Fall 2011

GreenBook Research Industry Trends

Report

www.GreenBookBlog.org/GRIT

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  DEMOGRAPHICS

HEALTH AND MEDICAL

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DEMOGRAPHICS Children’s dates of birth Date of birth Education X Geographic region Hispanic Hispanic acculturation level Home ownership Internet connection Language Marital status X Number of children in household Occupation Parents expecting a child Race/Ethnicity State ZIP code

INTERNET AND TECHNOLOGY What activities are people doing online? Find out how, when, where, and why people get connected. INTERNET ACCESS LOCATIONS Business location Home Internet café Library School ONLINE BEHAVIOR Browser Flash-enabled computer X Hours per week Internet connection speed Online purchase frequency Online tenure Social networking Surf Internet frequency Wireless data function interest level COMPUTER Computer memory Processor speed X Operating systems ELECTRONICS AND MEDIA BlackBerry wireless device Cable TV CD player X Cellular phone Computer type Digital cable Digital camera DVD player (portable, auto) DVD/VCR combo player DVR (TiVo, other) X E-reader Gaming console HDTV Home security system Home theater iPhone LCD LED MP3 player Photo printer (types) Photo print frequency Plasma-screen TV Satellite dish Satellite radio Stand-alone DVD player Standard TV X Tablet (iPad) Video camera WiFi

ARKET RESEARCH MENU O N L ICNH OEO SM E F R O M M O R E T H A N 5 0 0 AT T R I B U T E S

DIET AND EXERCISE Blood pressure monitor Calories Carbohydrates Diet restrictions Diet type (vegan, vegetarian, meat eater) Eat ethnic food Frequency of exercise X Health and exercise attitudes Low fat diet Meat Sodium Sugar Watch diet MEDICAL AILMENTS X Allergies Alzheimer’s disease Anxiety Arthritis (several types) Asthma Athlete’s foot Attention deficit disorder Baldness/hair loss Bipoloar disorder Bladder ailments Cancer (several types) Chemotherapy Chronic back pain Cold sores Constipation/irregularity Crohn’s disease Depression X Diabetes types 1 and 2 Dialysis Eating disorders Female-associated ailments Food absorption problems Gingivitis/gum disease Hair loss X Headaches Hearing loss Heartburn Heart disease or angina Hemophilia Hepatitis Herpes High blood pressure High cholesterol HIV/AIDS Impotence/erectile dysfunction Incontinence Irritable bowel syndrome Joint pain Leukemia Migraines Multiple sclerosis Obesity Obsessive-compulsive disorder Organ transplant Ostco arthritis Osteoporosis Physical handicap Prescription anticoagulant Psoriasis Psoriatic arthirtis Restless leg syndrome Rheumatoid arthritis Rosacea Seizures Shingles Sinusitis Sleep difficulty Ulcerative colitis Ulcers Vision problems Yeast infections

X M O S T R E Q U E S T E D AT T R I B U T E S

PRODUCTS AND PURCHASES Purchasing habits offer insights into consumers’ preferences, lifestyles, and hobbies. Find out what they buy and how they shop. BEAUTY QVC HSN Sephora X Ulta Pure Beauty Bath & Body Works Victoria’s Secret Mary Kay CONVENIENCE 76 Conoco / Phillips66 7-Eleven AM PM BP Amoco Casey Chevron Texaco CircleK Cumberland Farms Exxon Mobile On the Run Holiday Station Kwik Trip Quick Trip RaceTrac RaceWay Sheetz Shell Speedway Super America Wawa DISCOUNT Big Lots Kmart Sam’s Club Super Kmart Super Target Target Walmart Shopko DOLLAR STORE Dollar Tree Family Dollar Dollar General FLORAL Bedding plants Bulbs Bushes/trees Freshly cut Perennial outdoor Plants (indoor/outdoor) Seeds

LIFESTYLE AND ACTIVITIES Learn how people with different lifestyles spend their leisure time, ranging from organized activities to weekend entertainment. TRAVEL Air travel - leisure/business Cruise - leisure/business X Frequent-flyer member Hotel - leisure/business Hotel loyalty Rental car - leisure business PETS X Cat Dog

GROCERY NETWORK Kroger Delhaize Safeway Supervalu Ahold X GROCERY Acme Albertsons Bakers Basha’s Biggs Bilo Bloom Bodegas Bottom Dollar Food Bristol Farms Bruno’s Carrs City Market Cub Foods Dillons Dominick’s Farm Fresh Food Co Food 4 Less Food Lion Fred Meyer Frys Genuardi’s Gerbes Giant Eagle Giant Food Hanna Ford Harveys Heb Heinen’s Hilander Hornbachers Ingles Markets Jay C Food Jewel King Soopers Kroger Lucky Marsh Supermarkets Martins Meijer Owens Pathmark Pavilions Payless Publix QFC Ralphs Randalls Roundy’s Safeway Save A Lot Scotts Food

Shaw Star Shaws Shop N Save Shoppers Food Shoprite Smith’s Food Stop N Shop Sunflower Supervalu Sweetbay Kash N Karry Tom Thumb Tops Trader Joe’s Vons Wakefern Wegmans Weis Whole Foods Wild Oats HOUSEHOLD PRODUCTS Air fresheners Aluminum foil Batteries (type/frequency) Battery operated toothbrushes Candles Charcoal Clear plastic wrap Cloth diapers Colored paper baking cups Disposable diapers Greeting cards Kid’s vitamins Motor oil Oven bags Paper products (toilet paper, napkins, paper towels, baking cups) Pet food type (natural, organic, reg.) Plastic food storage bags Scented candles Tobacco (regular and smokeless) Vitamins (or multivitamins) Water filters Wax paper PERSONAL CARE Contraceptives Cough syrup Dental care products Eye/contact lens care products Eyewear (glasses/contact lenses) Feminine care products (pads, panty liners) Foot care products Haircut kit Hearing aid Incontinence pads/garments Laxatives Teeth whitening

RETAIL Banana Republic Dillards Express H&M HSN JCPenney JCrew Kohl’s Limited LLBean Macy’s Mays Neiman Marcus Nordstrom Old Navy Patagonia Ross Saks Sears Steinmart The Gap RETAIL STORES Clothes specialty Club Convenience store Department Discount Dollar/Drug X Grocery/Grocery net Specialty SPECIALTY Amazon Advance Auto Autozone Barnes & Noble Bed Bath & Beyond Best Buy Borders Circuit City Foot Locker GapBody Home Depot Lowe’s Office Depot Office Max Payless Shoes PepBoys Petco Petsmart Radio Shack REI Staples Toys “R” Us

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FINANCIAL SERVICES

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BEVERAGE CONSUMPTION AND PURCHASES Beer X Champagne Cocktail mixers X Coffee Distilled spirits Energy drinks Flavored beverages Gin Hard cider Hot cocoa Instant tea mixes Mixed drinks Rum Soy milk Tea Tequila Vitamin-enhanced waters Vodka Whiskey X Wine

BUSINESS AND INDUSTRY Reach a variety of individuals inside and outside the workforce or those who work in a specialized area of expertise. BUSINESS AND OCCUPATION Area of business responsibility Biotech Business travel X Company annual revenue Company private/public Company type (e.g., government, Fortune 500) Employment status Healthcare administration Industry Level of involvement in Making business decisions X Number of employees Number of personal computers Number of servers Occupation title Profession/functional work area Small business ownership

FOOD PURCHASES Baby food/formula X Bread/bagels Breakfast foods X Cereal (including types) Energy and cereal bars Fresh baked goods Frozen baked goods Frozen fruit Frozen meals Organic foods Refrigerated or frozen foods Roasted meat Salsa Soy-based products Steak Yogurt

INFORMATION TECHNOLOGY (IT) Obtain the opinion of IT decision makers in companies of all sizes. IT JOB FUNCTION Application architect Computer, IT, and management Computer networking Database/data management Decision-maker outside IT department X Developer Developer for commercial software Developer for custom software/ hardware Developer in IT department, internal Developer in IT department, other industry Enterprise resource planning implementation X Information systems, IT Install/maintain hardware/software IT job function in IT department IT job function outside IT department Make recommendations, not decision-maker Software development Software quality assurance System security Technical client service specialist Telecommunications Technical writer Web development

RESTAURANT NAME A&W Applebee’s Burger King Carl’s Jr. Chili’s Chipotle Dairy Queen Domino’s Hardee’s IHOP Jack in the Box KFC Long John Silver’s Macaroni Grill McDonald’s Olive Garden Outback Steakhouse Panda Express Pizza Hut Popeyes Quiznos Red Lobster Round Table Pizza SONIC Starbucks Subway Taco Bell TGI Friday’s Wendy’s

PERSONAL FINANCIAL SERVICES X Credit card company Debit card company Household savings and investments American Express Bank of America Capital One CitiBank Discover HSBC X PRIMARY BANK Bank of America (including Countrywide) BB&T Capital One Bank (including Chevy Chase) Citibank Citizens Bank (Royal Bank of Scotland) Comerica Credit Union (Any) Fifth Third HSBC Huntington JPMorgan Chase (including Washington Mutual) Keybank M&T Bank PNC (including National City) Regions Sovereign SunTrust Bank TD Bank (including Commerce) Union Bank U.S. Bank Wells Fargo (including Wachovia)

HOME AND VEHICLES From the urban apartment dweller to the suburban homeowner, we’ve profiled our panel on everything from residence type to car, boat, and motorcycle ownership. HOME Bathroom ventilation Central vacuum X Home owners X Lawn care Lawn fertizer Outdoor grill X Home renters VEHICLES All-terrain vehicle ownership Auto DVD X Auto (make, model, new/used, segment) Auto, number in household Auto, purchased/leased Auto, purchase intent (plan to acquire/ model) Boat ownership Motorcycle (make, model, new/used, segment) Motorcycle, number in household Motorcycle, purchased/leased Snowmobile ownership

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Fall 2011

Table of Contents GRIT Report – Fall 2011 The full version of the report that includes additional charts is available at www.GreenBookBlog.org/GRIT

Introduction

3

Detailed Findings Methodology and Sample Financial Outlook Technology Use and Adoption Industry Changes Human Capital Strategies Industry Branding Most Influential Organizations

4 5 8 12 16 17 18

Implications

23

Acknowledgments

24

Partners GreenBook® Media Partners Research & Production Partners

25 26 27

Appendixes Demographics & Firmographics Staffing Changes Industry Branding Industry Changes Organizational Ratings Technology Usage & Opinions

www.greenbook.org

1

Millions of panelists...

...only one you. Across the world, we give you access to over 6 million panelists. But right now, when you’re talking to us about sample and data collection we only think about one person. You. We put our clients at the heart of everything we do, treating every project as a priority, ensuring you get the answers you want. Maybe that’s why 95% of the world’s top research companies use us. So while we’re talking to millions of panelists about their buying behavior, their preferences and their motivations, there’s one person whose opinion matters most. Yes, you.

www.researchnow.com

2

GreenBook Research consumer • B2B • healthcare • social media

Industry Trends

Fall 2011

Introduction It’s that time again folks! I am very proud to present

Another area of exploration in this wave was the

(GRIT) Q3/Q4 Report. This is the 10 Edition of GRIT

media platforms. The results of this inquiry are

to you the 2011 GreenBook Research Industry Trends th

and the study has become one of the most important sources of information on trends within the global market research industry.

In addition to key issues that have been trended

since the initial 2003 study, we focused on research

level of influence of trade organizations vs. new

very revealing and indicate that during this time of transition no clear organizational leader has

emerged to help shepherd the industry through this paradigm shift.

I hope that you’ll join me in heartfelt appreciation

technology, anticipated staffing characteristics

for the contributions of our sponsors for this wave:

methodologies and business models. Specific

Forecasts, Market Research Global Alliance, Decooda,

and skill sets, and changes to marketing research probes on influential and/or authoritative industry organizations were also included. We investigated spending levels, the overall levels of optimism vs.

trepidation, and how the industry perceives and is

The American Marketing Association, Surveys &

Brand3Sixty, Decipher, OdinText, Next Gen Market

Research, iPinion, Netbase, and Anderson Analytics. Their hard work makes GRIT possible.

I think you’ll find the report informative,

reacting to change. Even the moniker “marketing

provocative, and useful. Enjoy!

wave, along with the standard complement of

Leonard F. Murphy

research” itself was a subject of this most recent annual GRIT tracking questions.

There has been a lot of debate about whether

new technology adoption within market research,

Chief Editor & Principal Consultant | GreenBook www.greenbookblog.org [email protected]

especially mobile and social media, is over hyped.

The latest data from GRIT tells us that although some techniques may be over-hyped when compared to

current or planned adoption, that is unarguably NOT the case with mobile, MROCs, social media research, and text analytics.

To receive an invitation to participate in the next round of GRIT or to be notified when the next Report is available, please register at www.GreenBookBlog.org/GRIT

www.greenbook.org

3

Methodology and Sample

RESPONDENT TYPES

Respondent Types 60%

40% 30%

As in prior waves, email invitations were sent to

individuals randomly selected from co-sponsors’

internal lists of research providers and clients. As an

20% 10% 0%

incentive, respondents were offered a complimentary copy of the 2011 edition of the GreenBook Marketing

Research Directory. From these invitations, a total of

1,008 usable responses were obtained. For reference, the historical respondent mix is displayed, with the percent of respondents from full-service providers

narrow bands since 2007.

Given our larger sample, the total overall billings

represented by responding companies is significantly higher than the 2010 waves. While the United

States comprises the bulk of respondents (67%) in this research, it is certainly worth noting that the historical trend in terms of the research dollars

accounted for from outside the US only continues to

rise, now at 35% of total spending – and this appears to grow over time.

44%

43%

43%

21% 15% 11%

46%

43%

48%

41%

36% 22%

18% 14%18% 12% 6% 5% 7% 5% 4%

18% 13% 9% 7% 4%

20% 15% 12%

2003

2005

2006

2004

7% 3%

7% 3% 2007

24%

26%

13% 10%

14% 11%

4% 3% 2008

4% 2009

21% 17% 10%

26%

23%

16% 10%14% 9% 6%

3% 2% 2010S

43%

3% 2010F

Full-service providers

Research consultancy

Academic/non-profit/medical

Data Collection (Quant/Qual)

Research client/buyer

Advertising agency

3% 2011

US AND GLOBAL MARKETS SERVED

U.S. and Global Markets Served

(at 43%), academic researchers (at 23%) and research clients/buyers (at 16%) all hovering in relatively

50%

50%

100%

Millions 431

720

336

4%

600

3%

366

5%

90% 80%

70%

47%

65%

53%

55%

60%

57%

284

512

11%

12%

53%

53%

709

19%

666

1008

32%

35%

22%

19%

43%

46%

46%

S2010

F2010

2011

38%

50% 40% 30% 20%

53% 35%

43%

42%

38%

36%

35%

2005

2006

2007

2008

2009

10% 0%

2003

2004

Only in US

Both Inside and Inside US

Only Outside US

ANNUAL BILLINGS/BUDGETS ($US)

Annual Billings/Budgets ($US) 1000

Less than $1M

$1M - $4.9 M

$5M or More 1008

900 800

262

700

649

600

512

500

148

400 300 200 100 0

4

241

282

284

66 88

88

128

122

2007

2008

74

548

202

143 155

138

179

226

229

250

2009

2010S

2010F

464

2011

GreenBook Research Industry Trends

Fall 2011

Financial Outlook

The previous (Fall 2010) GreenBook Research Industry Trends study exposed structural and systemic

WILL SPENDING/DEMAND

Will EXCEED spending/demand exceed last year? LAST YEAR?

changes faced by today’s marketing researchers,

notably (1) worrisome attitudes and beliefs about the

70%

Yes

59%

marketing research profession, (2) concern about the

ability to keep up with the rapid pace of technological change, and (3) a growing tension between desired quality of work and the need for speed. Despite

23%

No

34%

this recent professional pessimism, the levels of

2011

anticipated research budgets/spending are positive. Fully 70% of the overall sample indicate that they

expect spending/demand to increase this year – up

7%

+11 points from Fall 2010. The figure is lower for

buyers/clients, at 60% – but 73% of providers expect

0%

their numbers to be better than last year.

2010F

6%

DK/Refused

10%

20%

30%

40%

50%

60%

70%

80%

Revenue expectations are holding steady, with 54%

either expecting or experiencing stronger growth in 2011 than a year ago. Overall, 54% indicate that

they are either experiencing or expecting stronger

70% of respondents indicate that they expect

revenue in 2011 (versus 59% in the Fall of 2010).

spending/demand to increase this year

Actual or expected revenue growth is significantly

higher among providers/suppliers (58%) than among buyers/clients (38%). We see corroborating evidence of this on the supplier side, with industry monitors reporting revenue growth over 2010.

WILL SPENDING/DEMAND 2010? Will EXCEED spending/demand exceed 2010? 60%

Yes

73%

34%

No

20%

6%

DK/Refused

Research provider or supplier

7%

0%

www.greenbook.org

Research buyer or client

10%

20%

30%

40%

50%

60%

70%

80%

5

Financial Outlook (cont’d)

REVENUE/SPENDING EXPECTATIONS Revenue/Spending Expectations 54% 59%

Expect/Experiencing More (Net) 30% 32%

EXPERIENCING stronger revenue/spending

24% 27%

Expect INCREASING revenue/spending Expect CURRENT levels of revenue/spending

36% 30% 10% 10%

Expect DECLINE in revenue/spending 0% 2011

10% 20% 30% 40% 50% 60% 70% 2010F

Expected revenue growth is higher among

REVENUE/SPENDING EXPECTATIONS

providers/suppliers than among buyers/clients

Revenue/Spending Expectations 38%

Expect/Experiencing More (Net) 21%

EXPERIENCING stronger revenue/spending

17%

Expect INCREASING revenue/spending Expect CURRENT levels of revenue/spending

9% 0%

Research buyer or client 6

32%

26%

33%

Expect DECLINE in revenue/spending

58%

48%

14%

10% 20% 30% 40% 50% 60% 70% Research provider or supplier GreenBook Research Industry Trends

Fall 2011

www.greenbook.org

7

Technology Use and Adoption

As we saw in 2010, widespread experimentation

What is also interesting is that these finding were

the “techniques” ever used, the top items include

use; meaning that participants in the study are

with new research technology continues apace. Of

consistent with the 2010 results on projected

online communities (aka MROCs) at 35%, data mining (32%), social media analytics (29%), text analytics

(22%), and mobile research (at 21%). Interestingly,

buyers/clients are leading the way here, with higher

levels observed for online communities, social media

following through with their implementation plans and are aggressively adopting new techniques to

at least supplement and possibly to replace more traditional methods.

analytics, data mining, and text analytics.

Top “new” techniques ever used include online communities, data mining, social media analytics, text analytics, and mobile research

RESEARCH TECHNIQUES EVER USED

Research Techniques Ever Used

35% 34% 32%

Online Communities Data mining Social Media Analytics Text Analytics Mobile Surveys Webcam-Based Interviews Apps based research Eye Tracking Mobile Qualitative Mobile Ethnography Visualization Analytics Predictive Markets Crowdsourcing Virtual Environments NeuroMarketing Biometric Response Serious Games

11% 11% 11% 10% 8% 10% 9% 10% 10% 10% 10% 7% 7% 6% 9% 5% 6% 4% 5% 2% 2%

0% 8

10%

16% 18%

22% 22% 21% 22%

29% 28%

17%

2011 2010F

20%

30%

40%

50%

GreenBook Research Industry Trends

Fall 2011

As traditional sources of respondents for consumer panels

The big news for 2012 will be the massive growth (in many cases

attrition standpoint), clients and suppliers must apply new

MROCs, data mining, mobile (both quant and qual approaches),

become more problematic (i.e., from a recruiting and

methods to extract consumer insights and bridge the gaps

between traditional and new modalities. Despite the more

almost doubling from 2011 levels) of social media analytics, and text analytics.

In almost all cases client-side researchers are leading with

aggressive adoption of social media, mobile apps, and online

utilizing these techniques, with suppliers lagging behind

neuromarketing, virtual environments, crowdsourcing,

This indicates that possibly buyers will be centering their

communities, far less use is seen for serious gaming, biometrics, predictive markets, and visualization analytics. Less than 10% of buyers or suppliers predict they will use these methods in the

near future, relegating them to very niche positions within the broader industry.

in their adoption (and therefore offering) these techniques. relationships around vendors who can offer these methods, and it is likely that in many cases that means they will be working with non-traditional suppliers, many of which may not even consider themselves within the market research space. This is certainly in line with current thinking of many industry

leaders about the emergence of new competitive forces that are encroaching upon the traditional “insights” field.

In 2012, we’ll see massive growth of social

The chart below shows the projected usage of emerging

media analytics, MROCs, data mining,

techniques in 2012.

mobile, and text analytics

FUTURE USE OF RESEARCH Future TECHNIQUES Use of Research Techniques Social Media Analytics Online Communities Data Mining Mobile Surveys Text Analytics "Apps" based research Webcam-Based Interviews Mobile Qualitative Mobile Ethnography Prediction Markets Eye Tracking Visualization Analytics Crowdsourcing NeuroMarketing Virtual Environments Biometric Response Serious Games

39% 31%

37%

34% 31%

46%

41%

22% 23% 22% 26% 22% 28% 20% 24% 18%

1%

0% www.greenbook.org

41%

52% 52%

14% 16% 13% 13% 14% 12% 13% 10% 9% 8% 12% 6% 6%

Research buyer or client Research provider or supplier

6%

10%

20%

30%

40%

50%

60% 9

Technology Use and Adoption (cont’d) As part of our GRIT study, a parallel social

As you can see from the charts, the amount of

association with NetBase, a study co-sponsor.

Mining, Social Media Analytics, Text Analytics, and

media analytics study was also conducted, in

buzz associated with Online Communities, Data

For this exercise, NetBase used their social media

Mobile Surveys is proportionate to the percentage

monitoring platform to search public websites for

relationships seen in our GRIT sample (i.e.,

comments about emerging methods – specifically,

those who indicated that they have used these

the frequency with which emerging methods

technologies in the past).

terms appear, and the sentiment (positive or

However, there is more buzz than actual use for

negative) associated with each one.  The intent

Eye Tracking, Crowdsourcing, Virtual Environments,

influencers” differ from self-reported feedback

Games – that is, there is a lot of chatter about these

of this analysis is to understand whether “online

NeuroMarketing, Biometric Response, and Serious

based on industry research, such as GRIT.

methods, yet little use to date (most are well under 10%). This indicates that marketing researchers are

certainly thinking and talking about a multitude of

emerging technologies, but have yet to figure out the ways in which they can implement many of them for

Client-side researchers are leading with utilizing these “new”

marketing insights and business guidance.

techniques, with suppliers lagging behind with their offerings

ACTUAL USE VS. WEB BUZZ

Actual Use vs. Web Buzz

Online Communities Data mining Social Media Analytics Text Analytics Mobile Surveys Webcam-Based Interviews Eye Tracking Apps based research Visualization Analytics Predictive Markets Mobile Qualitative Mobile Ethnography Crowdsourcing Virtual Environments NeuroMarketing Biometrics/Biometric Response Serious Games

32% 29% 22% 21%

157

99

27

254

11% 11% 2

10% 10% 10%

10%

1187

8

16%

3 0 1

Ever Used Buzz Count - Log Scale 2252

7%

547

6%

121

5%

1687

4% 365

2%

0% 10

3904

35%

10%

20%

30%

40%

50%

GreenBook Research Industry Trends

Fall 2011

To understand this a bit better, NetBase also

We read this as although there may be a

Passion Index” for each of these emerging

methods which have strong adherents or fans but

produces a quadrant map showing the “Brand

disproportionate amount of “buzz” for some

technologies. Here we see that most of emerging

methods captured by the buzz algorithm are viewed favorably – at least in terms of liking – but that the two that seem to be most loved are Mobile Surveys and Facial Tracking/Scanning. Mobile Surveys are

one of the methods used most by our respondents (Facial Scanning was not asked in our list, but

will be included in future waves). One emerging

method was associated with more negative buzz:

Neuromarketing – a method used by few (just 5%) in our GRIT study.

little widespread usage, in most cases there is no

“tail wagging the dog” phenomenon; the share of discussion around mobile, MROCs, social media

research, etc.. is earned buzz. Researchers are using

these techniques, are discussing their results online,

and are planning to do more with these technologies in the near future as a result.  Of course this positive word-of-mouth is influencing others to try these

techniques, but we see a distinct transition from early adopters to mainstream usage in 2012.

These changes will have a profound impact on all

aspects of the market research industry globally.

Researchers have yet to figure out the ways in which they can implement many of the emerging technologies

Brand Passion Index

+

Like

Love Agent Based Modeling Text Analytics

Sentiment Range

Social Media Analytics

Eye Tracking

Facial Tracking

Online Communities

Advanced Analytics

Mobile Survey

Virtual Environments Crowdsourcing

Biometrics Netnography Serious Games

Big Data

Webcam Based Interviewing

Data Mining

Neuromarketing

Hate

Dislike

– www.greenbook.org

Passion Intensity 11

Industry Changes CHANGE EXPECTED – 2011 VS. FALL 2010 Change Expected – 2011 vs. Fall 2010 68% 64%

Significant Change (Net) 5% 7%

Tremendous

28% 25%

A lot

35% 32%

Quite a bit

30% 33%

Some

2010F

2% 4%

Very little 0%

20%

63% of researchers feel that coming industry changes bring more promise than threat

2011

40%

60%

80%

Regardless of buyer or supplier, significant change

is anticipated in the marketing research industry in the next five years (68% say either say “quite a bit”,

“a lot”, or “tremendous” – up from 64% in Fall 2010).

However, reaction to anticipated changes is positive, with relatively few viewing them as “threats” to their livelihood.

In fact, 63% feel that coming industry changes

bring more promise than threat; research buyers are

even more sanguine, at 75%. Just 12% feel otherwise – virtually unchanged from the 2010 Fall wave.

12

GreenBook Research Industry Trends

Fall 2011

REACTION TO INDUSTRY CHANGE Reaction to Industry Change 63% 62%

Promise (Net)

16% 16% 23% 20% 24% 26%

What threat? I'm excited for my future and can't wait I see much more promise than threat I see more promise than threat

24% 25%

I see equal measures of threat and promise

12% 11%

Threat (Net)

5% 7% 4% 3% 3% 1%

I see more threat than promise I see these changes as much more threat than promise What promise? These things threaten our industry and my job.

0%

When probed in more detail and analyzed using

the Decooda Text Analytics platform for contextual

categories and theme clustering , the most promising

2011

2010F 20%

40%

60%

80%

Most marketing researchers agree that they need to morph into business strategists or they will perish

trends mentioned (open-ended basis) included

social media (14%), advanced research methods

(14%), mobile research (12%), and data mining and modeling (9%). Conversely, the trends seen as

threats include lack of industry skills when it comes to resources, methods, or tools (16%), the use of

self-serve tools (14%), social media replacing survey methods (14%), and a general lack of knowledge

about new research methodologies or technological change (10%).

www.greenbook.org

13

Industry Changes (cont’d) l Media Socia

The Drivers of Optimism & Fear

Modeling

&

A

eF

is

Da ta

lys na

M

, ing n i

uture

Research Me d e c tho an ds v d A bile Research o M

N

-im on

Thr

or

pactful Resea rc h

Ho

pe

f

D IY

ea

ts

to

Future e th

th

Online Research

F

ly ree

nological

ac u

en

La ck

ech ft

m

o

available d ata

New competitors

14

GreenBook Research Industry Trends

Fall 2011

With new technology, there is the potential for

hyperbole and exaggeration; to better understand reactions to some of the claims being made in our industry, we asked our respondents to react to

statements about “radical changes in marketing research methodologies and business models”.

On a five-point scale (anchored at the low end by

“Wildly Exaggerated” and at the high end by “Spot On”), we find the highest top-two box agreement

for marketing researchers needing to “morph into

business strategists or perish” at 55%. There is slight

agreement with “All broadly based consumer studies should include data collection using mobile devices”

– just 25%. All of the other statements we asked were seen as being significantly exaggerated, including:

• Sampling and projecting to larger populations is no longer relevant

when communications between brand and consumer can be one to one (67% “Exaggerated”)

• Traditional quantitative research: conducting interviews via phone/

online or in person to gather opinions and report findings is dying and will be irrelevant in the next 5 years (68% “Exaggerated”)

• Mastery of traditional marketing research skills such as statistical

analysis, study design, and astute field management is no longer the key to success in the industry (64% “Exaggerated”

• Researching on the internet and with automated online services is

now so easy that there will soon be no demand for marketing research expertise from clients willing to pay (69% “Exaggerated”)

• Data is so readily available that business intelligence applications will

replace marketing research functions. Primary research will be relegated to a niche activity within the marketing function (57% “Exaggerated”)

Opinion About Changes to Opinion About Changes to Marketing Research Methods Marketing Research Methods Marketing researchers must morph into business strategists or perish

17% 25%

All broadly based consumer studies should include data collection using mobile devices Mastery of traditional marketing research skills is no longer the key to success in the industry

16%

Data is so readily available that business intelligence applications will replace marketing research functions

16%

Conducting interviews via phone/online or in person is dying and will be irrelevant in 5 years Sampling and projecting to larger populations is no longer relevant Researching is so easy, soon no demand for marketing research expertise

Top Two ("Spot On") Bottom Two ("Wildly Exaggerated") www.greenbook.org

55%

14% 13% 12%

47% 64% 56% 68% 67% 69%

0% 10% 20% 30% 40% 50% 60% 70% 80% 15

Human Capital Strategies

A new question in the 2011 survey focused on the changes expected in the

A word cloud analysis using a combination of coded

the results are quite dramatic – respondents anticipate a strong need for

of the open-ended comments following the above

kinds of people working in the respondent’s organization in the future. Here more “social media experts” in their organization (53%), more “marketing strategists” (46%), more “data integration experts” (40%) and “more

experts in the mechanics and technologies of data collection” (39%). The

need for more social media experts is equally strong regardless of buyer or supplier side, whereas there is a stronger anticipated need for marketing strategists, business strategists, and data integration experts on the

verbatims as well as text analytics derived themes question (“What changes do you expect to see in

the kinds of people working in your organization in the future?”) shows the somewhat bi-modal

nature of anticipated changes in staffing – notably social scientists (e.g., psychologists) and those who can synthesize this information into usable data

CHANGES IN STAFFING: MORE (e.g., data jocks, for marketing% decision-making

buyer side, versus a greater need for data collection experts, multi-lingual employees, and sociologists and anthropologists on the supplier side.

developers, and designers).

Changes in Staffing (% more) The need for more social media experts is equally strong among both buyers and suppliers

Social Media Experts

53%

Marketing Strategists

46%

Data Integration Experts

40%

Experts In Data Collection

39%

Business Strategists

32%

Bilingual/Poly-Lingual Employees

30%

Sociologists/Anthropologists

23%

Process/Supply Chain) Strategists

10%

Field Interviewers

7% 0%

20%

40%

60%

Total

16

GreenBook Research Industry Trends

Fall 2011

Industry Branding

When asked if the term “Marketing Research” still

than any others. Here, clients and suppliers were

come for a more inclusive descriptor, most believe

to mention “Market Intelligence” at 10%. There has

represented the entire industry, or if the time had that it still applies. Suppliers are more favorable (60% say “Yes”) than are clients/buyers (48%),

perhaps because more client research departments already have alternative terms that they are using today. Among those who said “No”, terms offered

on an open-ended basis were limited to “Consumer Insights” (39%) and “Market Research” (34%) more

largely in agreement, with clients a bit more likely always been a bit of a schism between the terms

“Market Research” and “Marketing Research”, the

latter generally considered more inclusive, including study of the marketing function and associated

processes. Hence it is somewhat surprising to see “Market Research” emerge here as a suggested alternative term.

Most believe that the term “Marketing Research”

IS "MARKETING RESEARCH" AN ACCURATE INDUSTRY DESCRIPTOR? still applies and represents the industry

Is “Marketing Research” an Accurate Industry Descriptor? 48%

Yes!

60%

Research buyer or client Research provider or supplier 52%

No!

40%

0%

10%

www.greenbook.org

20%

30%

40%

50%

60%

70% 17

Most Influential Organizations

When asked “What professional and/or trade

AMA is almost diametrically opposite from their

research industry do you belong to?”, we obtained a

The same could be said about GreenBook as well

associations relevant to the marketing or marketing highly fragmented list of names/acronyms, and that may be heavily influenced by sample composition, as well as events occurring at the time of data

collection. That said, the results are counter-intuitive to the sample composition which was broken down

as 33% from GreenBook, 26% from NGMR, 22% from MRGA, 15% from AMA and the remainder across the other sponsors. The low sample contribution from

ranking within the reach and influence questions. since they were the largest sample contributor but yet had a relatively low reach score. This seems to indicate that although some sample bias may be

possible, the respondents answered the questions honestly and that the data serves as an accurate barometer of the level of reach and influence of each organization.

NetBase Buzz: Industry Associations

NetBase Buzz: Industry Associations American Mktg Assoc (AMA) World Advertising Rsrch Center (WARC) American Economic Assoc (AEA) Life Insurance Mktg & Rsrch (LIMRA) American Statistical Assoc (ASA) ESOMAR Advertising Rsrch Foundation (ARF) Mktg Rsrch Assoc (MRA) Royal Statistical Society (RSS)

Qualitative Rsrch Consultants Assoc (QRCA) Society of Competitive Intelligence Prof (SCIP) Australian Market & Social Rsrch Society (AMSRS) Council of American Survey Rsrch Org (CASRO) Mystery Shopping Providers Assoc (MSPA) Market Rsrch Society (MRS) BaQMAR American Assoc for Public Opinion Rsrch (AAPOR) Canadian Mktg Assoc (CMA)

18

151 151 56 39 38 34 31 20 15 14 14 14 10 10 9 7 Buzz Count 7 - Log Scale 6

GreenBook Research Industry Trends

Fall 2011

Influence Ratings

Influence Ratings

6.73 6.64 6.60 6.49 6.42 6.39 6.24 6.16 5.76 5.75 5.73 5.67 5.61 5.51 5.48 5.45 5.11 Mean Rating 4.95 4.54 4.45

AAPOR (n=33) Greenbook (n=22) ESOMAR (n=174) QRCA (n=63) Quirks (n=24) CASRO (n=97) NewMR (n=25) IIR (n=19) ARF (n=51) MRA (n=183) Twitter (n=26) PMRG (n=24) AMA (n=357) MRS (n=53) LinkedIn (n=264) NGMR (n=96) AMSRS (n=19) MRIA (n=38) MRGA (n=39) Facebook (n=49) 0.0

1.0

2.0

3.0

4.0

5.0

6.0

The organizations most often mentioned by our

fuzzy at best. We anticipated that issue so we asked a

(21%), ESOMAR (20%), CASRO (10%), QRCA (8%),

our participants paid attention to or followed.

study respondents include the AMA (at 44%), MRA MRS (7%), MRIA (5%), AAPOR (4%), ARF (4%), NGMR (3%), AMSRS (3%), and PMRG (2%). In many cases

there was a significant delta between clients and suppliers in terms of association membership,

although considering the nature of many of these organizations that was not surprising in itself.

What is interesting about this list is the relatively

large number of people who counted NGMR, a

LinkedIn discussion group, as a trade organization.

This seems to indicate that the value proposition of

trade associations compared to new media players is www.greenbook.org

7.0

8.0

follow-up question on what events, blogs, or Groups LinkedIn emerged as the clear leader with 44%,

followed by NGMR again (13%), AMA (10%), ESOMAR (7%), Facebook (8%), MRA (7%), MRGA (7%), CASRO

(6%), ARF (4%) and GreenBook (4%). Notice that there is significant overlap between the two lists and a

pronounced divergence between client and supplier participants yet again. Our analysis is that although clearly associations are being followed, new media outlets and groups are assuming a strong role in influencing decision makers.

19

Most Influential Organizations (cont’d) We obtained NetBase buzz counts on this question as

strategic decision making using an 11 point scaled

membership (listed above), and internet buzz as

as mentioned earlier, they seem to validate the lack

well, and see divergence between the self-reported captured by NetBase. Organizations obtaining

slider. The results were surprising this time, although of bias within the sample due to the counterintuitive

NetBase buzz counts above 3,000 included the

rankings vs. sample makeup. What emerged is that

American Marketing Association (AMA), the World

Advertising Research Center (WARC), the American Economic Association (AEA), the Life Insurance

Marketing and Research Association (LIMRA), the

American Statistical Association (ASA), ESOMAR, and the Advertising Research Foundation (ARF).

To underscore this point, we asked each participant

to rate the level of influence each organization they

had listed in the previous two questions has on their

many of the most influential organizations are

neither trade associations nor social networks but

rather are media portals. This begs the question of whether the extensive fragmentation of various

trade organizations and industry associations within

the market research space is decreasing the impact of these groups and creating opportunities for smaller entities to assume thought leadership roles.

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GreenBook Research Industry Trends

Fall 2011

Influence vs. Reach Index High Influence / Low Reach

Low Influence / Low Reach

GreenBook IIR

Quirks

AMSRS PMRG AAPOR

NewMR Twitter

MRIA

ARF

MRGA

QRCA

MRS Facebook CASRO NGMR

ESOMAR

MRA AMA

High Influence / High Reach

LinkedIn

Low Influence / High Reach

This hypothesis is starkly revealed in a quadrant

(4%), “industry standing” (3%), “easy & free” (3%),

relationship between organizational reach and

(1%), “cutting edge (point of views)” (1%), and “good

analysis we conducted to graphically display the influence ranking.

Clearly industry bodies designed to lead and

influence are losing that mandate to other outlets.

Perhaps a movement to consolidate organizations or

“impartial/no influence/hidden agenda/marketing” training/workshop sessions” (1%). This certainly

seems to be a possible prescription to cure what is ailing many of the major trade organizations.

at least to coordinate efforts is in order to reverse this trend and unify the market research space during this transitional phase?

When asked directly (in our study) about the

factors that make any of these “stand out for

you as influential and authoritative”, the most

common responses were: “quality/expertise of

Although associations are being followed, new media outlets and groups are assuming a stronger role in influencing decision makers

people involved” (30%), “thought leadership” (23%), “quality/expertise of publications/reports” (13%), “networking/connections” (5%), “code of ethics” www.greenbook.org

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