, they are now used to 
waiting minutes, calling on big data 
platforms or social media queries to 
inform their decision making instead of 
conventional survey data. 
Where does it leave us, you might ask, 
the stalwart research industry with our rich 
heritage and wealth of experience in 
understanding people? do we still have 
an indispensable voice in keeping
RESEARCH WORLD | September 2014 39 
Pawel Kuczynski
40 RESEARCH WORLD | September 2014 
enterprises, companies which couldn’t 
previously afford the premium that great 
research delivery often demands. Think, for 
example, of a marketing manager for a mid-sized 
brand, someone who might have an 
annual budget of uS $200,000 for 
marketing and perhaps uS $15,000 for 
research. Most research agencies would 
struggle to deliver real value for that 
amount, and, though we might not want to 
admit it, many would want to avoid that 
sort of client –often demanding and with 
comparatively shallow pockets. With full-service- 
self-serve tools, that client can now 
run up to ten projects in a year, testing 
creative campaigns, understanding brand 
drivers, filtering taglines, exploring social 
media and running online focus groups – in 
essence, a full, agile, slim-line research pro - 
gramme delivered to an affordable budget. 
ultimately, we are convinced there are 
benefits for all in the way that insight 
delivery is changing. it’s a brave new world, 
and not everyone will jump in head-first. 
However, it is a very brave agency which 
decides to ignore the trends and chal - 
lenges in their entirety. This is agile, it’s 
the future, and we are proud to be a part 
of it. 
ting to their thinking with innovative 
software features that our application 
affords. Forward-thinking people in those 
companies share our goal: to add value 
through design and great thinking rather 
than process. of course, there have been 
questions around cannibalisation, 
particularly with high-value assets such as 
the ConversionModel and Millward Brown’s 
creative testing being made available at a 
reduced price. However, i would argue that 
the far greater threat comes from diY solu - 
tions and other sources of data managem - 
ent which, if left without response, are 
likely to erode our revenues with increasing 
severity over the next decade. 
it is often all too easy to focus on risk 
without giving enough thought to the 
opportunity that innovation enables. We 
see great potential in the full-service-self-serve 
space to increase research use and, 
in some cases, even increase research 
spend overall. We envisage an agile world 
in which consumer insight is affordable and 
accessible enough to be deployed 
frequently and iteratively, in which, for 
example, brand managers can inject the 
consumer voice at every stage of the 
creative development process instead of 
relying on one or two potentially lengthy 
and expensive research projects. Full-service- 
self-serve makes this method of 
working viable. Certainly our experience is 
that, once businesses adopt this approach, 
the benefits they reap easily validate their 
risk, keeping the customer at the heart of 
the development process while 
maintaining an emphasis on delivering 
even more great quality insight. 
By cutting down on process, and 
consequently cost, we are also opening up 
expert insight to small- and medium-sized 
before it has even begun. The process is by 
and large programmatic, with some time 
spent on customisation, and the value that 
researchers provide increases towards the 
end of the project: spending their time 
consulting and having meaningful 
conversations, and charging clients for their 
time accordingly. We are clearly still in the 
early days, but our experiences with our 
partners suggest that this is more than just 
speculative musing. They are seeing the 
early stages of a step-change in their 
relationship with clients, and it is exciting. 
iNTELLiGENT AUToMATioN 
The really exciting change is that the reach 
of technology won’t stop with process; 
software is getting much smarter. We invest 
a lot of our time experimenting with 
automation, and even analysis is on our 
radar. By employing senior consultants to 
craft strategic, category and even brand-specific 
analysis text, then linking that text 
to changes and permutations in data, we 
can manage insight-generation with the 
click of a button. There are some 
limitations to this technology – that’s where 
researchers step in to give context–but we 
are constantly striving to improve it. 
Whatever you may think, the stake is in the 
ground, and the challenge to the industry 
has been set: evolve, or watch your market 
share cede to new innovations. 
our vision for an agile, consultancy-driven, 
technology-enabled research world 
is validated by the increasing number of 
entrants to the ‘full-service-self-serve’ 
space. as but one example, at ZappiStore, 
we have partnered with forward-thinking 
companies such as Millward Brown, TnS 
and MMR to deliver their iP onto our 
automated self-service platform, contribu - 
Stephen Phillips 
is CEO at ZappiStore in the uK 
Value/Prot 
Time T 
Full service MR 
offering adds 
signicant value to 
client by spending 
time understanding 
their company and 
problem 
Data gathering still 
protable (Survey 
Monkey EBITDA 
53.9%) 
Reliance on execs having to 
nd the story every single 
time undermines 
standardisation and quality 
Signicant time spent on 
data manipulation and 
hygienic factors before any 
true value can be added 
Data structures dened 
early in process with limited 
manipulation €exibility leads 
to high rework costs 
Manual interventions to 
produce usable information 
from source data increases 
costs signicantly 
Strategic insights 
deliverd under 
time and cost 
pressure, if at all 
Study 
design 
Data 
collection 
Data 
cleaning 
Mistakes Fiddle 
with pptx 
Headline insights 
and strategic 
next steps 
Stare at tables 
looking for the 
story 
Value/Prot 
Time 
ZappiStore process 
by automating study 
design and data 
collection 
Data processing and 
reporting delivered in 
real time via expert-led 
automated data 
platform – building the 
story behind the data 
Researchers focused on 
exploring the story to 
create actionable 
outcomes for the client 
Beginning of a true 
enriched dialogue with 
each client that focuses 
on future steps 
Study 
design 
Data 
collection 
Headline insights and 
strategic next steps 
What next? 
Graph 1. Traditional market research model Graph 2. New world research value curve
RESEARCH WORLD | September 2014 41
42 RESEARCH WORLD | September 2014
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44 RESEARCH WORLD | September 2014
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46 RESEARCH WORLD | September 2014
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ESOMAR gLOBAL RESEARCH 
JO BOWmAn 
Turning the corner 
A brightening outlook 
Returning confidence and increasing investment in north america have helped counter 
the effects of slowing growth in the world’s biggest emerging economies in 2013. 
48 RESEARCH WORLD | September 2014
Graph 1. Global market research turnover 2013 US $ 40,287 million 
such a small base that these markets continue to have little 
impact on the overall performance of the region. Bangladesh 
grew at more than 28% in 2013, but it remains less than one 
one-hundredth the size of the Chinese market. The region’s net 
growth was 1.6%. 
• The two biggest markets in latin america both saw declines in 
market research turnover in 2013: Brazil by 2.8% and Mexico by 
5.9%. Brazil’s dip can be somewhat attributed to the fact that, 
in the previous year, there was a surge in demand for research 
ahead of the hotly contested municipal elections, while in 
Mexico the lull follows a cooling of the broader economy. 
argentina and Peru were the stand-out growth markets in the 
region, posting 19.7% and 15.5% growth respectively, although 
in Peru, the lower costs of digital research compared to other 
methods is leading some clients to move their research in-house, 
hurting agency revenues. net growth for the region was 
-0.1%. 
•While absolute earnings volume in local currencies was up in 
africa, the effect of exchange rate changes versus the uS dollar 
and high inflation– surpassing 16% in East africa in 
2013– meant the region ultimately had a net decline in inflation-adjusted 
revenue of 1.2%. The region’s biggest market, South 
africa, enjoyed growth in digital research and served a growing 
number of domestic clients looking to expand across the 
region, but it struggled with a growing number of clients 
seeking ad hoc work rather than contracts, smaller client 
budgets and a shortage of trained staff; it saw a net loss of 
2.0%. Meanwhile, West africa (up 7.3%) and nigeria (up 5.3%) 
were buoyant. 
• in the Middle East, a slowing decline in 2013 represented an 
improvement over the sharp drop-offs in 2012. net growth was 
-1.2% for the region. lebanon was the star of the show, posting 
RESEARCH WORLD | September 2014 49 
ESoMaR’s annual report on the state of the market 
research industry shows that north america’s recovery 
from recession helped world research turnover rise 0.7% 
in 2013 to uS $40.3 billion. This is the same overall 
growth rate the industry saw a year earlier, but then it was latin 
america and asia-Pacific that were buoying the industry. This 
year’s Global Market Research report, to be launched at the 
ESoMaR Congress in nice on 8 September, suggests that 2013 
was a year of transition: there is strong optimism that 2014 will be 
a more prosperous year for the industry, with forecasts predicting 
the highest levels of growth for some years (and significantly 
higher than a year ago). 
The GMR report ventures beyond regional averages to give 
an overview of the market; it looks at how the industry has been 
tackling the challenges it faces in different market sectors and 
how it is expanding into new areas, growing its value as an 
essential service to business (often helped by technology that 
once looked like it might threaten the sector’s very existence). 
ToP-LiNE fiNDiNGS 
Europe continued to account for 40% of global research turnover, 
despite none of the Eu-15 countries making it onto the list of the 
ten fastest-growing markets in the region. north america grew its 
share by two percentage points to 39% of the total; its gain was 
asia-Pacific’s loss. Booms in small, fast-growing asian markets 
failed to make up for slowing growth in China and Japan (after 
adjustment for inflation). Highlights of this year’s GMR report 
include: 
• Market research turnover increased in 49 countries or sub-regions 
in 2013 and declined in 40 (after adjustment for 
inflation). 
• in north america, the uS grew by 2.7% in the year, tracking 
steady improvement in the national economy. Growth in 
revenue from survey research slowed to less than 1%, but 
qualitative enjoyed a strong recovery, as did syndicated 
research and media research. Research turnover in Canada is 
only a fraction of that in the uS, but growth there of 7.4% 
helped lift revenue for the region as a whole by 2.9%. 
• ukraine was the fastest growing market in Europe for the 
second year running (8.2% net growth in 2013), followed by 
Russia (5.8%), most likely driven by strong performances in the 
first three quarters of the year (before tensions over Crimea and 
eastern ukraine flared up). France (0.1% growth), the 
netherlands (0.6%), denmark (0.4%) and luxembourg (2.0%) 
were the only markets in the Eu-15 to stay in positive territory, 
with Portugal (down 22%) the hardest hit by general economic 
hardship. Bulgaria (5.3% growth) was the best performer 
among new Eu member states. Cyprus, the smallest research 
market among the new members, saw revenues plummet by 
over a third. overall, European net growth was -1.4%. 
• in asia-Pacific, the largest market, Japan, showed sluggish 
growth of just 0.5% (after adjustment for inflation) and China, 
which now has turnover approaching that of Japan, showed 
slower growth in 2013 (4.4% as compared to more than 11% a 
year earlier). Myanmar, Bangladesh, Cambodia and laos grew 
at a tremendous pace (50% in the case of Myanmar), but from 
Middle East 
$ 277; 1% 
W 
Africa 
$ 382; 1% 
Latin America 
$ 1,920; 5% 
Asia Paci!c 
$ 5,998; 15% (-1) 
North America 
$ 15,705; 39% (+2) 
Europe 
$16,005; 40% 
ESoMaR estimates. Rounded figures presented. Brackets show percentage point 
changes in market share compared to 2012.
50 RESEARCH WORLD | September 2014 
Graph 2. Net growth rate 2013 (adjusted for inflation) 
Exchange rate fluctuations eliminated. iMF inflation rates used to determine net growth. 
coming from expansion in the healthcare, technology, financial 
services and fashion sectors. 
“as africans are very conscious of status, even in rural areas 
you’ll find some of the latest Samsung phones and iPhones; 
they’re very keen to purchase products that express who they are. 
We probably have more German cars than they have in 
Germany,” Falala says. as people move up the socio-economic 
ladder, they look to express themselves in new ways, so there’s 
growing demand for cultural experiences such as theatre, dance 
and dining out. 
Globally, the manufacturing sector is still the biggest 
consumer of market research, followed by media businesses and 
financial services. 
despite the overall lacklustre growth in the global market 
research industry in 2013, there’s confidence that business is on 
the up. a far larger majority of respondents to the GMR 
questionnaire than in recent years is predicting better times in 
2014: 82% said they expected growth (compared to 60% a year 
ago); 9% expect an industry decline in revenues (an improvement 
record net gains of 38.9% due to rising demand for research 
and the launch of the GfK MRME TaM panel. The Gulf 
Cooperation Council countries –Bahrain, Kuwait, oman, Qatar, 
Saudi arabia and the uaE–together are the biggest market in 
the region and grew 4.4% in 2013. Continuing instability in the 
region affected the industry in other countries. israel saw a 
1.5% net decline, Egypt’s market dipped 8%, iran dropped 
11.2% and iraq was down 45.5%. 
ThE NEw NoRMAL 
The biggest markets for research remained unchanged from 
2012: the uS stayed at the top of the league and in 2013 
accounted for 37% of revenue (followed by the uK, Germany, 
France and Japan). These five markets together represented 
70 per cent of the industry’s global takings. 
Yet it is apparent that business confidence has yet to return in 
these markets to the levels that existed before the 2009 
economic crisis. “We’re operating in a world which is growing at 
a much slower pace than before the financial crisis, not just in the 
developed world but also in developing markets,” says ipsos 
founder and co-president didier Truchot. “The corporate world 
has become very risk averse,” he says. “innovation is being used 
to streamline a business rather than as leverage for growth. The 
taste for adventure just isn’t there.” 
developing markets still present the strongest influence on 
growth in demand for research, though the large BRiC markets 
are less significant than they were a few years ago, and smaller, 
fast-growing emerging economies are where much of the client 
appetite is shifting. at the same time, the rise of technology-based 
companies is putting into sharp focus the true importance 
of brand and reputation, along with the potential for technology 
to disrupt not just tech-focused industry fields but also financial 
services, retail and media. 
“What’s most exciting is seeing the market research industry 
revitalised by new thinking, doing what we always used to 
do– taking the best of the new scientific thinking and technology 
and adopting it into practice,” says GfK global training director 
Phyllis Macfarlane. 
latin america is one of the regions presenting strong 
opportunities for future growth, as local and international 
businesses seek to understand the newly affluent–and those on 
lower incomes whose spending power is slowly rising. 
Sarah Boumphrey is head of countries and consumers 
research at Euromonitor; she says the region’s increasing 
economic stability, young population and proximity to the uS are 
helping growth. “There are more than 87 million middle-class 
homes with household incomes between uS $10,000 and uS 
$45,000,” she says. “Engaging with these consumers early on can 
produce long-term benefits. These consumers, once won, can be 
transferred up the value chain from the initial low-priced 
purchases to high-margin products and services.” 
africa, too, is a collection of markets in which much remains 
to be understood about consumers and their fast-evolving 
preferences and priorities. Sifiso Falala, CEo of Plus 94 Research, 
says businesses are aware of the risks of working in volatile 
markets but have confidence that things are on the up. Growth is 
World 
Europe 
North America 
Asia Paci!c 
Latin America 
Africa 
Middle East 
0,7% 
-1,4% 
2,9% 
1,6% 
-0,1% 
-1,2% 
-1,2% 
Globally, the manufacturing sector 
is still the biggest consumer of 
market research, followed by media 
businesses and financial services.
RESEARCH WORLD | September 2014 51 
Graph 3. five largest markets –Market share 2013 (US$ millions) 
Japan 
$ 1,843; 5% (-1) 
over last year’s 19%); 9% expect no change (versus 21% the 
previous year). 
CLiCk AND CoLLECT 
Technology continues to change the way that researchers carry 
out their work, and it continues to lower the barriers to entry for 
new kinds of service providers that are generating business 
insights. The highest proportion of work being done online is in 
Japan, where, in 2013, 46% of turnover came from online (up 
from 40% in 2012). Bulgaria, a huge centre for outsourced 
research, is the second-biggest online market (43% of the total is 
online), followed by Sweden and Canada (both 38%), with the 
netherlands rounding out the top five (36% of research is online). 
The rise of big data–and a falling out of favour of the term 
‘big data’ –has led to misunderstandings about what can and 
what can’t be achieved with it. “as more people get their hands 
on big data, they’ll see that, while you can now potentially prove 
something that you had a hard time doing with traditional market 
research,” says Google research manager Thomas Park. “But it 
doesn’t pop out automatically. it’s really, really hard work to make 
sense of that data.” 
nick nyhan, digital coordinator and strategist for Kantar, says 
the ‘making sense’ aspect of research is where the future of the 
industry really lies; he thinks much of the meaning of real-time 
data only comes from putting it into context –and often the 
context of many years of other research. “That means that the 
critical skills in the market research industry are more in demand 
than they were before. it’s just that there’s more competition.” 
The expansion and diversification of the research industry is 
something that newcomers to the business say should be 
promoted at universities, where the range of opportunities that a 
research career can offer is still poorly understood. “Today’s 
books and courses don’t even talk about online research or 
qualitative research, so the perception that’s perpetuated is one 
Jo Bowman 
is an independent journalist based in the uK 
Rest of the world 
$ 12,242; 30% (+1) 
France 
$ 2,679; 7% 
USA 
$ 14,991; 37% (+2) 
Germany 
$ 3,468; 9% (+1) 
United Kingdom 
$ 5,065; 13% 
Other 
16% (+1) 
Manufacturing 
Wholesale and retail 44% (-2) 
5% (-1) 
Telecommunications 
6% (+1) 
Financial services 
6% 
Public sector 
9% 
Media 
14% (+1) 
Graph 4. Sources of research turnover 2013 (%) 
that’s far from reality –paper-and-pen research, and calling 
people up and doing surveys,” says Tanmay dhall, a qual 
research consultant with TnS in dubai and board member of 
Fringe Factory. Private-sector marketing and research 
programmes, such as those run by Coca-Cola and nielsen, are 
helping shed light on what the industry is really about, and some 
smaller agencies are becoming active at the university ‘milk 
rounds’ as they seek to attract sharp, talented graduates. dhall 
says young people’s perceptions of research are slowly changing: 
“There’s young blood in the industry which wants change and is 
working for it. if we can communicate the variety of career 
opportunities available, it will help us take a real step 
forward.” 
GLoBAL MARkET RESEARCh 2014 
The only global analysis of market research spend 
an ESoMaR industry Report 
in cooperation with Bdo accountants  advisors 
now in its 26th year, the report includes: 
• Global  regional highlights and five-year trend data on 81 countries 
• Country-level breakdowns of sources of turnover, spend by research 
method, design and project type 
• Expert insights into the changing needs of research clients and agencies 
To see a preview and order the report, please go to 
www.esomar.org/publications. 
GloBal MaRKET RESEaRCH 2014 is free to ESoMaR members in PdF 
format and can be downloaded in the MyESoMaR section of the website.
52 RESEARCH WORLD | September 2014
RESEARCH WORLD | September 2014 53
RESEARCH CHALLENgE 
iSAAC ROgERS 
Doing More with More 
Multi-phase and hybrid studies yield greater depth 
While single-phase consumer engagement still has its place, a new trend in global 
marketing research is the rise of multi-part or hybrid research projects. 
54 RESEARCH WORLD | September 2014
prior feedback and revisit the ideas with 
the same participants who participated in 
the first sessions. 
as researchers, we can often forget 
how unusual the focus group environment 
can be for a respondent. a consumer is 
asked to visit an office in a building they’ve 
likely never entered, sit around a table 
surrounded by a handful of strangers and 
answer questions about products they use 
at home–all while glancing uncomfortably 
at reflections in a giant mirrored wall. While 
an effective moderator can alleviate much 
of this uneasiness, it can still be a tremen - 
dous challenge to develop rapport, present 
brand new concepts or ideas, moderate a 
lively discussion and cover all the primary 
topics in a 60- or 90-minute session. 
Most researchers will quickly admit that 
many, if not most, of their groups could 
benefit from more time in discussion. 
However, by the time the 90 minutes is up, 
some participants are nearing the end of 
their natural attention span, while others 
must return to their lives, jobs and families 
outside of market research. 
RESEARCH WORLD | September 2014 55 
However, we don’t live in a strictly face-to- 
face world anymore. online qualitative 
research platforms afford any researcher a 
multitude of simple-to-use and flexible 
solutions to craft a custom hybrid project 
with relative ease. 
REAChiNG fURThER foR iNSiGhTS 
one key area where hybrid projects 
succeed is their ability to easily carry a 
conversation with consumers over an 
extended period of time. Historically, 
longitudinal qualitative projects were some 
of the most costly and difficult research 
methods. However, today’s digital 
techniques provide a tremendous 
advantage for longer term participant 
engagements. 
one of the most powerful applications 
of hybrid approaches couples a face-to-face 
session with a follow-up online 
discussion days or weeks after the focus 
group. This “debrief” session can often 
yield amazing new insights that weren’t 
captured in the first event. it allows 
researchers to refine concepts based on 
As greater and greater numbers of 
developed and semi-developed 
countries refine their internet 
infrastructures and services, 
digital research technologies are allowing 
more global researchers to engage 
consumers quickly, easily and affordably –at 
a variety of times, in a range of settings and 
long after they’ve left the focus group. 
one of the most effective strategies 
emerging today in global qualitative 
research is the rise of multi-part or hybrid 
research projects. Some researchers have 
found this to be their “secret weapon” for 
achieving the client goal of providing more 
insights, faster, while at the same time 
helping to keep project costs low. 
The basic concept of multi-modal 
research is fairly straightforward: instead of 
relying on a single phase of consumer 
engagement, such as a one- or two-hour 
focus group session, a researcher instead 
engages with the customer two or more 
times in a variety of formats. in the past, 
the concept of continuing the conversation 
after the focus group, or perhaps 
interviewing participants three or four times 
during different periods in their path to 
purchase, might have seemed like an 
impossibility. The cost and logistics of 
reconnecting with consumers in a strictly 
face-to-face world limited our ability to 
engage past a single focus group 
experience. 
“We can often forget how unusual the focus 
group environment can be for a respondent.”
56 RESEARCH WORLD | September 2014 
unique habits. Rather than walking “cold” 
into a one-on-one interview with a stranger, 
the moderator and participant were able to 
continue their existing relationship during 
their first face-to-face chat. The level of 
rapport between them was high, as they’d 
spent the past two weeks engaging and 
getting to know one another in an online 
discussion. This allowed the researcher to 
engage in a frank and honest conversation 
with the participant on a topic that is, for 
some, a sensitive subject. in this case, the 
researcher felt the level of accuracy in the 
digital diary greatly exceeded a typical 
paper journal, and the hybrid approach 
meant a more comfortable discussion with 
the consumers in the face-to-face setting. 
A NEw DAy foR RESEARCh 
There’s a lot of talk in our industry around 
the challenges facing today’s researchers, 
much of it seeming to imply or assume that, 
as a group, we’re somehow unfit for the 
future. it seems some pundits want to 
argue that researchers aren’t up to the task 
and that our industry is forever stuck in the 
past. 
That’s not how i see it. From where i sit, 
i see a new day dawning for research. 
Every day, i see more and more 
researchers rising to action. Practitioners 
across the globe are realising that today’s 
digital tools, coupled with an existing 
mastery of research methods, allow them 
to gaze deeper into the consumer 
experience and uncover fresh new insights. 
With each bespoke project design, i’m 
seeing creativity flourish and renewed 
excitement in our industry. The one-size-fits- 
all mold is breaking, and a new age of 
mixed method, hybrid and truly custom-tailored 
design is upon us. 
participants will be willing and able to be 
contacted–for very little additional effort or 
incentive (typically, participants are paid 
less than 50% additional honoraria for the 
digital debrief). additionally, the cost of an 
online webcam group or bulletin board 
discussion is generally a small fraction of 
the overall project cost. 
CoNTExTUALiSiNG ThE PATh 
To PURChASE 
Hybrid qualitative methodologies are 
gaining traction as a way to develop an 
immersive understanding of the consumer 
path to purchase and a more direct 
mechanism to study real-world habits and 
practices. 
in the past, qualitative researchers 
struggled to adequately capture a broad 
consumer experience. Traditional single-phase 
research often consisted of a single 
interview or focus group in which the 
participants recounted a decision-making 
or buying process based largely on 
individual recall. Realising the 
shortcomings of relying on accurate 
depictions from consumer memory, 
qualitative researchers often relied on the 
paper diary or journal method to more 
adequately capture these events. 
But what happens when a researcher 
replaces that paper diary with a digital 
tool? Take, for example, a recent project in 
Southeast asia, in which the paper diary 
was replaced with a mobile-enabled 
qualitative discussion. For two weeks, 30 
consumers documented each alcoholic 
beverage they purchased or consumed via 
a smartphone app, submitting hundreds of 
photos and videos that captured their 
purchase and consumption patterns. 
during that two-week data-gathering 
phase, participants could also log on to an 
online conversation in which the moderator 
created a rich dialogue about alcohol 
trends. 
after the two-week mobile data 
gathering phase, the consumers were 
invited to a mix of face-to-face sessions 
and online individual webcam interviews 
(depending on their proximity to a central 
facility). The moderator used the 
consumers’ individually generated content 
and their actual usage photos, videos and 
diaries to develop a custom-tailored 
conversation based on each individual’s 
This is where the debrief online session 
comes in. instead of bidding farewell to 
these respondents forever, you can instead 
enrol them in a three-day online bulletin-board 
discussion or invite them to a 
webcam group a few days or weeks after 
the focus group. You are provided an 
opportunity to hear from the consumers 
after the ideas presented in the groups 
have gestated. Researchers tell countless 
stories of product concepts that just didn’t 
get traction in the groups –yet after a few 
days’ thought, many participants begin to 
see benefits (or concerns) they hadn’t 
formulated during the short time in the 
focus group. 
The debrief sessions are a perfect 
opportunity to revisit key discussion topics 
that might have been short-changed in the 
live sessions. in effect, you are given a 
second chance to engage with these 
respondents and cover content that was 
skipped–or perhaps content that didn’t 
even exist–at the time of the first phase. 
How many times have you left a project 
wishing you could go back and ask each 
respondent a few more questions? How 
many times has your client come to you 
wanting to keep the respondents in the 
group just a few minutes longer? if you’re 
like most researchers, this is a frequent 
occurrence. 
The ease of joining one of these digital 
conversations means that most, if not all, 
isaac Rogers 
is chief innovation officer for 20|20 Research in the 
uSA
RESEARCH WORLD | September 2014 57
58 RESEARCH WORLD | September 2014
RESEARCH WORLD | September 2014 59
60 RESEARCH WORLD | September 2014 
Marco Jeurissen
gLOBAL MARKET RESEARCH 
LAuREnCE n. gOLD 

 
 



’  
  
The world’s largest 25 marketing research firms experienced modest revenue growth 
in 2013, driven by syndicated services firms and held in check by changing currency 
exchange rates and flat revenue per employee. 
fEw fiRMS DRivE GRowTh 
What drove growth this year? Seven all or mostly syndicated 
firms –nielsen (including its acquisition arbitron), iMS, iRi, nPd, 
comScore, J.d. Power and Video Research–accounted for 58% 
of Top-25 revenues and had a combined growth rate of 4.1%. 
The balance of 18 firms grew by 2.5%, just above the 1.7% 
inflation rate. So syndicated firms primarily drove growth this 
year, supported by their long-term contracts. However, the 
differences are quite modest. 
not all Top-25 firms shared in the overall gain: 14 firms on 
this year’s list grew faster than inflation, the same number as last 
year, including just three that grew by double digits. of the 11 
remaining, eight experienced actual revenue declines. 
in the past, smaller firms typically grew faster than larger 
firms, and this is true for 2013 as well. among the five top firms, 
Table 1: year-to-year Revenue Growth of Top-25 Research firms 
Currency Effects/After WW 
generic* + mA’s = Total inflation 
2013 3.4% -0.1% 3.3% 2.0% 
2012 2.6 NC 2.6 0.5 
2011 4.1 1.6 5.7 3.0 
2010 4.9 1.1 6.0 4.3 
2009 -3.1 2.5 -0.6 -2.0 
2008 3.9 2.9 6.8 3.5 
2007 7.7 1.4 9.1 6.1 
2006 5.1 3.5 8.6 6.4 
2005 5.4 4.5 9.9 7.4 
2004 4.8 1.1 5.9 3.4 
* Generic excludes MAs (acquisitions or divestitures) and currency effects. 
Note: Growth rates based on home country currencies. 
RESEARCH WORLD | September 2014 61 
Total growth of the Top 25 improved slightly over the 
prior year, up 3.3% in 2013 (vs. 2.6% in 2012), but 
remained well below the previous two years (at about 6% 
each, following recovery from the worldwide recession) 
as shown in Table 1. after adjusting for inflation, growth was 
reduced to 2.0% and 0.5% for 2013 and 2012 respectively, 
which together represents about a third of the growth of the 
prior two years combined. 
To understand why this happened, look to wide swings in 
currency exchange rates versus the dollar over the last two years. 
For example, the Japanese yen jumped nearly 24% and the 
Brazilean real increased over 10% compared to the dollar in 
2013. Conversely, the euro dropped over 9% and the British 
pound declined nearly 2% versus the dollar in 2012. These 
swings, when netted out, served to depress the Top-25 firms’ 
total growth rate over the past two years. 
Mergers and acquisitions contributed as well, but much less 
than in the years 2005–2009, which showed total growth of 
nearly 10% per year. at the same time, currency fluctuations 
during those earlier years had much less effect than in the past 
two years. Still, Mas’ contribution to total growth was 
cancelled out by the negative effect of currency exchange rate 
changes. 
Generic growth, which strips away the effects of both 
currency fluctuations and Mas, reveals the underlying basic 
business direction of the Top 25. its growth for the last two years 
mirrors total growth but is less than years prior to 2012 when, 
with some exceptions, generic growth averaged 4% to over 5%. 
This current weakness reflects continued conservative 
research spending by corporate buyers caused by worldwide 
economic conditions: the slow recovery of the uS economy, a 
European economy mired in recession with continuing debt and 
banking problems, and slowing economies in asia Pacific 
markets.
62 RESEARCH WORLD | September 2014 
with economic conditions in both Europe and the uS but 
nevertheless retained its 2nd place ranking. iMS is now reporting 
full-firm revenues, as revealed by its new listing on the nYSE, and 
moved to 3rd place. as a result, ipsos fell to 4th place and GfK to 
5th place, each growing by less than 1%. 
iRi retained its 6th-place ranking, after moving up two places 
in 2012 with last year’s large organic growth. Westat, which 
experienced a 17% growth rate after being flat last year, moved 
up to 7th place with a large revenue gain. dunnhumby returned 
to the list this year with an 8th-place ranking, while inTaGE 
dropped two ranks to 9th due to large yen-to-dollar exchange 
rate changes. nPd held its 10th-place ranking. 
those with revenues over uS $1 billion each, revenues increased 
3.0% organically (vs. 2.3% for the same firms last year). The 
balance of 20 smaller firms grew at 4.9% (compared with 4.3% a 
year ago). 
ToP 25 RANkiNG ChANGES 
Change in the rankings of Top-25 firms is a constant from year to 
year, and 2013 is no exception. 
among the 10 firms at the top of the rankings, nielsen once 
again kept hold on 1st place–a status unchanged since the list 
was first compiled–and accounted for 28% of the list’s revenues. 
Kantar, whose revenue increased 1.6%, continues to grapple 
Table 2: 2013 Top 25 Global Research organizations 
Organization Headquarters parent Research- global percent Revenues From Outside 
Country Only Research Change 
Full-time Revenues2 from Home Country 
Employees1 (uS$ millions) 20123 (uS$ in millions) Home Country 
Nielsen Holdings New York  Netherlands USA 36.700 $6.045,0 4,0% $2.850,4 47,2% 
Nielsen Holdings New York  Netherlands USA 35.400 5.569,0 3,9 2.844,2 51,1 
Arbitron Columbia, Va. USA 1.300 476,0 5,8 6,2 1,3 
Kantar* London  Fairfield, Conn. U.K. 22.800 3.389,2 1,6 2.436,6 71,9 
IMS Health Danbury, Conn, USA 10.000 2.544,0 6,1 1.609,0 63,2 
Ipsos Paris France 15.536 2.274,2 0,8 2.116,9 93,1 
GfK Nuremberg Germany 12.904 1.985,2 0,8 1.389,6 70,0 
Information Resources Chicago USA 4.635 845,1 4,1 341,4 40,4 
Westat Rockville, Md. USA 2.044 582,5 17,0 18,8 3,2 
dunnhumby London U.K. 715 453,7 8,8 347,0 76,5 
INTAGE Holdings** Tokyo Japan 2.527 435,5 6,5 24,2 5,6 
The NPD Group Port Washington, N.Y. USA 1.282 287,7 5,4 85,4 29,7 
comScore Reston, Va. USA 1.166 286,9 15,7 84,1 29,3 
J.D. Power and Associates* Westlake Village, Calif. USA 738 258,3 2,5 85,4 33,1 
IBOPE Group Sao Paulo Brazil 3.296 231,1 3,4 51,7 22,4 
ICF International Fairfax, Va. USA 908 225,3 -6,0 53,3 23,7 
Video Research** Tokyo Japan 414 204,0 -0,3 
Symphony Health Solutions Horsham, Penn. USA 548 198,7 -1,3 2,2 1,1 
Macromill Tokyo Japan 864 184,7 10,6 20,1 10,9 
Maritz Research Fenton, Mo. USA 757 177,6 -6,0 38,7 21,8 
Abt SRBI Cambridge, Mass. USA 1.138 172,8 -1,6 17,1 9,9 
Decision Resources Group Burlington, Mass. USA 625 150,3 4,2 42,2 28,1 
Harris Interactive New York USA 542 139,7 -0,7 53,6 38,4 
ORC International Princeton, N.J. USA 494 122,0 -0,8 40,1 32,9 
Mediametrie Paris France 705 106,1 2,0 14,9 14,0 
You Gov London U.K. 524 101,4 6,0 71,3 70,3 
Lieberman Research Worldwide Los Angeles USA 412 100,3 -1,5 32,3 32,2 
Total 122.301 $21.501,3 3,4% $11.826,3 55,0% 
* Estimated. 
** For fiscal year ending March 2014. 
1 Includes some non-research employees 
2 Total revenues that include non-research activities for some companies are significantly higher. 
3 Rate of growth from year to year has been adjusted so as not to include revenue gains or losses from acquisitions or divestitures. 
Rate of growth is based on home country currency and excludes currency exchange effects and MAs.
• ownership is more concentrated. This is primarily a 
consequence of amalgamation, the end result of hundreds of 
acquisitions made over many years in many countries. Eight 
firms, accounting for most of the Top-25 revenues, are publicly 
listed companies in the uS, uK, France, Germany and Japan. 
Four others are wholly owned subsidiaries of larger public or 
private companies, with the balance privately held by 
institutional investors, private equity firms or company 
founders/top executives. Two companies did not provide 
financial information (which was estimated for this report). 
whAT’S NExT foR ThE ToP 25? 
it is safe to assume the Top 25 will continue to grow in the near 
term, but at a rate one-third to one-half of that prior to the 
recession, given the persistently unsettled economic conditions 
that continue to prevail around the world. Still, demand exists for 
syndicated research firms as corporate buyers seek marketplace 
understanding. 
Where this leads the Top 25 in its longer term future is 
uncertain, given that spending for market research is partially 
discretionary and subject to continuing economic uncertainty. 
Both syndicated and overlapping media research will continue 
to be in demand, while the future of ad hoc survey research, 
subject as it is to the whims of corporate buyers, remains cloudy. 
Meanwhile, the Top 25 cautiously continues to adopt digital and 
big data, which could be the driver of market research in the 
future. Social media research has also been adopted by the Top- 
25 firms, but how it will impact the future of these businesses 
remains unclear. 
Will Ma activity resume its pre-recession pace? in the past, 
Top-25 firms have turned to Mas when they wanted to increase 
their size. lately, however, they have concentrated on acquiring 
small firms to satisfy local requirements. Ma activity will 
contribute to growth when the big firms resume buying each 
other. 
Top-25 revenues were verified by each firm’s public record or third-party sources, 
generally outside accounting firms, following compilation by uS market research 
newsletter Inside Research. It was published in the American Marketing 
Association’s Marketing News-magazine this year in August. It also compiles MA 
activity in each of its issues. 
RESEARCH WORLD | September 2014 63 
among the remaining 15, three firms moved up at least two 
ranks. Symphony Health Solutions moved from 19th to 16th 
place, helped by rapid spending increases in uS healthcare. oRC 
moved from 24th to 22nd with the full integration of its Marketing 
Research Services acquisition. J.d. Power regained its 12th-place 
ranking by fully recovering from revenue declines two years ago. 
Video Research moved down two places due to currency 
exchange rates, while lieberman Research fell four places to the 
bottom of the list due to both a decline in revenues and the fact 
that one of the new firms ranked above it on the list. decision 
Resources Group is the second firm new to the list. displaced was 
nikkei Research, whose revenues fell below the threshold, while 
arbitron become part of nielsen. 
MoRE ChANGES ThiS yEAR 
looking deeper into the Top 25 reveals the following not-so-apparent 
changes: 
• The qualifying threshold is higher. a 2013 ranking required 
revenue of uS $100 million, an increase of nearly uS $8 million 
over last year. For the eight years following 2000, the threshold 
ranged up and down between uS $42 million and uS $54 
million, but in 2008 it began to rise to its present record high 
level, which will no doubt continue to rise in the future. 
• Mas declined. The number of Mas made by Top-25 firms 
declined in 2013 by 67% to 21 (vs. 31) the year before. The big 
acquisition in 2013 was nielsen’s buying arbitron, which 
accounted for about 75% of total Top-25 Ma revenue. (The 
top year for acquisitions was 2008, just before the start of of 
the worldwide recession.) acquisitions were mostly small in 
2013, which trend is in keeping with most firms’ strategy of 
“backing and filling” internationally. 
The top five firms (excluding iMS, which did not reveal its 
acquisitions) made 14 of 21 Mas this year (or 67% of the total 
by count). Kantar led the list with six, followed by GfK with three 
and ipsos with two. nielsen also had two, including the big 
arbitron buy. 
• Productivity continues to be flat. in 2013, productivity averaged 
uS $176,000 in revenue per full-time employee. Productivity 
has been relatively flat over the last six years (despite a dip in 
2009). More efficient and less costly software, more data 
collection via the internet and more business-focused 
management have all played a part. 
Laurence N. Gold 
is editor and publisher of Inside Research in the uSA 
acquisitions were mostly small in 
2013, which trend is in keeping 
with most firms’ strategy of 
“backing and filling” internationally.
64 RESEARCH WORLD | September 2014
RESEARCH WORLD | September 2014 65
BOuNDARIES 
nOAH ROyCHOWDHuRy AnD niCHOLA kEnT-LEmOn 
Scouting for growth 
What is the best way to reach girls and young women for the World association of 
Girl Guides and Girl Scouts (WaGGGS) in Malaysia, Madagascar, oman, Poland and 
St. Vincent and the Grenadines? 
66 RESEARCH WORLD | September 2014
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Research World 47 September

  • 1. Encouraging, advancing and elevating market research worldwide No 47 | September 2014 1 RISE OF THE MACHINES Turning the corner A brightening outlook New revenue streams New horizons RESEARCH WORLD I 47 | S b 2014 7
  • 2.
  • 3.
  • 4. Published by 4 RESEARCH WORLD | September 2014 Encouraging, advancing and elevating market research, worldwide. REguLARS FEATuRES 6 EdiToRial A whole new world 83 RW ConnECT Big data and the future of qualitative research 83 dR. PETE The walk-in clinic for research ailments 85 MEdia SCan Driving brand advertising into online channels 86 MaRKETinG CaSE HiSToRY How changing consumer behaviour may challenge traditional marketing research 88 ESoMaR lounGE 90 ESoMaR CalEndaR 26 RESEARCH CHALLENgE ThE NEw Look of ANALyTiCS As we’re sparring, my kickboxing trainer asks me the same question in every session: “Where are you looking?” 38 RESEARCH IN BuSINESS ThE fUTURE of MARkET RESEARCh Full-service-self-serve research 60 gLOBAL MARKET RESEARCH MoDEST GRowTh foR woRLD’S LARGEST RESEARCh fiRMS The world’s largest 25 marketing research firms experienced modest revenue growth in 2013, driven by syndicated services firms and held in check by changing currency exchange rates and flat revenue per employee. 66 BOuNDARIES SCoUTiNG foR GRowTh What is the best way to reach girls and young women for the World Association of girl guides and girl Scouts (WAgggS) in Malaysia, Madagascar, Oman, Poland and St. Vincent and the grenadines? 87 ESOMAR ANNOuNCEMENT ESoMAR MEMBER ExPELLED foR BREACh of iCC/ESoMAR iNTERNATioNAL CoDE Editor-in-chief Simon Chadwick Editors Angela Canin, Kathy Joe Sub-editor Christopher McLaren Editorial Board Rex Briggs of Marketing Evolution Ansgar Hölscher of Beiersdorf Jeffrey Hunter, Consultant John Kearon of BrainJuicer David McCaughan of McCann Erickson Sean Meehan of IMD Contributors Jo Bowman, Robert Heeg, Manfred Mareck, Tim Macer Advertising sales John van Hoop business@esomar.org Production co-ordinator Mascha Ringers Lay out & Art direction Puntspatie [bno] Print Joh. Enschede Amsterdam Subscriptions customerservice@esomar.org Research World welcomes contributions and reserves the right to select and edit readers’ contributions. Contributions should be sent to angela@esomar.org Whilst every effort is made to ensure that the information in this magazine is correct, ESOMAR does not accept liability for any inaccuracies that Research World might contain. The views expressed in this publication are not necessarily those of ESOMAR. Copyright © ESOMAR 2014. All rights reserved. No part of this publication may be reproduced in any form or by any means without prior permission in writing from the publisher. Research World is published six times a year by ESOMAR, Atlas Arena, Hoogoorddreef 5, 1101 BA Amsterdam, the Netherlands. Tel: +31 20 664 2141. www.esomar.org ® Research World is a registered trade mark of ESOMAR ERRATUM The Data, analysis, action! article in the June/July of RW should have stated that it was the father of the teenager who didn't know she was pregnant and who then apologised to Target for creating a scene when he found out from his daughter that, indeed, she was pregnant.
  • 5. RESEARCH WORLD | September 2014 5 SEPTEMBER 2014 32 OuT OF THE BOx RISE OF THE MACHINES Digital pioneer Andy Hobsbawm tells Jo Bowman the machines are here. 10 RESEARCH CHALLENgE DATA viSUALiSATioN iN MARkET RESEARCh Mention data visualisation to any three researchers, and reactions will range from enthusiasm – and even conviction – to scepticism or despair that it is another example of “dumbing down.” 20 BOuNDARIES ThE wAy of ThE MAGPiE A three-step programme to transform curiosity into inspirational thinking and doing 54 RESEARCH CHALLENgE DoiNG MoRE wiTh MoRE Multi-phase and hybrid studies yield greater depth 48 ESOMAR gLOBAL RESEARCH TURNiNG ThE CoRNER Returning confidence and increasing investment in North America have helped counter the effects of slowing growth in the world’s biggest emerging economies in 2013. 72 TRENDS NEw hoRizoNS, NEw REvENUE STREAMS The research and marketing giant WPP now makes 50 percent of its money from markets and tools that didn’t exist in the year 2000. CEO Sir Martin Sorrell explains the rise of data – and why it doesn’t quite have all the answers. 78 PRIVACY To ARMS, SMART DATA SCiENTiSTS! How change, science-fiction and privacy may be key to safeguarding research
  • 6. EDITORIAL SimOn CHADWiCk A whole new world 6 RESEARCH WORLD | September 2014 i said i pulled these facts and figures out at random, but actually, when you look at them all together, they form a mosaic of the world of research in the not-very-distant future. it is a future that is intriguing and exciting, even if it is one for which we have to mindfully change in order to be successful. and that brings me to perhaps the most intriguing question of all: what type of people, with what skill sets and what character traits, will lead us to that success? Clearly, they are going to have to be people who are naturally curious and who have the ability to handle large and diverse data sets. They are going to have to be digitally capable, too, but at the same time possess the insight and empathy to really understand consumers and the ‘why’ behind all that data. They are going to have to be at ease in a multicultural world, and, most of all, they are going to have to have the ability to take all of this, synthesise it, put it into stories and visuals that are easily understood and then consult on its meaning. Very likely, we will not find all these attributes in one person, but the concept of team collaboration is one that is very much taking hold today. one can visualise teams of specialists, data analysts, synthesisers, storytellers and consultants coming together to bring real impact to the research that they design and disseminate. But, most excitingly, many of the traits that i have outlined are the ones that characterise the Millennial Generation– collaborative, curious, digital-native, data-proficient synthesists who are completely at home with multi-tasking and dealing with diverse sets of information in real time. The fact that this generation is gearing up to assume leadership positions in the market research and analytics industry gives me tremendous hope for the future. This month’s issue is a must read from cover to cover for those wanting to gain a comprehensive idea of where we are going as an industry/profession and how we are going to get there. But for those of you who are just skimming until that plane ride where you catch up on all your reading, let me pull out some choice bits at random for you to chew on: • 50% of WPP’s data investment Management (aka Kantar) revenue now comes from markets and tools that did not exist back in 2000. Who said that the mega research companies are slow to change? • Martin Sorrell, the Warren Buffett of media and market research, is placing heavy bets on everything digital –and on the BRiCS. • The ‘internet of things’ will create brand relationships that are far more binding than those of today –and, in the process, be a bonanza for data scientists and market researchers. • The combination of big data and qualitative research means a big win-win for research. • Qualitative research is itself creating ‘little big data’ in the thousands of pieces of text and video imagery that it is capable of generating in one digital or mobile project –and the rise of multi-part or sequential qualitative projects will only accelerate that. •We are the “curiosity industry.” • Co-creation, synthesis, storytelling, predictive analytics, mobile and passive data collection will be the pillars of our profession in the future. • data visualisation, a critical part of our success in the future, takes expertise, analysis, teamwork and thoughtful design to really work. •We are in the midst of “a technological revolution and a consulting evolution.” • ‘agile research,’ in which research processes are increasingly automated, will free up researchers to add consultative value in a way that they have not been able to do in decades.
  • 7. RESEARCH WORLD | September 2014 7
  • 8. 8 RESEARCH WORLD | September 2014
  • 9. RESEARCH WORLD | September 2014 9
  • 11. Mention data visualisation to any three researchers, and reactions will range from enthusiasm–and even conviction–to scepticism or despair that it is another example of “dumbing down.” 10 RESEARCH WORLD | September 2014 graphic in the uK
  • 12. John Schiela, vice president of converged technology and media at Phoenix Marketing, a uSa-based consultative research company, says, “We use a lot of different tools to visualise data: Marketsight, dapresy, Excelsius; we do stuff in SQl Server, HTMl. Each has their benefits and their challenges.” Schiela has moved both internal analysts and clients away from conventional cross-tabular reports to predominantly visual and interactive methods. He cites two major benefits: “one is to avoid ‘death by data.’ i think tables really limit how you look at data”; secondly, he asserts, “visualisation allows you to do [what] we often don’t do as an industry, and that is to pull in other macro-level data and visualise this, too.” For Phoenix, this means moving towards what Schiela describes as “a more business-report style of presentation,” focused on business questions and solutions, “as opposed to a typical research report that analyses the data you collected but does not address the business solution.” Schiela considers the view that visualisation results in a diminution of understanding or the misplacement of rigour. For him, it is a malaise that stems from execution: “We have a tendency to say, ‘i need a dashboard.’ Someone takes the data, dumps it in, and–hey, you’ve got a dashboard! But they’ve not done the business-process analysis, so you end up with a pretty little dashboard that does not show you anything from the business perspective.” He also sees that the role visualisation can play in the analytical process is often overlooked in research: it can offer a better way to pick up weak trends. He will use miniaturised charts with rating scales which “you can eyeball in seconds,” sometimes fashioning hundreds of these tiny bar charts onto one sheet. “The RESEARCH WORLD | September 2014 11 and then there are these tools that very quickly make what are very good-looking dashboards. a mistake people make is that a dashboard that may be fantastic for analysing the story can fall apart when they then try to go on and communicate that insight further.” Whitehead emphasises the need to understand the audience and not assume that one dashboard will fit all eventualities. She describes the solution she would advocate for a large media-buying client (which could apply equally to any major brand): “The user-journey for a chief marketing officer is probably two to three choices to go through to reach the decisions she needs to make, and for this you need a very simple representation. She can go and look at the workings, but she probably does not need to. an analyst tool lets you turn all the dials all the time and check scenarios.” “But the chief marketing officer still needs to be able to check the workings; she won’t have got to that position without being able to,” adds Sturt. “and if you present junior analysts with a really slick interface with one or two insights, they will immediately distrust it because it looks too editorialised and too curated.” Sturt mentions a particular appetite among research companies and their clients for visual storytelling combined with interactivity. according to Whitehead, “market research is more advanced than many industries, and there is an increasing understanding that creativity has a place among more thoughtful market research firms.” whAT’S oUT ThERE? Technology providers have responded, too; from a position of there being no specialist visualisation tools available for survey data five years ago, there are now several, including dapresy, Marketsight and E-Tabs. The craft of presenting data as images is suffering something of an image problem in our industry, even though it is unarguably the direction of travel that data-saturated enterprises are expecting their insight providers to take. are researchers right to be sceptical? i spoke with a range of data-visualisation proponents who have no such qualms. The uK’s Guardian newspaper has, over the years, led the field with its extraordinarily revealing data visualisations and infographics. its in-house digital agency provided data visualisation and storytelling services to clients and has recently been spun off under the name Guardian digital agency but it has recently been acquired by Kantar, and now operates under the name Graphic. it works increasingly with market research companies, visualising their data and providing training in visual storytelling. Emma Whitehead, head of Graphic, says: “The challenge at the heart of data visualisation is the tension between creativity and scale. Technology gives you scale, and people believe that must scale creativity as well –which is a very significant misconception.” Whitehead views the emergence of web-based diY infographic tools like Visual.ly and infogr.am as ‘potentially dangerous.’ “i can fill in a template that will give me a nice long infographic, but that is not the same as an analyst and a designer really thinking about it.” DUMBiNG DowN? Tobias Sturt, design and user experience manager at Graphic, advocates a carefully considered three-stage process to visualising data into either dashboards or infographics (see the accompanying infographic). Each stage, he says, requires different people with different skill sets: “don’t listen to people who say they are a data visualisation expert, and all you need to do is hand over your data– it is all about teamwork.” Sturt is of the view that it is not visualisation that risks trivialising data but those who are willing to take a ‘clip-art’ approach to their visual presentation of data. “There is a new wave of tools coming along,” he says. “Tableau is getting bigger, “I think tables really limit how you look at data.”
  • 13. 12 RESEARCH WORLD | September 2014 for both data integration and interactivity. He says, “if it is not wired up to be connected to the live data–and constantly changing– it is just a static chart. and interactivity, which is not the same as integration, also matters. Giving the user controls so they can manipulate what they are seeing makes for a much richer experience.” NETwoRkS an area of data visualisation that warrants more attention in research is network mapping. Based on network theory, which sits somewhere between sociology, are used to working in a structure of question by question, slide by slide,” he says. “So we use a lot of visualisations that basically have the same structure as a PowerPoint deck, just presented online. a good data visualisation will create a story that helps the user to understand. it will filter away everything that isn’t relevant. That detail will still be there in the background, but only when you ask for it. a dashboard should be worth a hundred slides.” Michael denitto, CEo of Marketsight, which also provides online charting and dashboard software, speaks of the need industry has developed something of a fallacy about significance tests,” he says, alongside other analytical methods such as ‘top-two-box’ reporting: “You have to be careful you are not doping the results by doing this.” The specialist technical providers are mindful of the challenges visualisation presents to those working in market research. Torbjörn andersson, CEo of dapresy, which provides survey-data visualisation software, sees researchers struggling to break free from PowerPoint and ‘sequential thinking’ when they try to create a dashboard or infographic. “They A network map of tweets containing #ESoMAR reveals trending topics and connections between bloggers, companies and publishers active in the world of research Created with NodexL (http://nodexl.codeplex.com) from the Social Media Research Foundation (www.smrfoundation)
  • 14. with Pew Research, which identified different typologies of social networks in Twitter,1 including ‘community clusters,’ ‘brand clusters’ and ‘polarised’ networks. He says the story the research uncovered is that “the shapes of these collections of connections are important. if you look at a topic and it is polarised, then you need to do something different to one that is highly interconnected.” The shapes can determine the actions. What unites each of these data-visualisation advocates is the power they see in its role in data analysis as well as in presentation. data visualisation challenges a number of research orthodoxies, not least because it demands science and creativity work hand in hand. While we can’t all be designers, we can all heed the call to develop our visual literacy. 1 “Mapping Twitter Topic Networks:” From Polarized Crowds to Community Clusters, Pew Research Center, bit.ly/1daAdZV RESEARCH WORLD | September 2014 13 “There is a point where we are taught what is a line chart, but at no point will [most people] get taught what a network is. Most of us have an obstacle to overcome in learning how to interpret these maps. as a network advocate, Smith devotes much of his time to “cultivating visual literacy” in his audience. as he observes, “There is a point where we are taught what is a line chart, but at no point will [most people] get taught what a network is. i have taken on the task of converting the universe to understanding what a network chart is. and it’s not trivial.” not least because they also use advanced statistics behind the scenes that work on what he describes as “collections of connections” in order to discern patterns. What this can mean for the researcher is illustrated in a report Smith worked on statistics and engineering, network maps can unravel the complex webs of interaction that exist within social networks and provide a meaningful way of interpreting geo-locational data from mobile survey apps. network maps have always been notoriously difficult to produce, but one not-for-profit outfit, the Social Media Research Foundation, has recently developed nodeXl, an open-source application which generates complex network maps that are not only relatively easy to interpret but also simple to create. Marc Smith, chief social scientist at uSa-based Connected action Consulting Group, is a sociologist with a particular interest in network analysis. He is also a major contributor to the Social Media Research Foundation’s nodeXl initiative. Smith is convinced of network maps’ relevance to market research. He says: “a map performs three different tasks: Where am i? Where else would i like to be? and how do i get there? Entire networks can be mapped, and when you do that, they will tell you a story. For example, a network can tell you who is the most important person in a network. So ‘Where am i?’ ‘Who’s important?’ and ‘How can i get to them?’ are three important stories we can tell with network maps.” They also happen to be the same questions asked by a majority of research projects. Marc Smith is chief social scientist at Connected Action Consulting group in the uSA. John Schiela is VP of converged technology and media at Phoenix Marketing in the uSA. Tobias Sturt is design and user experience manager at graphic in the uK. Torbjörn Andersson is CEO of Dapresy in Sweden. Michael DeNitto is CEO of Marketsight in the uK. Emma whitehead is head of graphic in the uK. Tim Macer is managing director of meaning ltd and honorary research fellow at the university of Winchester in the uK.
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  • 21. BOuNDARIES CHRiSTOpH WELTER The Way of the Magpie A three-step programme to transform curiosity into inspirational thinking and doing Market research–or, perhaps, the curiosity industry–needs to up its ante specifically when it comes to delivering fresh and inspirational ways of thinking 20 RESEARCH WORLD | September 2014 Step 1. Experiment The american writer Ralph-Waldo Emerson once said: “all life is an experiment. The more experiments you make the better.” So dabble with different topics and pastimes to your heart’s content –anything that has the bright shine of new knowledge or even plain and simple fun. don’t think about how ‘useful’ it will be for you; just collect and marvel. niklas luhmann, one of most important sociologists of the 20th century, was famous for keeping an elaborate filing system, his “Zettelkasten, ”where he stored snippets of information pertaining to a myriad of different fields of knowledge. He liked to keep them on file just in case they’d become useful at some point. artists and craftspeople, too, like the fashion designer Paul Smith, are renowned for maintaining workspaces in the style of a Renaissance “Wunderkammer,” stacked full of strange and beautiful objects. There is so much information in the world that it’s quite impossible to take it all in. But instead of narrowing our vision and pursuing knowledge in our field only, let us approach the world of knowledge as a playground of possibilities. Step 2. Explore But going broad is not enough. next, we need to go deep. at this point, we should stop dabbling and start focusing. Pick one of the shiny topics or activities, and explore it thoroughly. devote time and passion to really understanding its intricacies. Pursue it with the curiosity and the fervour of a child exploring the world for the first time. So go out and take a course in Japanese calligraphy, even though you have no one to write to in Japanese. or go and learn how to 3d-print objects, even though you don’t use a 3d printer in everyday life. non-utilitarian learning will transform you in subtle ways. While immersing yourself, you will 1) acquire new skills; 2) gain a By investing time in passionately exploring foreign fields of knowledge and skill without utilitarian regard, we can create the necessary momentum and sail on the winds of change–with the magpie as our spirit animal. The word is out: any business-service provider that wants to be successful in today’s environment needs to come equipped with the ability to engage, inspire and wow their clients. Market research is frequently diagnosed with an image problem, yet i would argue that our industry is ideally equipped to excel in this race. at the most basic level, it is said that the sheer number of interests you have has a fundamental influence on your overall level of ‘interestingness.’ in that case, we should easily be able to outperform our competitors –after all, we are an industry founded upon curiosity. So how can we cultivate our curiosity more so as to create the kind of environment in which fresh thinking can thrive? let us look to one of the most curious species in the animal world for inspiration– the magpie. ENTER ThE MAGPiE Consider the magpie, that famously feisty stealer of all things shiny. This bird is believed to be one of the most intelligent animals on this planet, capable even of recognising its own mirror image. Yet magpie’s pursuit of all things shiny is something of a mystery to researchers. For all we know, they pick up glitzy things and bring them to their nests without any functional intent–just out of sheer curiosity and playfulness. i think we can learn from this bird’s refreshingly playful attitude: we can learn to let go of our overly utilitarian, linear and goal-orientated way of pursuing knowledge and skills. let the magpie stand instead as a symbol of taking a non-directed interest in the world, and follow me on a three-step process to inspirational thinking.
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  • 23. User instructions for successful magpie-ing: Please try at home 22 RESEARCH WORLD | September 2014 and fresh approaches in the industry. Consider the theatre fan who pursues stage acting as a hobby in her free time, and one day it hits her that a group of actors could help revolutionise the debrief as we know it by acting out findings live with clients. or take the animal lover who relentlessly ponders the intricate ways in which we need to understand different creatures’ sensory perceptions so that we can treat all animals ethically: one fine evening it hits him that we humans are animals with different sensory faculties too, but research so far has left the gap wide open. Thus the idea of five-senses research is born. To make the most of it, we should try to instil the magpie attitude deep into the organisational culture of research: • Make room for inspiration, spaces where people can dabble with their curiosities. Even just having a physical library of inspiring books will make a difference over time. • Encourage people to exploit their life’s passions, possibly in conjunction with flexible career and work-time models. • Create spaces where minds and ideas can connect, whether they are inspiration sessions or evening salons for discussion on hot topics. and invite other magpie thinkers along to join. The wonderful thing about magpie-ing is that all you need is curiosity and passion. let them guide you, and don’t get in their way. fresh perspective on things; and 3) meet new people. or, as the philosopher Roman Krznaric notes, it “may be worth learning to wear the hats of different professions in order to stimulate us to ask new questions or challenge our assumptions and conventional thinking.” Step 3. Connect The last step of magpie-ing is the one where you wait … and trust that magic will happen. Trust that your newly acquired knowledge and skills will eventually connect you with other ideas in ways hitherto unforeseen. History is full of examples that such magic is quite real. in 1931, there was a humble draftsman working at the london underground Signals office by the name of Harry Beck. Harry had a passion for physics and had acquired quite a good bit of knowledge of electrical circuit diagrams. and then one fine day –Boom! – it hit him that the apparent confusion of the london underground could be seen and rendered as a circuit diagram, and the iconic version of the underground map we all know was born. Charles darwin took time off from his studies in medicine in 1827 to go out on a geological excursion studying fossils. He was both astounded and puzzled by their geographical variation. He published amazingly detailed illustrations of the fossils, but at first nothing much happened. Years later, when reading Malthus on the struggle for existence, new neural connections started forming, and gradually, over the following months, an idea was born: natural selection. Maria Popova, curator of the knowledge and inspiration blog Brain Pickings, says: “in order for us to truly create and contribute to the world, we have to be able to connect countless dots, to cross-pollinate ideas from a wealth of disciplines, to combine and recombine these pieces and build new castles.” That, in essence, is what a magpie attitude to inspiration is all about. ThE MAGPiE RESEARChER Great artists and scientists are very often magpie characters, but what is a researcher if not a mixture of artist and scientist? Magpie attitude has lead and is continually leading to innovation Christoph welter is director of strategy at Point-Blank International in germany 1. Experiment Go out there and just dabble with new knowledge and activities. Like the magpie, pick things up just because they are glitzy and shiny. And if they fail to spark any deeper interest – let them go. Dabble, experiment, play. 2. Explore Focus on one of the things you have picked up – the one that inspires you most. Dedicate your time and attention to it. Bring it into your ‘magpie nest’ and make it your own, but still be ‘intent’ free with your choice – go for what drives you, not for what you consider useful. 3. Connect Trust and wait for magic to happen. The new perspectives and skills you have acquired will transform and eventually enable you to rethink your job in novel ways. Lucky collisions between ideas old and new will spark fresh thinking and doing.
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  • 27. RESEaRCH CHallEnGE BRiAnA BROWnELL The New Look of Analytics As we’re sparring, my kickboxing trainer asks me the same question in every session: “Where are you looking?” 26 RESEARCH WORLD | September 2014
  • 28. something cold and complicated. as a result, the ability to communicate results to a wider audience in a compelling way, regardless of that audience’s technical sophistication, is an essential skill for any analytics professional. Storytelling has been a major trend in advertising, because stories have a power - ful emotional draw. But this approach has relevance within an organisation as well. uptake of a new strategy within a business depends both on internal stakeholders’ desire and ability to execute it. it is no longer required (or even desirable) to fill 100 slides with tables and discuss minute statistically significant comparisons. illustrating findings using graphics, video and stories is becoming the norm. The balance between actionable and optimal differs considerably within each organisation, but the common struggle in describing ever more complex statistical methods suggests that the art of explanation promises to be an important point of discussion in the field for a while yet. Changes in communication style both between organisations and within an organisation have a major impact on finding and retaining talent in an area where the trifecta skill-set of business acumen, people skills and technical skills is already nearly impossible to come by. LookiNG AhEAD Ever since nate Silver made a nearly dead-on prediction of the 2012 uS presidential election results, while at the same time various pollsters around the world were way off in their election forecasts, analytics has been both harkened as a miraculous tool and reviled as unreliable. it’s no wonder that many businesses have also shown an increased interest in using predictive analyses to enhance the insights they get out of their analysis of static data, while at the same time failing to implement those results (or doing so only with considerable trepidation). With all the technological advances in the ways in which data can be stored and quickly analysed–and results applied–new models can be quickly examined and fine-tuned as they are operationalised. Refinement and testing that were not previously possible have been enabled by increasingly fast processing power. RESEARCH WORLD | September 2014 27 or industry movement, companies are increasingly looking inward as they attempt to streamline their brand promise and improve their competitiveness in the marketplace. LookiNG foR CoNNECTioNS ‘Big data’ has been a big buzzword for a while, and many businesses feel that they’re missing out on the trend if they aren’t doing something with big data. in reality, there isn’t a magical big data formula that will turn a data set into relevant, actionable insights. in many cases, the biggest issue with big data is indecision– there are so many possibilities that it is very difficult to determine what type of analysis might be appropriate. With such an array of data sources, dashboards are increasingly the go-to hub, as they provide a single place where businesses can easily see key metrics across different business lines, locations, time frames and, yes, big data sources. Collating and visualising the data is only part of the issue, however. often, finding a meaningful way to deal with that big data question mark takes a considerable amount of art and ingenuity – skills that take time to develop. Fortunately, there are some straightforward strategies to consider. one of the great promises of big data is its ability to facilitate insight triangulation– looking at the similarities and differences in multiple data sets which are not neces - sar ily linked together, such as syndicated products, primary research and business intelligence. Together, they can provide much more insight than any one in isolation. LookiNG fRiENDLy if the word “analytics” makes you think of a concrete room filled with giant computer towers and endless reams of numbers flashing across the screen, you’re not alone. analytics is often perceived as While i am supposed to be looking broadly at the various places that a punch or kick could come from, noticing and taking advantage of potentially beneficial openings, i am almost always focusing on the task immediately at hand–avoiding that fist coming right towards my face. often it’s the same at the office, where there are a myriad of daily distractions. While switching focus from project to project, it’s rare to find the time to look more broadly at trends in industry and to notice the similarities in the problems faced by many businesses. But major changes in consumer and business behaviour are becoming more and more evident across sectors. These changes give an indication of how the relevance and demand for certain specialised analytics may rise, thereby shaping the new look of analytics. LookiNG iNwARD Brand is no longer exclusively the domain of the marketing and communications departments but rather has become an all-permeating quality: a company’s brand is viewed as an extension of its corporate culture. The focus on united culture and value proposition means that everyone from the frontlines to the C-suite influences the company’s identity from the inside out. at the same time, customers are also expecting to be closer to companies producing the products they use and love. Many businesses have allowed customers to come in from the outside, treating them as important partners and sounding boards for new product development and adjustments to the customer experience. as a result, the distinction between company insiders and outsiders is becoming increasingly blurred. While most analytics in the past was outwardly focused on things like understanding consumer brand perceptions, competitor behaviour “Brand is no longer exclusively the domain of the marketing and communications departments.”
  • 29. 28 RESEARCH WORLD | September 2014 natural experiments with pricing, positioning and marketing messaging are becoming common. whERE ARE yoU LookiNG? With the term ‘big data’ being bandied about in mainstream business magazines and infographics of all kinds clogging up our Facebook feeds, the major, rapid changes in analytics are set to become increasingly important. Broader trends in operations management continue to affect the demand for specialised analytics. Fortunately, analytics is by its nature reflective. Trends we see when looking outward can have a great influence on how we are able to position ourselves in regard to clients –and within our own organisations. By searching for ways that analytics can provide increasing value in today’s and tomorrow’s economy, we can make sure that data science remains a crucial investment for businesses in years to come. with video camera capabilities but also by widespread video sharing online. Making use of mobile technology to understand how location fits into the bigger research picture in terms of service offering, advertising and targeting remains a promising area to explore more fully. LookiNG BENEATh ThE SURfACE indirectly collected data about behaviour via devices such as door counters, outdoor sensors and time-usage recorders is quickly increasing in variety and availability. This passive data has the great advantage of providing the opportunity to compare observed behaviours to peoples’ perceptions of their own behaviour. natural experiments with pricing, positioning and marketing messaging are becoming common. Many organisations are interested in doing their best to optimise offerings before bringing a product to market, and this explains the popularity of data-collection methods that attempt to elicit naturalistic information about likely behaviour prior to launch. increasingly popular methods include neuroscience or gamification techniques, both of which attempt to circumvent our tendencies to rationalise past behaviours and explain motivations when asked about them directly. Combining implicit and explicit methodologies is becoming an increasingly powerful way to analyse and predict behaviour. Regrettably, though, most sources are at present vague about the actual methods used in forecasting, while at the same time seeming to overpromise results, thus making it difficult to separate the marketing hype from any truly profound new prediction methods. let’s hope increased interest will lead to increased transparency in this area. LookiNG AT LoCATioN With smartphone penetration steadily marching up in nearly every country around the world, mobile data is a major opportunity for insightful analysis into culture, lifestyles and behavioural patterns. location-based data has been used in passive ways to optimise street traffic, predict repeat business, track customer movement within an establishment and optimise new store placement. active data uses mobile ethnography, and this “day-in-the-life” type of deep qualitative research is made possible not only by the prevalence of smartphones Briana Brownell is manager of analytics at Insightrix Research in Canada
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  • 34. OuT OF THE BOx JO BOWmAn Rise of the machines digital pioneer andy Hobsbawm tells Jo Bowman the machines are here. model, renting them on a thrust-per-second basis in a way similar to small businesses buying services from amazon. Such a model is made possible because of instruments that allow remote monitoring of each engine. The engines, in a sense, “talk” to the engineers back at HQ. imagine this model applied to car insurance, Hobsbawm says: already, tracking devices allow policies to be altered according to the way individuals drive, but what if you could have a policy for your regular routes and then upgrade when you go away for a long weekend? in healthcare, a “smart pill” has been approved for use by the uS Food and drug administration. “it’s sort of the equivalent of swallowing an entire surgical team in terms of the diagnostics – the idea of new technologies and pathways that allow you to remotely monitor health and even administer treatment, or use wearable technology to encourage people to lead healthier lifestyles so they don’t get ill in the first place.” For objects to be connected with the internet, they need to become searchable resources with their own digital footprint: an identity that can be searched, linked to, shared and manipulated. This means objects can be both virtual and physical. Your car, for instance, could then become part of your social network. “i’m not entirely sure why you’d want a car to be part of your social network, but it’s interesting that you can,” Hobsbawm says. “You can friend your car, and it can send you alerts saying ‘My battery needs recharging.’” There are fridge magnets that can re-order milk when you’re running low, Philips light bulbs that change colour according to instructions from a user’s smartphone and indicators that alert a householder –or farmer –that plants or crops need watering. it’s conceivable that a washing machine would be able to recommend a trusted local tradesperson–and even book an appointment –when it needs repairing. Budweiser have developed a novelty branded light that, once it has been told which team your support, launches into a celebration whenever your team scores. RESEARCH WORLD | September 2014 33 We search online for gift ideas, tradespeople, news and entertainment, but what if you could Google a parking space and your possessions could talk to each other? The connections that have linked people and businesses through their computers and phones are about to precipitate the next industrial revolution, one no less significant than the invention of rail travel and electricity. andy Hobsbawm, founder and chief marketing officer of software company Evrythng, says the nascent “internet of things” is a game-changer for individuals, businesses and governments, as everyday objects from parking meters and thermostats to medicines and clothing connect to the internet via sensors or computer chips. By 2015, Hobsbawm predicts that one trillion devices will be connected to the internet, billions of them not computers or smartphones but ‘things.’ “now is the coming dawn of when things start to become connected, from the chairs you sit on to the streets, the buildings and potentially even smart dust in the air,” he says. “There are a lot of ‘things’ in the world, and for them to start becoming connected has got to be quite significant, even if we don’t know exactly how it’s going to play out. it’s a very big, disruptive shift.” We’re already familiar with the beginnings of the internet of things. near-field communication enables physical things like london’s oyster cards, which can be used for payment across the travel network, to feed massive amounts of data about passenger patterns to data analysts who can work out how best to manage traffic flows. The same kind of tracking could be used to manage container ships and other ways of moving. ThE BUSiNESS MoDEL But it’s not just new connections; new business models are emerging from the internet of things as well. Rolls-Royce, for instance, is able to proved jet engines on a subscription-style
  • 35. 34 RESEARCH WORLD | September 2014 consumer products sold every year – smart tags that can trigger the launch of information or links via a smartphone are entirely plausible, Hobsbawm says. an object could, therefore, “tell” its new owner how it was made or provide links to warranties, instruction manuals and ongoing suggestions for use. “What we’re trying to do is connect people to brands via physical things,” he says. The new owner of a guitar, for instance, might “claim” it online through a QR code on the item or a near-field communication tag, and that online connection could trigger tailored experiences. a discount at your nearest music shop could be offered; you could receive music playlists if you like a certain style of music; you might receive a suggestion to invest in heavier strings, links to musicians nearby looking for a guitarist for their band or even a discount on a British airways flight to nashville because the guitar “knows” you’ve been listening to a lot of Johnny Cash. The guitar manufacturer goes from knowing nothing about purchasers to having an ongoing relationship with them. other brand experiences could be triggered by, say, a sudden change in the temperature where the user of a product lives or the national football team making the World Cup finals. a particular book could become a digital pass to a literary festival, and a drinks brand might send a limousine for your ride home one night because it knows it’s your birthday. a motorist might be able to follow parking spaces on Twitter and know when they’re vacant, and a cereal packet that might normally include a plastic toy for children might instead provide points on Candy Crush. diageo has done a Father’s day promotion in which a personalised film could be digitally attached to bottles bought as gifts, with a CRM opt-in for both giver and recipient. The skills required for a marketing world that’s more about personalisation than a broadcast blast are an extension, Hobsbawm says, of those that have always been at the heart of marketing. “in a sense, modern marketing is deeply powered by technology at all levels. if you look at what exists in a CMo’s stack of systems, it’s becoming unbelievably sophisticated. What i’ve talked about is an extension of that, even if it’s a dramatic amplification. That would suggest that anybody who’s in marketing, unless they’re fluent in technology and they’re understanding that world and thinking of technology-powered marketing as marketing, then they’re going to run into problems. The world is networked. all marketing is a way of understanding the world in order to connect buyers and sellers, so if you don’t understand the world, you’re in trouble.” iNfoRMiNG DESiGN There is some risk that if objects and brands are doing their own data collection and informing communications, researchers are made, to some extent, redundant. But actually convincing consumers to connect up their many things and be honest about the information they supply is where a new role for research emerges, Hobsbawm says. “The research industry is in a very interesting place, because the more data there is, the more potential insight there is. in a petabyte age, where you can turn on features for, say, three million people and just see what they do, i think that does put “These things can be combined in interesting ways. disney came up with a storybook application on a tablet that can be synched with your Philips light, so if you’re reading a kid’s story on the iPad, the lighting will change according to the narrative. So you can start to see ways that all this creativity creates new opportunities, because it’s all part of a system, and i think we’re only just starting to scratch the surface.” often, the applications of these types of advances are not immediately evident, but Hobsbawm says that’s no reason to dismiss them: “They have ways of becoming useful in ways you can’t imagine.” BRAvE NEw woRLD of MARkETiNG This all throws brand marketing into a new light, because when objects become connected, their digital lives can change the physical products, too. Take nike running shoes connected to the FuelBand system. “The shoe is actually a social, connected data service that connects you to friends. it tracks your runs, it gives you access to a community, and if you compared two nike shoes the same size and design, they’re in fact completely different, because your shoe has a data footprint different to mine,” Hobsbawm says. “What that means for me is that to suddenly switch shoes is as painful as it is to switch from amazon to another e-commerce provider that doesn’t have all of my history and my credit card and wishlist and so on. So the ability to personalise objects –and for them to understand your history and use it– is quite a powerful way to bind people to them. We’re moving to a time where objects are dynamic and adjust themselves to your preferences. Things are going to change, and therefore the way they’re marketed is going to change as well.” as Stefan olander, VP of digital sport with nike, has said, once a brand has established a direct relationship with a consumer, the brand doesn’t need to advertise to them. While it would be prohibitively expensive to computer-chip every single object consumers buy – there are 3.3 trillion
  • 36. “Convincing consumers to connect up their many things and be honest about the information they supply is where a new role for research emerges.” Copyright Market Research Society – MRS RESEARCH WORLD | September 2014 35 pressure on pre-existing techniques which are more slow moving. The question for the research industry would be how fluent they become with managing the analytics of big data–blending these enormous data sets and predictive algorithms –as well as more of the qualitative and psychological research. if the research industry really embraces the big data analytics as well as all of the traditional skills, then it’s in a really good place.” Helping brands understand how consumers relate to the internet of things would be a vital service. “What is it that people actually want is where marketing and research comes in,” he says. “How you create the right propositions needs deep insights. do people want to be alerted when the burglar alarm has gone off? i would think yes, because it’s a situation where you want to take some action and you want to alert the police as well. do you want to be alerted when the washing machine’s finished its load? Possibly. These are all just proposition questions about how you design the service. The nuance of how you design the service is the experience. But whether or not people want to be alerted of that, you need to research it and ask them.” Andy hobsbawm is founder and chief marketing officer of software company Evrythng
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  • 39. RESEARCH IN BuSINESS STEpHEn pHiLLipS THE FuTuRE OF MARKET RESEARCH Full-service-self-serve research as we all know, our industry has changed radically in the last 20 years. 38 RESEARCH WORLD | September 2014 ThE MARkET RESEARCh vALUE CURvE our chief technology officer recently gave a presentation at the iieX conference, delivering a great illustration of the failings of the traditional market research business model. We can all think of projects that have dragged on, squeezing the profit margin with every day spent drilling into the data. The traditional market research value curve has a steep initial climb, where research agencies spend their time under - standing a client’s issues and applying their consultative frameworks. data collection can be swift, and though coding question - naires can take some time, it’s when we move into processing, analysis and reporting that the profit we deliver drops significantly. Junior research executives are relied upon to review the data and deliver insight, simply because it’s not economi - cally viable to have consultants poring over every table. data processing and analysis often takes several weeks, and a whole team is occupied with making sure that the data is clean–and manipulating it when necessary. This process squeezes the real value, the delivery of strategic insight, which is rushed to meet with tight dead - lines and already overflowing timesheets. in the new world of research that we envisage, the value curve is radically different. Expert resources have been deployed in the design of the project customers at the heart of business? absolutely. do we need to evolve and adapt to this new world? of course. Join me, if you will, and imagine what the insight world will look like in five years’ time. What was once our bread and butter is increasingly at risk from new approaches, in many cases approaches which fit better with the pace and demands of modern business. in five years, the insight professionals who will have profited and succeeded in this new world will have been those who have managed to convey, package and deliver their expertise free of the constraints of traditional market research. data checking and processing, laborious survey scripting, charting and aligning PowerPoint presentations: all of these will become programmatic, handled by machines. our future lies in adding value, using our knowledge and expertise to consult and design, to analyse and put trends in context. The process of market research will be squeezed and dismantled, and people delivering insight will become increasingly skilled consultants, aided by machines. as a wise speaker at a conference i recently attended quipped, we are looking at a “technology revolution and a consultancy evolution.” i can find no better words to sum up how i see the future of our industry. From the shift from CaTi to online surveys in the 90s to the emergence of mobile, big data and insight communities in the 00s, innovation in research technology has consistently given us the tools to position customer insight at the heart of modern business. in recent years, however, the pace of change has been accelerating rapidly. Computing is advancing faster than ever before. Coding languages such as Ruby on Rails and cloud technology like amazon’s EC2 have democratised technology, allowing entrepreneurs with a vision to quickly develop an idea into a robust, scalable digital business. in this context, business ideas are exploited with increasing ease, and new ways of collecting, understanding and disseminating customer data are emerging all the time. our clients are also moving faster than ever, and where they were previously content to wait weeks or months for insight, they are now used to waiting minutes, calling on big data platforms or social media queries to inform their decision making instead of conventional survey data. Where does it leave us, you might ask, the stalwart research industry with our rich heritage and wealth of experience in understanding people? do we still have an indispensable voice in keeping
  • 40. RESEARCH WORLD | September 2014 39 Pawel Kuczynski
  • 41. 40 RESEARCH WORLD | September 2014 enterprises, companies which couldn’t previously afford the premium that great research delivery often demands. Think, for example, of a marketing manager for a mid-sized brand, someone who might have an annual budget of uS $200,000 for marketing and perhaps uS $15,000 for research. Most research agencies would struggle to deliver real value for that amount, and, though we might not want to admit it, many would want to avoid that sort of client –often demanding and with comparatively shallow pockets. With full-service- self-serve tools, that client can now run up to ten projects in a year, testing creative campaigns, understanding brand drivers, filtering taglines, exploring social media and running online focus groups – in essence, a full, agile, slim-line research pro - gramme delivered to an affordable budget. ultimately, we are convinced there are benefits for all in the way that insight delivery is changing. it’s a brave new world, and not everyone will jump in head-first. However, it is a very brave agency which decides to ignore the trends and chal - lenges in their entirety. This is agile, it’s the future, and we are proud to be a part of it. ting to their thinking with innovative software features that our application affords. Forward-thinking people in those companies share our goal: to add value through design and great thinking rather than process. of course, there have been questions around cannibalisation, particularly with high-value assets such as the ConversionModel and Millward Brown’s creative testing being made available at a reduced price. However, i would argue that the far greater threat comes from diY solu - tions and other sources of data managem - ent which, if left without response, are likely to erode our revenues with increasing severity over the next decade. it is often all too easy to focus on risk without giving enough thought to the opportunity that innovation enables. We see great potential in the full-service-self-serve space to increase research use and, in some cases, even increase research spend overall. We envisage an agile world in which consumer insight is affordable and accessible enough to be deployed frequently and iteratively, in which, for example, brand managers can inject the consumer voice at every stage of the creative development process instead of relying on one or two potentially lengthy and expensive research projects. Full-service- self-serve makes this method of working viable. Certainly our experience is that, once businesses adopt this approach, the benefits they reap easily validate their risk, keeping the customer at the heart of the development process while maintaining an emphasis on delivering even more great quality insight. By cutting down on process, and consequently cost, we are also opening up expert insight to small- and medium-sized before it has even begun. The process is by and large programmatic, with some time spent on customisation, and the value that researchers provide increases towards the end of the project: spending their time consulting and having meaningful conversations, and charging clients for their time accordingly. We are clearly still in the early days, but our experiences with our partners suggest that this is more than just speculative musing. They are seeing the early stages of a step-change in their relationship with clients, and it is exciting. iNTELLiGENT AUToMATioN The really exciting change is that the reach of technology won’t stop with process; software is getting much smarter. We invest a lot of our time experimenting with automation, and even analysis is on our radar. By employing senior consultants to craft strategic, category and even brand-specific analysis text, then linking that text to changes and permutations in data, we can manage insight-generation with the click of a button. There are some limitations to this technology – that’s where researchers step in to give context–but we are constantly striving to improve it. Whatever you may think, the stake is in the ground, and the challenge to the industry has been set: evolve, or watch your market share cede to new innovations. our vision for an agile, consultancy-driven, technology-enabled research world is validated by the increasing number of entrants to the ‘full-service-self-serve’ space. as but one example, at ZappiStore, we have partnered with forward-thinking companies such as Millward Brown, TnS and MMR to deliver their iP onto our automated self-service platform, contribu - Stephen Phillips is CEO at ZappiStore in the uK Value/Prot Time T Full service MR offering adds signicant value to client by spending time understanding their company and problem Data gathering still protable (Survey Monkey EBITDA 53.9%) Reliance on execs having to nd the story every single time undermines standardisation and quality Signicant time spent on data manipulation and hygienic factors before any true value can be added Data structures dened early in process with limited manipulation €exibility leads to high rework costs Manual interventions to produce usable information from source data increases costs signicantly Strategic insights deliverd under time and cost pressure, if at all Study design Data collection Data cleaning Mistakes Fiddle with pptx Headline insights and strategic next steps Stare at tables looking for the story Value/Prot Time ZappiStore process by automating study design and data collection Data processing and reporting delivered in real time via expert-led automated data platform – building the story behind the data Researchers focused on exploring the story to create actionable outcomes for the client Beginning of a true enriched dialogue with each client that focuses on future steps Study design Data collection Headline insights and strategic next steps What next? Graph 1. Traditional market research model Graph 2. New world research value curve
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  • 49. ESOMAR gLOBAL RESEARCH JO BOWmAn Turning the corner A brightening outlook Returning confidence and increasing investment in north america have helped counter the effects of slowing growth in the world’s biggest emerging economies in 2013. 48 RESEARCH WORLD | September 2014
  • 50. Graph 1. Global market research turnover 2013 US $ 40,287 million such a small base that these markets continue to have little impact on the overall performance of the region. Bangladesh grew at more than 28% in 2013, but it remains less than one one-hundredth the size of the Chinese market. The region’s net growth was 1.6%. • The two biggest markets in latin america both saw declines in market research turnover in 2013: Brazil by 2.8% and Mexico by 5.9%. Brazil’s dip can be somewhat attributed to the fact that, in the previous year, there was a surge in demand for research ahead of the hotly contested municipal elections, while in Mexico the lull follows a cooling of the broader economy. argentina and Peru were the stand-out growth markets in the region, posting 19.7% and 15.5% growth respectively, although in Peru, the lower costs of digital research compared to other methods is leading some clients to move their research in-house, hurting agency revenues. net growth for the region was -0.1%. •While absolute earnings volume in local currencies was up in africa, the effect of exchange rate changes versus the uS dollar and high inflation– surpassing 16% in East africa in 2013– meant the region ultimately had a net decline in inflation-adjusted revenue of 1.2%. The region’s biggest market, South africa, enjoyed growth in digital research and served a growing number of domestic clients looking to expand across the region, but it struggled with a growing number of clients seeking ad hoc work rather than contracts, smaller client budgets and a shortage of trained staff; it saw a net loss of 2.0%. Meanwhile, West africa (up 7.3%) and nigeria (up 5.3%) were buoyant. • in the Middle East, a slowing decline in 2013 represented an improvement over the sharp drop-offs in 2012. net growth was -1.2% for the region. lebanon was the star of the show, posting RESEARCH WORLD | September 2014 49 ESoMaR’s annual report on the state of the market research industry shows that north america’s recovery from recession helped world research turnover rise 0.7% in 2013 to uS $40.3 billion. This is the same overall growth rate the industry saw a year earlier, but then it was latin america and asia-Pacific that were buoying the industry. This year’s Global Market Research report, to be launched at the ESoMaR Congress in nice on 8 September, suggests that 2013 was a year of transition: there is strong optimism that 2014 will be a more prosperous year for the industry, with forecasts predicting the highest levels of growth for some years (and significantly higher than a year ago). The GMR report ventures beyond regional averages to give an overview of the market; it looks at how the industry has been tackling the challenges it faces in different market sectors and how it is expanding into new areas, growing its value as an essential service to business (often helped by technology that once looked like it might threaten the sector’s very existence). ToP-LiNE fiNDiNGS Europe continued to account for 40% of global research turnover, despite none of the Eu-15 countries making it onto the list of the ten fastest-growing markets in the region. north america grew its share by two percentage points to 39% of the total; its gain was asia-Pacific’s loss. Booms in small, fast-growing asian markets failed to make up for slowing growth in China and Japan (after adjustment for inflation). Highlights of this year’s GMR report include: • Market research turnover increased in 49 countries or sub-regions in 2013 and declined in 40 (after adjustment for inflation). • in north america, the uS grew by 2.7% in the year, tracking steady improvement in the national economy. Growth in revenue from survey research slowed to less than 1%, but qualitative enjoyed a strong recovery, as did syndicated research and media research. Research turnover in Canada is only a fraction of that in the uS, but growth there of 7.4% helped lift revenue for the region as a whole by 2.9%. • ukraine was the fastest growing market in Europe for the second year running (8.2% net growth in 2013), followed by Russia (5.8%), most likely driven by strong performances in the first three quarters of the year (before tensions over Crimea and eastern ukraine flared up). France (0.1% growth), the netherlands (0.6%), denmark (0.4%) and luxembourg (2.0%) were the only markets in the Eu-15 to stay in positive territory, with Portugal (down 22%) the hardest hit by general economic hardship. Bulgaria (5.3% growth) was the best performer among new Eu member states. Cyprus, the smallest research market among the new members, saw revenues plummet by over a third. overall, European net growth was -1.4%. • in asia-Pacific, the largest market, Japan, showed sluggish growth of just 0.5% (after adjustment for inflation) and China, which now has turnover approaching that of Japan, showed slower growth in 2013 (4.4% as compared to more than 11% a year earlier). Myanmar, Bangladesh, Cambodia and laos grew at a tremendous pace (50% in the case of Myanmar), but from Middle East $ 277; 1% W Africa $ 382; 1% Latin America $ 1,920; 5% Asia Paci!c $ 5,998; 15% (-1) North America $ 15,705; 39% (+2) Europe $16,005; 40% ESoMaR estimates. Rounded figures presented. Brackets show percentage point changes in market share compared to 2012.
  • 51. 50 RESEARCH WORLD | September 2014 Graph 2. Net growth rate 2013 (adjusted for inflation) Exchange rate fluctuations eliminated. iMF inflation rates used to determine net growth. coming from expansion in the healthcare, technology, financial services and fashion sectors. “as africans are very conscious of status, even in rural areas you’ll find some of the latest Samsung phones and iPhones; they’re very keen to purchase products that express who they are. We probably have more German cars than they have in Germany,” Falala says. as people move up the socio-economic ladder, they look to express themselves in new ways, so there’s growing demand for cultural experiences such as theatre, dance and dining out. Globally, the manufacturing sector is still the biggest consumer of market research, followed by media businesses and financial services. despite the overall lacklustre growth in the global market research industry in 2013, there’s confidence that business is on the up. a far larger majority of respondents to the GMR questionnaire than in recent years is predicting better times in 2014: 82% said they expected growth (compared to 60% a year ago); 9% expect an industry decline in revenues (an improvement record net gains of 38.9% due to rising demand for research and the launch of the GfK MRME TaM panel. The Gulf Cooperation Council countries –Bahrain, Kuwait, oman, Qatar, Saudi arabia and the uaE–together are the biggest market in the region and grew 4.4% in 2013. Continuing instability in the region affected the industry in other countries. israel saw a 1.5% net decline, Egypt’s market dipped 8%, iran dropped 11.2% and iraq was down 45.5%. ThE NEw NoRMAL The biggest markets for research remained unchanged from 2012: the uS stayed at the top of the league and in 2013 accounted for 37% of revenue (followed by the uK, Germany, France and Japan). These five markets together represented 70 per cent of the industry’s global takings. Yet it is apparent that business confidence has yet to return in these markets to the levels that existed before the 2009 economic crisis. “We’re operating in a world which is growing at a much slower pace than before the financial crisis, not just in the developed world but also in developing markets,” says ipsos founder and co-president didier Truchot. “The corporate world has become very risk averse,” he says. “innovation is being used to streamline a business rather than as leverage for growth. The taste for adventure just isn’t there.” developing markets still present the strongest influence on growth in demand for research, though the large BRiC markets are less significant than they were a few years ago, and smaller, fast-growing emerging economies are where much of the client appetite is shifting. at the same time, the rise of technology-based companies is putting into sharp focus the true importance of brand and reputation, along with the potential for technology to disrupt not just tech-focused industry fields but also financial services, retail and media. “What’s most exciting is seeing the market research industry revitalised by new thinking, doing what we always used to do– taking the best of the new scientific thinking and technology and adopting it into practice,” says GfK global training director Phyllis Macfarlane. latin america is one of the regions presenting strong opportunities for future growth, as local and international businesses seek to understand the newly affluent–and those on lower incomes whose spending power is slowly rising. Sarah Boumphrey is head of countries and consumers research at Euromonitor; she says the region’s increasing economic stability, young population and proximity to the uS are helping growth. “There are more than 87 million middle-class homes with household incomes between uS $10,000 and uS $45,000,” she says. “Engaging with these consumers early on can produce long-term benefits. These consumers, once won, can be transferred up the value chain from the initial low-priced purchases to high-margin products and services.” africa, too, is a collection of markets in which much remains to be understood about consumers and their fast-evolving preferences and priorities. Sifiso Falala, CEo of Plus 94 Research, says businesses are aware of the risks of working in volatile markets but have confidence that things are on the up. Growth is World Europe North America Asia Paci!c Latin America Africa Middle East 0,7% -1,4% 2,9% 1,6% -0,1% -1,2% -1,2% Globally, the manufacturing sector is still the biggest consumer of market research, followed by media businesses and financial services.
  • 52. RESEARCH WORLD | September 2014 51 Graph 3. five largest markets –Market share 2013 (US$ millions) Japan $ 1,843; 5% (-1) over last year’s 19%); 9% expect no change (versus 21% the previous year). CLiCk AND CoLLECT Technology continues to change the way that researchers carry out their work, and it continues to lower the barriers to entry for new kinds of service providers that are generating business insights. The highest proportion of work being done online is in Japan, where, in 2013, 46% of turnover came from online (up from 40% in 2012). Bulgaria, a huge centre for outsourced research, is the second-biggest online market (43% of the total is online), followed by Sweden and Canada (both 38%), with the netherlands rounding out the top five (36% of research is online). The rise of big data–and a falling out of favour of the term ‘big data’ –has led to misunderstandings about what can and what can’t be achieved with it. “as more people get their hands on big data, they’ll see that, while you can now potentially prove something that you had a hard time doing with traditional market research,” says Google research manager Thomas Park. “But it doesn’t pop out automatically. it’s really, really hard work to make sense of that data.” nick nyhan, digital coordinator and strategist for Kantar, says the ‘making sense’ aspect of research is where the future of the industry really lies; he thinks much of the meaning of real-time data only comes from putting it into context –and often the context of many years of other research. “That means that the critical skills in the market research industry are more in demand than they were before. it’s just that there’s more competition.” The expansion and diversification of the research industry is something that newcomers to the business say should be promoted at universities, where the range of opportunities that a research career can offer is still poorly understood. “Today’s books and courses don’t even talk about online research or qualitative research, so the perception that’s perpetuated is one Jo Bowman is an independent journalist based in the uK Rest of the world $ 12,242; 30% (+1) France $ 2,679; 7% USA $ 14,991; 37% (+2) Germany $ 3,468; 9% (+1) United Kingdom $ 5,065; 13% Other 16% (+1) Manufacturing Wholesale and retail 44% (-2) 5% (-1) Telecommunications 6% (+1) Financial services 6% Public sector 9% Media 14% (+1) Graph 4. Sources of research turnover 2013 (%) that’s far from reality –paper-and-pen research, and calling people up and doing surveys,” says Tanmay dhall, a qual research consultant with TnS in dubai and board member of Fringe Factory. Private-sector marketing and research programmes, such as those run by Coca-Cola and nielsen, are helping shed light on what the industry is really about, and some smaller agencies are becoming active at the university ‘milk rounds’ as they seek to attract sharp, talented graduates. dhall says young people’s perceptions of research are slowly changing: “There’s young blood in the industry which wants change and is working for it. if we can communicate the variety of career opportunities available, it will help us take a real step forward.” GLoBAL MARkET RESEARCh 2014 The only global analysis of market research spend an ESoMaR industry Report in cooperation with Bdo accountants advisors now in its 26th year, the report includes: • Global regional highlights and five-year trend data on 81 countries • Country-level breakdowns of sources of turnover, spend by research method, design and project type • Expert insights into the changing needs of research clients and agencies To see a preview and order the report, please go to www.esomar.org/publications. GloBal MaRKET RESEaRCH 2014 is free to ESoMaR members in PdF format and can be downloaded in the MyESoMaR section of the website.
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  • 55. RESEARCH CHALLENgE iSAAC ROgERS Doing More with More Multi-phase and hybrid studies yield greater depth While single-phase consumer engagement still has its place, a new trend in global marketing research is the rise of multi-part or hybrid research projects. 54 RESEARCH WORLD | September 2014
  • 56. prior feedback and revisit the ideas with the same participants who participated in the first sessions. as researchers, we can often forget how unusual the focus group environment can be for a respondent. a consumer is asked to visit an office in a building they’ve likely never entered, sit around a table surrounded by a handful of strangers and answer questions about products they use at home–all while glancing uncomfortably at reflections in a giant mirrored wall. While an effective moderator can alleviate much of this uneasiness, it can still be a tremen - dous challenge to develop rapport, present brand new concepts or ideas, moderate a lively discussion and cover all the primary topics in a 60- or 90-minute session. Most researchers will quickly admit that many, if not most, of their groups could benefit from more time in discussion. However, by the time the 90 minutes is up, some participants are nearing the end of their natural attention span, while others must return to their lives, jobs and families outside of market research. RESEARCH WORLD | September 2014 55 However, we don’t live in a strictly face-to- face world anymore. online qualitative research platforms afford any researcher a multitude of simple-to-use and flexible solutions to craft a custom hybrid project with relative ease. REAChiNG fURThER foR iNSiGhTS one key area where hybrid projects succeed is their ability to easily carry a conversation with consumers over an extended period of time. Historically, longitudinal qualitative projects were some of the most costly and difficult research methods. However, today’s digital techniques provide a tremendous advantage for longer term participant engagements. one of the most powerful applications of hybrid approaches couples a face-to-face session with a follow-up online discussion days or weeks after the focus group. This “debrief” session can often yield amazing new insights that weren’t captured in the first event. it allows researchers to refine concepts based on As greater and greater numbers of developed and semi-developed countries refine their internet infrastructures and services, digital research technologies are allowing more global researchers to engage consumers quickly, easily and affordably –at a variety of times, in a range of settings and long after they’ve left the focus group. one of the most effective strategies emerging today in global qualitative research is the rise of multi-part or hybrid research projects. Some researchers have found this to be their “secret weapon” for achieving the client goal of providing more insights, faster, while at the same time helping to keep project costs low. The basic concept of multi-modal research is fairly straightforward: instead of relying on a single phase of consumer engagement, such as a one- or two-hour focus group session, a researcher instead engages with the customer two or more times in a variety of formats. in the past, the concept of continuing the conversation after the focus group, or perhaps interviewing participants three or four times during different periods in their path to purchase, might have seemed like an impossibility. The cost and logistics of reconnecting with consumers in a strictly face-to-face world limited our ability to engage past a single focus group experience. “We can often forget how unusual the focus group environment can be for a respondent.”
  • 57. 56 RESEARCH WORLD | September 2014 unique habits. Rather than walking “cold” into a one-on-one interview with a stranger, the moderator and participant were able to continue their existing relationship during their first face-to-face chat. The level of rapport between them was high, as they’d spent the past two weeks engaging and getting to know one another in an online discussion. This allowed the researcher to engage in a frank and honest conversation with the participant on a topic that is, for some, a sensitive subject. in this case, the researcher felt the level of accuracy in the digital diary greatly exceeded a typical paper journal, and the hybrid approach meant a more comfortable discussion with the consumers in the face-to-face setting. A NEw DAy foR RESEARCh There’s a lot of talk in our industry around the challenges facing today’s researchers, much of it seeming to imply or assume that, as a group, we’re somehow unfit for the future. it seems some pundits want to argue that researchers aren’t up to the task and that our industry is forever stuck in the past. That’s not how i see it. From where i sit, i see a new day dawning for research. Every day, i see more and more researchers rising to action. Practitioners across the globe are realising that today’s digital tools, coupled with an existing mastery of research methods, allow them to gaze deeper into the consumer experience and uncover fresh new insights. With each bespoke project design, i’m seeing creativity flourish and renewed excitement in our industry. The one-size-fits- all mold is breaking, and a new age of mixed method, hybrid and truly custom-tailored design is upon us. participants will be willing and able to be contacted–for very little additional effort or incentive (typically, participants are paid less than 50% additional honoraria for the digital debrief). additionally, the cost of an online webcam group or bulletin board discussion is generally a small fraction of the overall project cost. CoNTExTUALiSiNG ThE PATh To PURChASE Hybrid qualitative methodologies are gaining traction as a way to develop an immersive understanding of the consumer path to purchase and a more direct mechanism to study real-world habits and practices. in the past, qualitative researchers struggled to adequately capture a broad consumer experience. Traditional single-phase research often consisted of a single interview or focus group in which the participants recounted a decision-making or buying process based largely on individual recall. Realising the shortcomings of relying on accurate depictions from consumer memory, qualitative researchers often relied on the paper diary or journal method to more adequately capture these events. But what happens when a researcher replaces that paper diary with a digital tool? Take, for example, a recent project in Southeast asia, in which the paper diary was replaced with a mobile-enabled qualitative discussion. For two weeks, 30 consumers documented each alcoholic beverage they purchased or consumed via a smartphone app, submitting hundreds of photos and videos that captured their purchase and consumption patterns. during that two-week data-gathering phase, participants could also log on to an online conversation in which the moderator created a rich dialogue about alcohol trends. after the two-week mobile data gathering phase, the consumers were invited to a mix of face-to-face sessions and online individual webcam interviews (depending on their proximity to a central facility). The moderator used the consumers’ individually generated content and their actual usage photos, videos and diaries to develop a custom-tailored conversation based on each individual’s This is where the debrief online session comes in. instead of bidding farewell to these respondents forever, you can instead enrol them in a three-day online bulletin-board discussion or invite them to a webcam group a few days or weeks after the focus group. You are provided an opportunity to hear from the consumers after the ideas presented in the groups have gestated. Researchers tell countless stories of product concepts that just didn’t get traction in the groups –yet after a few days’ thought, many participants begin to see benefits (or concerns) they hadn’t formulated during the short time in the focus group. The debrief sessions are a perfect opportunity to revisit key discussion topics that might have been short-changed in the live sessions. in effect, you are given a second chance to engage with these respondents and cover content that was skipped–or perhaps content that didn’t even exist–at the time of the first phase. How many times have you left a project wishing you could go back and ask each respondent a few more questions? How many times has your client come to you wanting to keep the respondents in the group just a few minutes longer? if you’re like most researchers, this is a frequent occurrence. The ease of joining one of these digital conversations means that most, if not all, isaac Rogers is chief innovation officer for 20|20 Research in the uSA
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  • 61. 60 RESEARCH WORLD | September 2014 Marco Jeurissen
  • 62. gLOBAL MARKET RESEARCH LAuREnCE n. gOLD ’ The world’s largest 25 marketing research firms experienced modest revenue growth in 2013, driven by syndicated services firms and held in check by changing currency exchange rates and flat revenue per employee. fEw fiRMS DRivE GRowTh What drove growth this year? Seven all or mostly syndicated firms –nielsen (including its acquisition arbitron), iMS, iRi, nPd, comScore, J.d. Power and Video Research–accounted for 58% of Top-25 revenues and had a combined growth rate of 4.1%. The balance of 18 firms grew by 2.5%, just above the 1.7% inflation rate. So syndicated firms primarily drove growth this year, supported by their long-term contracts. However, the differences are quite modest. not all Top-25 firms shared in the overall gain: 14 firms on this year’s list grew faster than inflation, the same number as last year, including just three that grew by double digits. of the 11 remaining, eight experienced actual revenue declines. in the past, smaller firms typically grew faster than larger firms, and this is true for 2013 as well. among the five top firms, Table 1: year-to-year Revenue Growth of Top-25 Research firms Currency Effects/After WW generic* + mA’s = Total inflation 2013 3.4% -0.1% 3.3% 2.0% 2012 2.6 NC 2.6 0.5 2011 4.1 1.6 5.7 3.0 2010 4.9 1.1 6.0 4.3 2009 -3.1 2.5 -0.6 -2.0 2008 3.9 2.9 6.8 3.5 2007 7.7 1.4 9.1 6.1 2006 5.1 3.5 8.6 6.4 2005 5.4 4.5 9.9 7.4 2004 4.8 1.1 5.9 3.4 * Generic excludes MAs (acquisitions or divestitures) and currency effects. Note: Growth rates based on home country currencies. RESEARCH WORLD | September 2014 61 Total growth of the Top 25 improved slightly over the prior year, up 3.3% in 2013 (vs. 2.6% in 2012), but remained well below the previous two years (at about 6% each, following recovery from the worldwide recession) as shown in Table 1. after adjusting for inflation, growth was reduced to 2.0% and 0.5% for 2013 and 2012 respectively, which together represents about a third of the growth of the prior two years combined. To understand why this happened, look to wide swings in currency exchange rates versus the dollar over the last two years. For example, the Japanese yen jumped nearly 24% and the Brazilean real increased over 10% compared to the dollar in 2013. Conversely, the euro dropped over 9% and the British pound declined nearly 2% versus the dollar in 2012. These swings, when netted out, served to depress the Top-25 firms’ total growth rate over the past two years. Mergers and acquisitions contributed as well, but much less than in the years 2005–2009, which showed total growth of nearly 10% per year. at the same time, currency fluctuations during those earlier years had much less effect than in the past two years. Still, Mas’ contribution to total growth was cancelled out by the negative effect of currency exchange rate changes. Generic growth, which strips away the effects of both currency fluctuations and Mas, reveals the underlying basic business direction of the Top 25. its growth for the last two years mirrors total growth but is less than years prior to 2012 when, with some exceptions, generic growth averaged 4% to over 5%. This current weakness reflects continued conservative research spending by corporate buyers caused by worldwide economic conditions: the slow recovery of the uS economy, a European economy mired in recession with continuing debt and banking problems, and slowing economies in asia Pacific markets.
  • 63. 62 RESEARCH WORLD | September 2014 with economic conditions in both Europe and the uS but nevertheless retained its 2nd place ranking. iMS is now reporting full-firm revenues, as revealed by its new listing on the nYSE, and moved to 3rd place. as a result, ipsos fell to 4th place and GfK to 5th place, each growing by less than 1%. iRi retained its 6th-place ranking, after moving up two places in 2012 with last year’s large organic growth. Westat, which experienced a 17% growth rate after being flat last year, moved up to 7th place with a large revenue gain. dunnhumby returned to the list this year with an 8th-place ranking, while inTaGE dropped two ranks to 9th due to large yen-to-dollar exchange rate changes. nPd held its 10th-place ranking. those with revenues over uS $1 billion each, revenues increased 3.0% organically (vs. 2.3% for the same firms last year). The balance of 20 smaller firms grew at 4.9% (compared with 4.3% a year ago). ToP 25 RANkiNG ChANGES Change in the rankings of Top-25 firms is a constant from year to year, and 2013 is no exception. among the 10 firms at the top of the rankings, nielsen once again kept hold on 1st place–a status unchanged since the list was first compiled–and accounted for 28% of the list’s revenues. Kantar, whose revenue increased 1.6%, continues to grapple Table 2: 2013 Top 25 Global Research organizations Organization Headquarters parent Research- global percent Revenues From Outside Country Only Research Change Full-time Revenues2 from Home Country Employees1 (uS$ millions) 20123 (uS$ in millions) Home Country Nielsen Holdings New York Netherlands USA 36.700 $6.045,0 4,0% $2.850,4 47,2% Nielsen Holdings New York Netherlands USA 35.400 5.569,0 3,9 2.844,2 51,1 Arbitron Columbia, Va. USA 1.300 476,0 5,8 6,2 1,3 Kantar* London Fairfield, Conn. U.K. 22.800 3.389,2 1,6 2.436,6 71,9 IMS Health Danbury, Conn, USA 10.000 2.544,0 6,1 1.609,0 63,2 Ipsos Paris France 15.536 2.274,2 0,8 2.116,9 93,1 GfK Nuremberg Germany 12.904 1.985,2 0,8 1.389,6 70,0 Information Resources Chicago USA 4.635 845,1 4,1 341,4 40,4 Westat Rockville, Md. USA 2.044 582,5 17,0 18,8 3,2 dunnhumby London U.K. 715 453,7 8,8 347,0 76,5 INTAGE Holdings** Tokyo Japan 2.527 435,5 6,5 24,2 5,6 The NPD Group Port Washington, N.Y. USA 1.282 287,7 5,4 85,4 29,7 comScore Reston, Va. USA 1.166 286,9 15,7 84,1 29,3 J.D. Power and Associates* Westlake Village, Calif. USA 738 258,3 2,5 85,4 33,1 IBOPE Group Sao Paulo Brazil 3.296 231,1 3,4 51,7 22,4 ICF International Fairfax, Va. USA 908 225,3 -6,0 53,3 23,7 Video Research** Tokyo Japan 414 204,0 -0,3 Symphony Health Solutions Horsham, Penn. USA 548 198,7 -1,3 2,2 1,1 Macromill Tokyo Japan 864 184,7 10,6 20,1 10,9 Maritz Research Fenton, Mo. USA 757 177,6 -6,0 38,7 21,8 Abt SRBI Cambridge, Mass. USA 1.138 172,8 -1,6 17,1 9,9 Decision Resources Group Burlington, Mass. USA 625 150,3 4,2 42,2 28,1 Harris Interactive New York USA 542 139,7 -0,7 53,6 38,4 ORC International Princeton, N.J. USA 494 122,0 -0,8 40,1 32,9 Mediametrie Paris France 705 106,1 2,0 14,9 14,0 You Gov London U.K. 524 101,4 6,0 71,3 70,3 Lieberman Research Worldwide Los Angeles USA 412 100,3 -1,5 32,3 32,2 Total 122.301 $21.501,3 3,4% $11.826,3 55,0% * Estimated. ** For fiscal year ending March 2014. 1 Includes some non-research employees 2 Total revenues that include non-research activities for some companies are significantly higher. 3 Rate of growth from year to year has been adjusted so as not to include revenue gains or losses from acquisitions or divestitures. Rate of growth is based on home country currency and excludes currency exchange effects and MAs.
  • 64. • ownership is more concentrated. This is primarily a consequence of amalgamation, the end result of hundreds of acquisitions made over many years in many countries. Eight firms, accounting for most of the Top-25 revenues, are publicly listed companies in the uS, uK, France, Germany and Japan. Four others are wholly owned subsidiaries of larger public or private companies, with the balance privately held by institutional investors, private equity firms or company founders/top executives. Two companies did not provide financial information (which was estimated for this report). whAT’S NExT foR ThE ToP 25? it is safe to assume the Top 25 will continue to grow in the near term, but at a rate one-third to one-half of that prior to the recession, given the persistently unsettled economic conditions that continue to prevail around the world. Still, demand exists for syndicated research firms as corporate buyers seek marketplace understanding. Where this leads the Top 25 in its longer term future is uncertain, given that spending for market research is partially discretionary and subject to continuing economic uncertainty. Both syndicated and overlapping media research will continue to be in demand, while the future of ad hoc survey research, subject as it is to the whims of corporate buyers, remains cloudy. Meanwhile, the Top 25 cautiously continues to adopt digital and big data, which could be the driver of market research in the future. Social media research has also been adopted by the Top- 25 firms, but how it will impact the future of these businesses remains unclear. Will Ma activity resume its pre-recession pace? in the past, Top-25 firms have turned to Mas when they wanted to increase their size. lately, however, they have concentrated on acquiring small firms to satisfy local requirements. Ma activity will contribute to growth when the big firms resume buying each other. Top-25 revenues were verified by each firm’s public record or third-party sources, generally outside accounting firms, following compilation by uS market research newsletter Inside Research. It was published in the American Marketing Association’s Marketing News-magazine this year in August. It also compiles MA activity in each of its issues. RESEARCH WORLD | September 2014 63 among the remaining 15, three firms moved up at least two ranks. Symphony Health Solutions moved from 19th to 16th place, helped by rapid spending increases in uS healthcare. oRC moved from 24th to 22nd with the full integration of its Marketing Research Services acquisition. J.d. Power regained its 12th-place ranking by fully recovering from revenue declines two years ago. Video Research moved down two places due to currency exchange rates, while lieberman Research fell four places to the bottom of the list due to both a decline in revenues and the fact that one of the new firms ranked above it on the list. decision Resources Group is the second firm new to the list. displaced was nikkei Research, whose revenues fell below the threshold, while arbitron become part of nielsen. MoRE ChANGES ThiS yEAR looking deeper into the Top 25 reveals the following not-so-apparent changes: • The qualifying threshold is higher. a 2013 ranking required revenue of uS $100 million, an increase of nearly uS $8 million over last year. For the eight years following 2000, the threshold ranged up and down between uS $42 million and uS $54 million, but in 2008 it began to rise to its present record high level, which will no doubt continue to rise in the future. • Mas declined. The number of Mas made by Top-25 firms declined in 2013 by 67% to 21 (vs. 31) the year before. The big acquisition in 2013 was nielsen’s buying arbitron, which accounted for about 75% of total Top-25 Ma revenue. (The top year for acquisitions was 2008, just before the start of of the worldwide recession.) acquisitions were mostly small in 2013, which trend is in keeping with most firms’ strategy of “backing and filling” internationally. The top five firms (excluding iMS, which did not reveal its acquisitions) made 14 of 21 Mas this year (or 67% of the total by count). Kantar led the list with six, followed by GfK with three and ipsos with two. nielsen also had two, including the big arbitron buy. • Productivity continues to be flat. in 2013, productivity averaged uS $176,000 in revenue per full-time employee. Productivity has been relatively flat over the last six years (despite a dip in 2009). More efficient and less costly software, more data collection via the internet and more business-focused management have all played a part. Laurence N. Gold is editor and publisher of Inside Research in the uSA acquisitions were mostly small in 2013, which trend is in keeping with most firms’ strategy of “backing and filling” internationally.
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  • 67. BOuNDARIES nOAH ROyCHOWDHuRy AnD niCHOLA kEnT-LEmOn Scouting for growth What is the best way to reach girls and young women for the World association of Girl Guides and Girl Scouts (WaGGGS) in Malaysia, Madagascar, oman, Poland and St. Vincent and the Grenadines? 66 RESEARCH WORLD | September 2014