Continuous and syndicated research differs from ad hoc work in a
couple of important ways.
The first is self-evident. A client seeking ad hoc qual or quant studies
can go to almost any consultancy offering those services. It might be
told that there is a conflict of interest with other clients or that it
specialises in other industries. By and large, however, most
consultancies would be eager for the work, and it would be a question of
fee levels, and whether they had the skills and resources to match
client needs.
By definition, the continuous and syndicated sector works
differently.
The research companies have identified areas where they believe there is
a need for regular information. They collect the data, and companies can
subscribe to the service. If client companies need to know what is
happening in DIY stores, or who watches which TV programmes, they must
go to the consultancies which track that information. Sharing costs with
other clients, including direct competitors, may be the only
cost-effective way of getting the facts.
Size factors
The sector’s other distinguishing feature is that this is primarily an
area for big research companies with big resources. This is not
exclusively the case - creeping in at the bottom of the table is
Chart-Track, an independent company which specialises in continuous and
syndicated surveys in the software and music markets. Even so, there is
an explanation of how it comes to find itself among much bigger
competitors: it is a management buyout from Gallup.
Size is important because of the resources needed to set up and run a
big and regular monitoring programme. Although 45 of the companies
participating in this year’s league table - half the total - claim to
undertake some continuous and syndicated research, some is on a very
limited scale. And the figure of 45 compares with 79 out of 90 offering
qualitative work, and 76 undertaking quantitative.
Continuous and syndicated work claimed by participants amounted to
pounds 154.6m, or 26% of total turnover, a similar share to last year.
But the segment is dominated by a handful of big companies. The top six
account for 78% of the sector.
Marketers will be familiar with some of the continuous monitoring
programmes offered by the big suppliers. They include Superpanel and
TARIS (Television Audience Research and Information System) from Taylor
Nelson Sofres, advertising tracking from Millward Brown, TGI from BMRB,
retail audits from IRI Infoscan, various industry tracking studies from
NOP, and DIY and electrical goods tracking from GfK Marketing
Services.
Taylor Nelson has long had a strategy of building the continuous side of
its business. It believes that this type of research has a momentum of
its own. Assuming clients are happy with the service, it is easier to
sell subscription renewals, compared with chasing ad hoc research
contracts.
Tony Cowling, executive chairman, says the research industry’s European
trade association, ESOMAR, calculates the market is moving from ad hoc
to continuous research at a rate of 1% a year. ’It may not sound a lot,
but 1% a year over ten years in a global market can be a big number,’ he
says.
’One of the reasons for this trend is that clients want information
faster. In ad hoc, if a client has a question, he’ll bring it to us and
we’ll try to find the answer. In continuous research, if we’re good at
our job, we will have anticipated the question and the information will
already be in the database,’ adds Cowling.
The big players, Taylor Nelson, Millward Brown and BMRB, also find that
if they have successful, continuous services in the UK which are bought
here by international clients, it is easier to sell similar services
abroad.
BMRB chairman John O’Brien points out that its TGI range of products,
which used to be available only in the UK, has extended to 15 other
countries with the assistance of overseas partners.
Interesting developments
GfK Marketing Services has set up a joint venture with IT research
specialist Romtec, to track sales of IT products in Europe.
Strategic Research has launched a customer-tracking service called
STARS.
The industry’s code of practice insists that the identity of
interviewees should not be revealed. Under STARS, Strategic Research
holds a duplicate copy of the client’s customer database. It can then
match individual customer behaviour against what is actually said about
the company. Reports are presented in market segment form to the
client.
David Penn, managing director of Conquest Research, accuses competitors
in the brand and advertising tracking sector of being inflexible and
obsessed with technique. Standard packages available on a
take-it-or-leave-it basis are often not ideal for clients, he
claims.
Top 25 continuous and syndicated research
Rk Consultancy Consumer Business-to- Total
(pounds) business continuous
(pounds) and
syndicated
research
(pounds)
1 Taylor Nelson Sofres* 29,687,000 1,746,000 41,912,000
2 Millward Brown N/a N/a 27,788,000
3 BMRB International 13,964,000 - 13,964,000
4 IRI Infoscan 13,087,000 689,000 13,776,000
5 NOP Research Group 9,440,000 4,046,000 13,485,000
6 GfK Marketing Services 9,361,000 - 9,361,000
7 IPSOS RSL N/a N/a 3,836,000
8 MBL Group 3,756,000 - 3,756,000
9 Isis Research 2,588,000 - 2,588,000
11 Audits & Surveys Europe 1,730,000 665,000 2,395,000
12 Sample Surveys 2,299,000 - 2,299,000
13 Hall & Partners 2,220,000 - 2,220,000
14 MORI N/a N/a 2,183,000
15 Romtec - 1,898,000 1,898,000
16 City Research Group 209,000 1,047,000 1,257,000
17 Infratest Burke Group 1,121,000 - 1,121,000
18 GfK Great Britain 879,000 176,000 1,055,000
19 Conquest Research 851,000 122,000 973,000
20 Business Research Group - 951,000 951,000
21 Total Research 325,000 325,000 651,000
22 Surveyplan (Market Research) 607,000 - 607,000
23 INRA UK (previously RAS) 577,000 - 577,000
24 MVA 510,000 - 510,000
25 Chart-Track - 468,000 468,000
*In addition to continuous/syndicated research clearly identifiable as
consumer or business-to-business, Taylor Nelson Sofres claims pounds
10.5m from the healthcare and media sectors.
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