Spending on Marketing Research Slumps Further in 2009

Smaller research firms hit harder in recession

CHICAGO, July 2 /PRNewswire-USNewswire/ -- Marketing research firms endured another challenging year in 2009, reports the American Marketing Association (AMA). Revenue in the commercial marketing/advertising/public opinion research services industry saw its biggest drop in two decades, according to AMA's Marketing News magazine in its annual Marketing Research Issue, published June 30, 2010.

At 3.5%, the 2009 decline in research revenue was even steeper than the previous year.  Adjusted for deflation, the decline was 3.1%, still 0.9% greater than 2008's inflation adjusted decline of 2.2%.

"These numbers show just how seriously the research industry has been impacted by the current recession," says Jack Honomichl, founder of the industry newsletter "Inside Research." Honomichl compiles an annual ranking of the top 50 research firms in the U.S., featured in the June 30 issue of Marketing News. This total industry analysis is based on 203 firms' aggregate revenue of $8.6 billion in 2009.

Another significant indicator the report points to is the number of firms showing revenue dips. Thirty of the top 50 firms profiled in 2009 had down revenues, whereas only 17 saw revenues fall in 2008. Not surprisingly, employment levels fell as well. Over the past two years, the marketing research industry has seen an 11.4% decline in full-time employees.  

But not all the news was grim. Nine of the top 50 firms - large database companies with Long-term contracts - showed no change in revenue. And one large firm, Westat, whose work comes almost exclusively from U.S. government agencies, saw a 7% boost in revenue.

In general, large companies fared better. Additional data from the Council of American Survey Research Organizations was provided for research firms not large enough to be included in the top 50. As a group, their revenue was down 8.5%, compared with an aggregate 7% for the 41 larger survey/qualitative research vendors included in the top 50.

"The smaller and more ad hoc a business is, the harder it was hit in this recession,"

Honomichl says.

The Nielsen Co., with just over $4.6 billion in research revenue, tops the annual Honomichl ranking, followed by Kantar, at just over $2.8 billion. More than half of the revenue of each of the top three firms came from outside the U.S. - an indication of the increasingly global nature of the industry.

Marketing News has featured the annual Honomichl ranking of the top 50 U.S. marketing research firms for more than 30 years. It will feature a special report on the top 25 international research firms, which Honomichl also compiles, in its Aug. 30, 2010 issue. For more information and to view the Honomichl Report, please visit www.MarketingPower.com/honomichl

About the Honomichl Top 50 Report

The Honomichl Top 50 business report covers the top players in the U.S. marketing research industry. Each company profile reviews the organization's leadership, revenues and continuing and new business interests. A chart detailing the top 50 organizations is also included for easy reference.

About the American Marketing Association

The American Marketing Association is the largest marketing association in North America.  It is a professional association for individuals involved in the practice, teaching and study of marketing worldwide. The AMA offers comprehensive, timely information and perspectives along with the resources, tools and connections to help our members flourish in their careers. American Marketing Association members are connected to a network of experienced marketers nearly 30,000 strong. For more information on the American Marketing Association, please visit www.MarketingPower.com.

Contact: Mary Rownd, American Marketing Association, 312-542-9088, [email protected]

SOURCE American Marketing Association