The World's Leading Marketing Research Companies the World's Leading Marketing Research Companies
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THE WORLD’S LEADING MARKETING RESEARCH COMPANIES Marketing News / HONOMICHL GLOBAL TOP 25 Aug. 15, 2006 H3 Where the top 25 Japan Brazil 0.6% are based France 3.8% 6.0% Percentage Germany 9.1% United States 30% of the combined global research revenue Netherlands 24.5% United Kingdom 26% of the Top 25, by each firm’s country NO GREAT GROWTH Compared to prior years, revenue gains small By JACK HONOMICHL duce a pure reading on the industry’s growth rate. Inc. in Reston, Va., and Market Strategies Inc. in Livo- Just these Top 25 organizations account for about nia, Mich.—were added. They filled slots left by two he world’s 25 largest marketing/advertis- two-thirds of the world spend through commercial firms who lost line item identity due to acquisition— ing/public opinion research conglomerates firms for research services. namely NOP Group, No. 9 in 2004, which was had, in toto, revenue of $14.4 billion in The global inflation rate used was calculated by tak- acquired by GfK AG (No. 4); and MORI, No. 19 in T 2005, up 5.4% over 2004. After adjusting ing the known inflation rates in the United States, 2004, which was acquired by Ipsos Group SA (No. 6). for inflation, the real growth rate is estimated at 2.9%. Japan and Western Europe and then weighting them These were the largest and most conspicuous changes How does that compare with previous years? In to derive an average for those markets, which account in ownership last year, but still just part of the general 2004, growth was 2.5% after inflation; in 2003, it was for the lion’s share of worldwide expenditures. That urge to merge fever that has transformed the industry down 0.6%; in 2002, up 0.7%; in 2001, up 4.5%; in average for 2005 was 2.5%. in recent years. Synovate, the British con- 2000, up 6.3%; in 1999, up 5.8%; in 1998, up 6.9%; Revenue figures come from the organi- These Top 25 glomerate, made nine acquisitions during and in 1997, up 6.8%. Average those nine years and zations involved, and many are either pub- 2005. U.S.-based IMS Health made 11. Ger- organizations you get an annual organic, real growth rate of 3.9% lic companies or subsidiaries of public man-based GfK made four, and Taylor Nelson for the industry’s behemoths. In this contest, 2005 was companies. Input from privately held com- account for about Sofres and VNU (all Nielsen Marketing a downer. panies is subject to third-party verification. two-thirds of the Research), made three apiece. Details about All revenue shown here is in U.S. dollars based on In 2005, revenue from two firms—the world spend these acquisitions and those made by other an annual conversion rate between each firm’s home Kantar Group and J.D. Power and Associ- through Top 25 firms are to be found in the individual country currency and the U.S. dollar—but all growth ates—had to be estimated, since their par- commercial firms company profiles that follow. rates were calculated in each firm’s home country cur- ent companies do not release relevant for research So, the multinational sprawl of these inter- rency. As much as possible, revenue from nonresearch financial information. But these estimates, purposes. national conglomerates continued apace in activities at these firms has been screened out. Also, it is believed, are close to actual. 2005, and indeed they have made numerous growth rates have been adjusted to account for acqui- This background, I suggest, is worth review; if these other acquisitions during the first half of 2006. During sitions made during 2005. That is, either revenue from data are to be cited or used in planning, best the user 2005, this group, in toto, got two-thirds of their rev- acquisitions made during 2005 have been dropped out understand exactly how they were derived, and that is enue from operations outside their home country. when calculating growth rates or the revenue for a process unique to U.S. estimates of market size and Only three—Nikkei Research in Japan and Abt Associ- acquired firms have been included for both 2005 and growth. ates and Westat in the United States—confined their the base year of 2004. That was done to eliminate These, then are the major findings from this, my operations to their home country. “hype” from acquired growth so as not to put an artifi- 11th annual Global industry review prepared exclu- You’ll note that the home countries for this year’s cial glow on the industry’s fortunes. (Details of these sively for Marketing News. Top 25 include, in addition to the United States, the adjustments can be found in the individual company Netherlands, Germany, the United Kingdom, Japan, profiles that follow.) Changes in listings France and Brazil. This is truly a cosmopolitan group; In short, to the extent possible, the revenue and As usual, there were changes in the Top 25 lineup growth rates shown here have been scrubbed to pro- during 2005. Two new firms—comScore Networks See HONOMICHL / Page H54 H4 Aug. 15, 2006 Marketing News / HONOMICHL GLOBAL TOP 25 TOP 25 GLOBAL RESEARCH ORGANIZATIONS No. of Research- Global research Revenue from Percent of countries with only revenue3 Percent outside home global revenue Rank Parent subsidiaries/ full-time (U.S. $, change country (U.S. from outside 2005 2004 Organization Headquarters country Web site (www.) branch offices1 employees2 in millions) from 20044 $, in millions) home country 1 1 VNU NV Haarlem Netherlands vnu.com 81 37,884 $3,537.9 2.8% $3,502.5* 99.0%* 2 2 Taylor Nelson Sofres plc London U.K. tns-global.com 70 13,580 1,802.7 4.1 1,513.5 84.0 3 3 IMS Health Inc. Fairfield, Conn. U.S. imshealth.com 76 6,900 1,754.8 7.8 1,120.5 63.9 4 - GfK AG Nuremberg Germany gfk.com 60 7,515 1,311.3 5.2 955.9 72.9 5 GfK Group Nuremberg Germany gfk.com - - 917.3 6.5 - - 9 NOP World Nuremberg Germany gfk.com - - 394.0 2.3 - - 5 4 The Kantar Group Fairfield, Conn. U.K. kantargroup.com 61 6,600* 1,237.2* 1.6 * 798.0 * 64.5* 6 - Ipsos Group SA Paris France ipsos.com 44 6,100 964.6 8.6 836.2 86.7 6 Ipsos Paris France ipsos.com 44 5,640 871.7 8.2 - - 19 MORI London U.K. ipsos-mori.com 2 460 92.9 14.4 - - 7 7 Information Resources Inc. Chicago U.S. infores.com 8 3,604 624.0 8.9 409.0 34.5 8 8 Synovate London U.K. synovate.com 51 5,559 602.9 10.8 494.2 82.0 9 10 Westat Inc. Rockville, Md. U.S. westat.com 1 1,835 420.4 5.7 - - 10 11 Arbitron Inc. New York U.S. arbitron.com 2 1,057 310.0 3.9 12.4 4.0 11 12 INTAGE Inc.** Tokyo Japan intage.co.jp 2 1,500 261.4 8.1 1.9 0.7 12 13 Harris Interactive Inc. Rochester, N.Y. U.S. harrisinteractive.com 4 1,373 210.5 2.5 42.5 20.2 13 14 Maritz Research Fenton, Mo. U.S. maritzresearch.com 4 612 207.1 13.1 42.9 20.7 14 16 J.D. Power and Associates Westlake Village, Calif. U.S. jdpower.com 8 820 198.2* 18.3 * 46.0* 23.2* 15 15 Video Research Ltd.** Tokyo Japan videor.co.jp 3 391 183.0 5.1 0.2 0.1 16 18 The NPD Group Inc. Port Washington, N.Y. U.S. npd.com 13 875 161.1 14.3 32.6 20.2 17 17 Opinion Research Corp. Princeton, N.J. U.S. opinionresearch.com 5 707 150.6 2.1 56.4 37.5 18 22 IBOPE Group Sao Paulo Brazil ibope.com.br 15 1,483 82.1 5.9 18.3 22.3 19 20 Lieberman Research Worldwide Los Angeles U.S. lrwonline.com 2 309 75.7 -2.6 9.9 13.1 20 21 Dentsu Research Inc. Tokyo Japan dentsuresearch.co.jp 1 118 61.1 -9.8 0.2 0.3 21 23 Nikkei Research Inc. Tokyo Japan nikkeiresearch.com 5 170 53.1 1.9 - - 22 25 Abt Associates Inc. Cambridge, Mass. U.S. abtassociates.com 1 200 52.2 25.8 - - 23 - comScore Networks Inc. Reston, Va. U.S. comscore.com 3 345 50.5 29.0 5.6 11.1 24 - Market Strategies Inc. Livonia, Mich. U.S. marketstrategies.com 2 175 44.5 12.7 1.5 3.4 25 24 Burke Inc. Cincinnati U.S. burke.com 1 198 42.8 -1.4 5.7 13.3 Total 99,910 $14,399.7 5.4% $9,711.8 67.4% * Estimated by Top 25 ** For fiscal year ending March 2006 1 Includes countries that have subsidiaries with an equity interest or branch offices, or both 2 Includes some nonresearch employees 3 Total revenue that includes nonresearch activities for some companies are significantly higher. This information is given in the individual company profiles. 4 Rate of growth from year to year has been adjusted so as not to include revenue gains or losses from acquisitions or divestitures. See company profiles for expla- nation. Rate of growth is based on home-country currency and includes currency exchange effects Lieberman Research Worldwide is now LRW.