Professional Documents
Culture Documents
No 62 | February 2017
Continuing project
ESOMAR Growth 2020
How tech is transforming
market research
Preventing sex trafficking in India
Learning from storytelling
PROPELLING
RESEARCH
INTO THE
NEXT ERA
Industry leaders on new
partners, new competition
Five strategies for survival,
growth and profitability
ENCOURAGING, ADVANCING AND ELEVATING MARKET RESEARCH, WORLDWIDE.
16
ProPelling research
into the next era
Capital investment in market research and analytics is shrinking overall
but two areas will push growth.
25 37 46 52
New technology, Five strategies for Learning from Preventing sex
new partners, new survival, growth and storytelling trafficking in India
competition profitability What can film and theatre How research helped Red
We talk to four influential Confronting the crisis of teach us about insight? Alert to communicate with
industry leaders about the middle-sized market the key stakeholders
how the world of insights research firms
is adapting.
editorial
Simon Chadwick
F
ifteen or so years ago, Randy Emond was head
13 Continuing Project ESOMAR Growth – 2020
We talk to ESOMAR’s new Council of market research at Philips Consumer
Electronics. Uniquely among his peers in the
22 Can big data predict tomorrow’s tastes today? industry, he loved to blow things up – research
How to marry molecular and data science with methodologies, received wisdom and the way in
brand identity which research worked. He probably still does, though
these days he is a consultant and not a client.
29 The Insight Show Nonetheless, he made a suggestion at an ESOMAR
Advertorial conference that enraged research suppliers the world
over: he (strongly) suggested that he, as a client,
30 How tech is transforming marketing research
should have the right to take the expertise of Supplier
And the risks and rewards when choosing
A, match it with the methodology of Supplier B and
a particular solution
hire a consultant from Supplier C to pull it all together.
34 Learning from Maleficent From the reaction of the assembled community, you
Communicating changes in the insights we seek would have thought that he had just asserted the
right to sell all our daughters into slavery.
42 Success stories from medium-size companies Fast forward to 2017 and I suspect that Randy is
Flexible, specialist and innovative players can laughing all the way to the “I told you so” bank.
win the game Partnering is now not only an accepted part of the
research process but it is a de rigueur strategy for
survival and growth. Evidence of the power of
partnering is now all around us – you just have to look
at the winners of Ogilvy Awards or indeed of
ESOMAR Congress Best Papers to see multiple
regulars insights providers working together to bring impact
to their clients’ businesses.
10 Up and counting 45 Dr. Pete The difference between then and now lies in the
What will clients be The walk-in clinic for diversity of techniques, methodologies and specialties
doing more or less of research ailments that can and need to be deployed in the pursuit of
in the next five years insight-driven impact. Back in Randy’s day, the
50 RW Connect suppliers he was talking about were primarily full
33 Reflect. service market research suppliers. Today, there are so
Necessity is the 51 ESOMAR Lounge
many different specialties – social media monitoring,
mother of invention
big data analytics, MROCs (you name it) – that no one
57 Marketing case
company can offer it all (unless your name is Kantar).
40 The next wave history
How to learn to stop How consumers It is therefore incumbent on research companies to
worrying and love search online – and make alliances, seek partners and co-create
our industry on the go approaches with companies that can also be their
competitors. This is the new entry level business
58 Calendar 2017 model to which we all now must subscribe.
We are all the richer for it.
Understanding woman
in the Middle East
Women are spending more time with their smartphones and on penetration. “This has made it
possible to reduce the need for
social media and women in the Middle East are no exception. Has human interaction and intrusion of
private space. Other technologies are
the advent of technology made it easier for brands and researchers also helping collect insights without
the need to ask questions, like eye-
to understand this traditionally difficult to reach demographic? tracking and neuroscience
applications.”
Rafik el Noumeir, senior insights-
T
he internet and social media their lives. One of the key findings is strategy and marketing professional
are increasingly important for that women in the Middle East have MENA at Pepsico, UAE confirms this
brands and retailers in the broad access to the internet: seven in progress. “While we have been
Middle East, but also for ten have access to the web, ranging understanding women as shoppers
researchers. Young people in the from 99% in Kuwait to 54% in and consumers for a long time,
region spend an average of 15 hours Morocco. Across the region, 86% of advances in technology in the insights
a week on social media, according to women with internet access use social field now allow the interaction to
a report by North Western University media. YouTube is the top social become deeper and more meaningful
in Qatar. And last November Ipsos media platform, used by three- and, more importantly, on-going. The
launched “She speaks”, a quarters (75%), but all the key social use of apps or online forums or even
comprehensive syndicated research media platforms: Facebook (71%), the mining of social media, now gives
effort on female consumers in the Instagram (64%) and Snapchat (59%), brands the capability to interact with
Middle East and North Africa (see are used by a majority of women. women in the region that wasn’t
box). The title is significant, as the available a few years ago.”
study sheds light on a traditionally Private sPace Mohammed Minawi, regional senior
hard-to-reach segment offering a It is this widespread adoption of all director at Ipsos MENA, describes
better insight into women’s attitudes, things tech and online that is now another area where technology is
aspirations, lifestyles and behaviours, helping to provide a better improving the understanding of
and a more holistic understanding of understanding of women across the women: “Mobile ethnography has
this segment across various aspects of region; something that has in the past given us an ability to truly immerse
been quite difficult due to the diverse ourselves in the day-to-day lives of
range of customs. “The MENA women in the region on their own
remains one of the most complex terms and in real time. We can now
regions when it comes to conducting reach some areas of their lives that
market research”, confirms Ziad Skaff, might not have been possible using
managing director MENA, Hall & more traditional methods, thus giving
Partners Dubai, United Arab Emirates. us a deeper understanding about their
“This is due to the usual reasons attitudes, behaviours, and lifestyles.”
ranging from social to national
security. The advent of technology FeMale gaMers
has helped overcome some of those These research breakthroughs are
Ziad skaff is managing director at Hall & Partners, rafik el noumier boundaries.” He explains how vitally important because the role of
is senior insights-strategy and marketing professional MENA at
collecting information today is more women in the region is certainly
Pepsico and Mohammed Minawi is regional senior director at
within reach thanks to high social changing, as shown by a study by
Ipsos MENA.
media consumption and mobile J. Walter Thompson’s Innovation
continuing Project
esoMar growth – 2020
As the author Khalil Gibran wrote: companies of the past 20 years – InSites Consulting – but
he has also been an active member of Council for the
“Yesterday is today’s memory; past three terms and is intensely involved with the
development and growth plan for ESOMAR.
tomorrow is today’s dream.” A passion for innovation and discovery lies at the
heart of InSites Consulting’s success, and this same
desire now underpins Niels’ wish to see ESOMAR build
further on the investment and growth plan initiated four
J
anuary 1, 2017 heralded the start of the new years ago.
Council’s term in office, as well as our 70th With an updated, fit-for-purpose Code, a stronger
anniversary! and empowered team of national Representatives and
This Council – elected by YOU, our an improved communications platform, Niels believes
members – retains a number of key members from the that ESOMAR is now uniquely placed to offer greater
previous Council, and is further enhanced by the addition support to the client-side and to further augment the
of representatives from Southern Europe (Italy), latin presence and role of the youth as an intrinsic part of the
America (Venezuela) and India. It is important to stress ESOMAR community.
that once again, the entire Council is made up of The previous Council set up an initiative with the
practicing researchers, involved on a daily basis with the working title “Project ESOMAR Growth 2017”. The first
needs of, and demands on, our profession. This will phase of that development plan was to ensure that the
ensure that as we mark 70 years of being the global voice Code – which lies at the heart of our membership – was fit-
for the research and data analytics sector, and actively for-purpose in our ever evolving profession. We were
encouraging, advancing and elevating the cause of delighted that with the support of our joint
evidence-based decision making with clients, legislators stakeholder – the ICC (International Chamber of
and the public, that we have a wonderful team to not Commerce) – the updated Code was overwhelmingly
only celebrate our achievements, but also to keep approved, and allowed us to reframe the relevance of
building on the many great things we do! the Code for new entrants into the insights sector, young
Niels Schillewaert, our President, brings a very special professionals and of course clients. In parallel, initiatives
perspective to the role; not only is he a founding partner centering on artificial intelligence, ESOMAR television
of one of the most successful research and advisory and the start-up communities helped to further spread
by innovative technology; today, as the research We know that change is a “many-splendored thing,”
industry creates synergies with the technology industry, and that the pace (and indeed relevance) of
the research profession is becoming as exciting as any transformation varies considerably, depending on
other and my focus will be to raise awareness of this whether you are on the client or the supplier side – not
opportunity among young people.” to mention the additional variable of local market
Umesh Kumar (India) echoing Anne-Sophie, believes infrastructure. In this regard, we are also fortunate to
one of ESOMAR’s key strengths is its ability to: “in have Kristin luck on Council for a second term, who,
partnership with local associations, create awareness of, as a growth strategist, can play an important role in
and raise the profile of research at a local as well as ensuring that ESOMAR achieves against its objectives
regional level; creating a networking platform for both for the coming two years, to continue “ensuring that
buyers and suppliers to learn and benefit from new ESOMAR is uniquely positioned as THE global
methods and technologies.” association that promotes the value of market, social,
This sentiment is also very close to the heart of and opinion research and data analytics in illuminating
Marcello Sasso (Italy), for whom increased networking real issues and supporting effective decision-making, in
activities, and the ability of members to interact with a fast-evolving industry”.
both the local representatives and ESOMAR, is key to And so, we return to a mantra that Niels Schillewaert
the success of the organisation: “This will lead to better has supported for many years: namely that the research
collaboration, higher participation and engagement world comprises suppliers AND buyers. All too often
(value), and the elevation of both the association and the client side’s views are not incorporated into topical
the industry.” debates, and yet at ESOMAR, we actively encourage
client side representatives to join in our efforts to
“toMorrow is oFten the busiest day oF continually raise the profile, role and perceived benefits
the weeK” – sPanish Proverb of evidence-based decision making; in partnership with
While lots of opportunities now present themselves, we Niels, Pradeep and the entire ESOMAR team, this
must equally ensure we do not lose sight of our current Council will ensure that “we continue to create leverage
responsibilities, while looking to the future. with research at the client side so that research is better
Pieter Paul Verheggen (The Netherlands) is very clear used and understood right up to the boardroom.”
on this: “With so many new developments, the While we – as Council – have committed ourselves fully
ESOMAR organisation is not only the best facilitator for to facilitating and accelerating this growth plan, we
sharing knowledge and best practices, but it is also the cannot do it without you. ESOMAR is an organisation
premium gatekeeper on quality and ethics”; not just to support the industry and its members like yourselves.
how they might apply in the future, but also how they Without your support, your input and feedback, these
apply today. initiatives will not achieve what we wish them to. So,
luisa Mercedes Ravelo (Venezuela) is of the same during the course of our coming Council term, please
opinion: “my aim is to contribute to the continued do not hesitate to contact any one of us with your
diffusion of best practices and quality standards within thoughts or ideas, and let us ensure that we continue to
the industry; with the support of ESOMAR we have build upon – and extend – all of ESOMAR’s great
better professionals, provide better insights and ensure achievements to-date.
our profession grows at the same pace as the
information highway!”
And Umesh (India) is also strong on this aspect:
“ESOMAR does, and must continue to, play a vital role
in guiding the global research industry to adopt
international standards of research practice”.
I
n total, the Index counted 106 opposed to US$ 22.3 million last year
transactions last year (down from and US$ 35 million in 2014.
120 the year before and 152 in
2014) amounting to US$ 1.67 investMent in MarKet
billion – a 35% decrease year on year. research
Since CCFI probably only captures When CCFI first appeared in 2011,
around 80% of total transactions investment in market research firms
(many are not announced publicly), slightly outstripped that in analytics.
this would equate to just under US$ Even though this was strongly
simon chadwick is 2.1 billion in aggregate, a far cry reversed in the following years, there
managing partner of from the heady days of 2014 when remained strong interest in the
Cambiar and editor-
nearly US$ 5.8 billion found its way market research side of the equation
in-chief of Research
into the coffers of new entrants into all the way through to 2014. last
World.
the sector (graph 1). year, interest in market research
Ultimately, what this represents is declined markedly and this year it
the beginning of an end to the has disappeared almost entirely
Funding definitions: infatuation with big data analytics as (graph 2).
well as a period of maturation for This is not to say that investors
Seed: very early stage funding, usually at the beginning of many of the investments made over have no interest in market research
a company’s life
the past three years. While there are as a sector. On the contrary, there is
Series A through E: sequential rounds of equity funding as
the company grows, with “A” being the first in the series; sectors that remain vibrant (mobile vibrant involvement in this side of the
usually these rounds are funded by venture capital or private and predictive analytics in particular), insights industry but it rests
equity funds which then become shareholders of the there is evidence that appetites are elsewhere than venture capital. As
company waning for investing large amounts in the more established partner in the
Debt: funding, often carried out by banks, that injects capital the industry as a whole. Not only was provision of marketing insights to the
into a company; that capital then becomes a debt obligation the total invested down but so too corporate world, market research is
for the firm – funders become creditors rather than
was the average amount invested today more aligned with the interests
shareholders
IPO/Stock Issuance: a public stock offering to raise capital
per transaction – US$ 16.3 million as of Private Equity, particularly at the
larger end of the industry. Nielsen
graph 1. total investment (us$ billions) graph 2. investment by business category (us$ billions)
4 4
3 3
2 2
1 1
0 0
2012 2013 2011 2014 2015 2016 2011 2012 2013 2014 2015 2016
Source: Cambiar Capital Funding Index 2016 Source: Cambiar Capital Funding Index 2016
graph 3. investment by stage (us$ billions) graph 4. analytics investment by subcategory (us$ billions)
3 0.8
0.6
2
0.4
1
0.2
0 0
2012 2013 2014 2015 2016 Big data Social media Web Mobile analytics Predictive
Source: Cambiar Capital Funding Index 2016 Source: Cambiar Capital Funding Index 2016
W
hen companies tackle this coming up with new Our food scientists
question, they frequently flavour lines. begin by analysing
spend too much time in 1. Consumers are no food ingredients at a
the fuzzy front end. At this stage in longer exclusively loyal molecular level. Here,
flavour line development, they often to brands – the millennial we identify the aroma of
rely on intuition, which can prove flavour palate is evolving at the food ingredient and can
risky and costly, or on generalised a rapid pace and new products say which ingredients would go well
trend reports and expensive surveys. are constantly hitting the shelves together based on this molecular
At Foodpairing, we acknowledge in order to keep up. analysis. Next, we analyse public
that the fuzzy front end can never Johan Langenbick 2. 76% of new product line consumer data from search engines
be eliminated, but we’ve developed is co-founder of extensions fail within a year. and social media, trends detected
a different approach to market Foodpairing. 3. A new generation of agile via blogs, menu and recipe sites and
research that shortens that process companies has entered the scene. chef data from our own website
for brands. We call this hybrid Local craft producers, for Foodpairing.com. These
approach Consumer Flavor example, create strong brands sources give us an
Intelligence (CFI). with high quality, on-trend
NEW
technology
NEW
partners
NEW
competition
business questions can also be answered with passive data “Results will be more
or data already held by market researchers or clients. And
there are approaches that combine measurements from relevant if you measure
different angles, like our Crossmedia Link Panel. I believe a
smart combination of surveys, panel data and passive behaviour, rather than
measurement offers huge potential for our industry.
Passive measurement and analyses of secondary data are just ask about it.”
two of the biggest changes in our industry. Also, anything
that makes subconscious or spontaneous decisions and
behaviours “measurable”. Take shopper behaviour in a
store: results will be more relevant if you measure
behaviour, rather than just ask about it – and do so in a real
or close-to-real environment. Combining such findings
with additional data lets us really understand (digital) We can evaluate publicly available
shoppers. So, these new technologies are making research data like social media or weather data,
gerhard hausruckinger, speaker for the more relevant while offering higher speed and global use. as well as data provided by panelists,
Management Board and Chief Commercial Researchers are increasingly incorporating data streams such as smartphone GPS or sensor
Officer at GfK from other sources, too. data, their IT behaviour or purchase
data. I would say: if there’s data, we can most likely make Gerhard Hausruckinger have more data sources at hand than
good use of it. The key to success is not so much the data, ever before, and we can combine new
but combining it accurately and smartly, and making data sources with our market insights
relevant conclusions focused on the business challenges of “We need teams with and research science to create value
clients. for our clients. And as markets change
As the marketing intelligence sector expands, some deep market knowledge, with ever-faster speed and agility, we
companies are both competitors and partners. For also have to redesign our basic
example, we co-operate with Google in fields like cross- sound market research processes accordingly. For that, we
media panels, while, in the field of self-service surveys, we need teams with deep market
compete. Despite the growth of new players, I see the capabilities, and data knowledge, sound market research
market research industry standing strong in certain capabilities, as well as statistics and
areas – like our ability to analyse huge amounts of data, or analytics skills.” data analytics skills. We continue to
the trust consumers and clients place in our high standards focus on helping our clients
around aggregation and anonymity. I also see great understand their customers better,
partnership potential in technologies that market research and creating relevant insights for
can leverage. Take voice analytics, for example. We do not critical business decisions and
need to invent it, but we build on developments in this provide orientation in our hyper-
field and create relevant applications from a market connected world. And we work hard
research perspective. to present these insights to clients in
The future of market research is exciting – not despite, an easy-to-digest way so they can act
but because of, the change that influences our industry. We on them fast.
T
he market research industry marketers need to take both into available at a click (although the
is creating a new wave of consideration when choosing and quantity may be overwhelming and
opportunity for marketers by deploying a particular solution. the quality doubtful). luckily the
leveraging technology to Mechanisation brought with it the analytic tools available to us have
develop innovative research tools to ability to automate physical tasks. evolved to match the task, allowing
gain insight into consumer behavior Digitisation accelerated the us to clean, parse and interrogate
and attitudes. For someone like me opportunity for automation by making huge data sets, much of it without
who has been involved in the the physical intangible and replicable. human intervention. When a project
research business for many years it’s In the space of 30 years automation does demand new data be created,
heartening to see a long-held has transformed the research industry. projects that once took weeks can
objective come to fruition. As always, And the last five have seen an nigel hollis is chief now be completed in a few hours.
global analyst at
however, there are both risks and acceleration of this transformation. The industry moved quickly from
Kantar Millward
rewards to the democratisation of Data is no longer rare and printing questionnaires to creating
Brown.
research, and researchers and expensive. It’s everywhere and digital forms, from punch cards to the
custoMisation
The early days of research
automation focused on process:
questionnaire creation, deployment
and data analysis. Flexibility was the
key to success, making it easy to Right now anyone can create a bad
create custom surveys of all sorts.
Today Capterra lists over 200 survey survey simply because they do not know
software products focused on the
automation of the survey process the basics of good survey design.
from installed to web-based. Perhaps
the most widely used self-serve
solution is SurveyMonkey. As it says
on the company’s web site “There are
lots of ways SurveyMonkey can help.”
And therein lies the fundamental
problem of many automated survey
tools, you can do pretty much
anything with a truly flexible survey
tool and not everything is going to
make sense. Some design pitfalls can be research and behavioral validation
For custom surveys I would argue addressed by expert-certified baked into the survey instrument.
that survey design is still an area ripe templates, which bring with them the For example, ZappiStore partners
for automation, because right now advantages of benchmarking, without with a number of research companies
anyone can create a bad survey which it is difficult to judge whether to provide automated testing of
simply because they do not know the any rating is good, bad or indifferent, brand strategy, advertising creative,
basics of good survey design. lack of but bias and lack of knowledge digital executions and more. These
research expertise is not the only remain significant issues with self- self-serve solutions allow marketers to
potential flaw. Custom surveys can serve custom research. choose a solution to meet their
deliver misleading data simply specific business needs, configure
because the creator is unaware of sPecialisation that solution to their needs, and get
their own biases or lacks knowledge Today a new breed of automated data in as little as a few hours. Online
of the topic they are researching. For research solution is evolving from the reporting lets the user explore, export
example, I once designed a survey to “do-it-all,” Swiss Army Knife-type and share data as well as compare
be fielded in Mexico that was rescued model to deliver specific survey tools results against industry norms.
from irrelevance when a colleague designed from the start to address Solutions like these minimise the
pointed out that in many Mexican specific information needs. A growing time taken to conduct the research
households the mother would visit number of online research providers and maximise the usability of the data
the local store just before the family such as ZappiStore, GutCheck and collected. lauryl Schraedly, Marketing
meal was served to buy whatever six Qualtrics are partnering with research Director, Consumer Insights and
pack of soda was in the fridge and firms like Kantar Millward Brown, to Strategy at PepsiCo – Gatorade,
cold. living in the US where almost all provide a new generation of solutions outlined the benefits of the
households have a large refrigerator to marketers who need to develop, automated solutions approach in a
stocked on a weekly basis I simply track and understand the recent webinar as follows,
had not questioned whether effectiveness of marketing at speed. “A couple of years ago, any digital
behaviour in Mexico might be This has created research tools that testing was based on clicks,
different. are not just faster and less expensive engagement and digital testing was
Crafting an effective custom survey but which incorporate decades of more of a summary of how it
takes expertise, knowledge and time. survey design expertise, research on performed. Now, having a tool to pre-
test at a speed of hours, combining in- around the world, something that and much better actionability for the
context behavioural metrics with would have been impossible based end user.
validated survey responses, has not on previous manual coding
only given us an effective way to techniques. Another company, data exPloration
pre-test digital content, it has brought Remesh, is in the business of One of the advantages of the new
together our teams spanning digital, applying artificial intelligence to scale breed of automated research
communications, insights and qualitative research to the point solutions is the confidence that the
agencies to understand the challenges where it is indistinguishable from questions, and the metrics modeled
faced from a shared point of view.” quantitative. or derived from them, relate to real
Driving out time spent on process In addition, partnership is another world outcomes. But it still helps to
allows both marketer and research factor that separates solutions like have some idea of how high is up. Is
agency more time to focus on what these from the traditional research a customer satisfaction mean score of
the results mean, what can be done model. Innovation requires not just 4.3 on a five point scale good or
today and what can be learned for the idea but the expertise and the bad? It’s tough to tell without
tomorrow. resources to make it happen. My own normative data. Interactive reporting
Of course, specialisation extends experience of developing an tools that allow end users to not only
far beyond the domain of surveys. automated research solution for slice and dice their own survey results
Companies like Affectiva, Remesh Millward Brown to test online but also compare it to industry
and Voxpopme are also seeking to advertising in the late 90s confirms benchmarks configured to their
automate other aspects of the that sometimes technology needs are a real step forward.
research domain. Affectiva is notable development is best left to Of course, benchmarking is one of
in that the automation is applied to companies that specialise in that the simplest forms of analysis, and
facial coding, capturing second-by- domain. Equally, technology technology when applied to analytics
second facial expressions and companies tend to lack the domain has had one of the biggest influences
automatically identifying the expertise to research brands, media on the research industry. I will call out
associated emotions. To date Kantar and communications. The just a couple of applications here.
Millward Brown has used this combination of the two allows each Cloud-based analytics now allow
approach to test the emotional company to play to its strengths and researchers and marketers to analyse
response to over 20,000 video ads results in a far better user experience huge amounts of data quickly and
revolution
of invention
Writing this article has forced me to
realise just how much the industry has
changed over the years. But I also
recognise that its evolution is far from
sort. If the research industry is not
careful, just as the ad industry faces
a rapid increase in ad blocking,
T here is no doubt that technology has played, and
continues to play, a major role in the
transformation of the research industry. I would
complete. It also gives me pause to researchers might face a consumer submit, however, that technology has not itself been
reflect that the continued application backlash against surveys. The the actual driver of change but rather has been a
of technology will bring industry-wide obvious solution is to glean as much primary enabler in a dynamic of change that has its
rewards but also risks. insight from passive behavioral data origins in client needs.
For years researchers have like search and social before As Nigel Hollis correctly points out, the initial role
struggled to gather both behavioral resorting to direct questioning to fill of technology was to automate processes in the
and attitudinal data from the same in the blanks. Device-agnostic, mini conduct of market research. Much of this was due to
person to try to understand why they and micro surveys that only ask severe price compression as corporate research
behave the way they do. what needs to be known must departments responded to the need to do more with
Programmatic, combined with become the norm. less. He is also absolutely correct that this not only
artificial intelligence, offers the continues today but is accelerating with the advent of
opportunity to combine behavior and conclusion services such as Zappistore and Qualtrics.
attitudes in real-time by fusing like many industries the application Technology is also enriching us enormously by
behavioral analysis with of digital technology has helped enabling us to measure and integrate data from a
programmatic micro surveys. By democratise the benefits of market myriad of different sources, many of them passive and
combining data on the context and research. Thanks to technology, behavioral. And, certainly, the industry’s talking heads
behavior simple one question surveys marketers of all shapes and sizes write and speak of little else. But a deeper dive into
could be deployed, making the can improve their creative client behavior reveals a slightly less breathless story.
interaction far more relevant and development, advertising
The recent BCG/Cambiar/Yale study of insights
conversational. However, we need effectiveness, media spend and ROI.
management in large corporations revealed that, in
only look at the state of online Rather than simply automating the
many of the largest clients, there is precious little
display advertising today to process of research the new
budget for innovation in research itself. Rather, the
recognise that programmatic generation of automation builds
relentless push is for greater impact with less budget
targeting is still in its infancy. Done intellectual property and expertise
well programmatic advertising into the system. For potential users
and fewer resources. It should not really surprise us,
enables advertisers to combine I believe that technology can deliver
therefore, that actual client expenditure is going more
audience data with ad inventory and access to faster, cheaper and better
and more into innovations that supply research faster
deliver content to those most likely to research. It is time for all of us to and cheaper – not those that have the potential to
buy, done badly it fails to move the step outside our comfort zone and reveal deeper insights. For example, despite
needle on any key metric. Technology seek to identify how technology can predictions of huge success for neuroscience in the
on its own is no substitute for bring not just efficiencies to current industry, there has been only experimental uptake that
effective application. methodologies but open up new has barely scratched the surface and precious little
Just as the amount of digital opportunities. And I would argue investment.
display advertising has doubled in that automation is just beginning to Why is this? Because these more stretch
the last few years we might also reveal its true benefits. The best innovations are not yet scratching itches that have yet
expect technology to boost the may yet be to come, provided we to become imperatives. This is not to say that it won’t
number of surveys people encounter. focus on asking less not more and happen – it will as the avalanche of the “what?”
It is fast becoming a standard that do not overload a precious resource, provided by data analytics stimulates the need to find
any interaction with a company the people we whose behaviour out the “why?” that many of these technologies will
prompts the delivery of a customer and attitudes we seek to provide. It’s just going a little slower than many would
satisfaction questionnaire of some understand. have you believe.
Learning
from
Maleficent
Communicating changes Even though basic common- 1. Use your calendar to trigger
sense dictates that after such time, regular check-points:
in the insights we seek the baby would grow to become a You’re likely juggling a plethora of
teenage girl, this story is a lesson projects, so let your calendar
and teaches us… notifications do the work for you. Set
I
n Sleeping Beauty, the evil queen 1. that Maleficent shouldn’t have reoccurring reminders to check-in on
Maleficent has sent forth her assumed everyone else clients and ask if anything needs to
minions to look for baby Aurora, understood that be changed/updated regarding your
seeking vengeance after being 2. to reconvene with teams study. Set these reminders to
snubbed out of a party invite. 16 regularly for progress updates whatever frequency is optimum. Not
years later, Maleficent goes berserk when working on a common goal only does this proactively anticipate
when it becomes clear that her 3. to improve the way we changes, but also let’s your clients
minions didn’t comprehend the shift communicate changes regarding see your conscientiousness
in what they were looking for over a common goal concerning shifts in their business
time. 4. that Maleficent should hire a and needs. In my experience, a
“16 years and not a trace of her! better HR recruiter simple “We’re just checking in that
Are you sure you searched every- 5. And that as researchers, we must these are still the target
where?!” she shouts to the terrified proactively check on changing completes/objectives/ways in which
minions. They conclude that yes, they client needs and goals. you would like the data presented to
have; every mountain, every forest, you” does the trick. About 40% of
and…every cradle. They were looking so here are 5 things the time, clients say ‘Yes! Actually,
for a baby for 16 years. Ouch. you can do to avoid could we just update x and y?”.
But upon reflection, does it not MaleFicent’s Faux Pas Having these check-ins means you
seem a little unfair that the minions These tips will help suppliers help your client achieve their goals,
were berated when a) Maleficent betty adamou, manage change by proactively and time is saved in the long run.
decides to call a progress meeting Founder & Chief staying abreast of evolving client
over a decade later and b) she ResearchGame™ expectations and/or insights sought 2. Be mindful of what your
Designer, Research
assumed they all knew the search when working on longer-term client’s business is doing:
Through Gaming
goal was evolving? studies. Is anything happening with your
B
etween 2005 and 2015, the traditional market now – that growth and profitability come from focus,
research industry posted a Cumulative Average specialisation and differentiation.
Growth Rate of (CAGR) of 3.82%. Organically, the But what of the those “traditional” middle market
larger companies kept pace with a CAGR of 3.6%, research firms that fared so poorly from 2005 to 2015?
feeding their actual (i.e. organic and non-organic) growth Were they undone by their lack of specialism and focus
with a spate of acquisitions from the middle and smaller or was something else at play? In part, the answer is
ranks of their competitors. Smaller firms (US$ 10 “yes”, lack of focus had something to do with it. But
million – US$ 30 million annual revenues) saw an attrition further investigation reveals a much more forceful trend
rate in their ranks of one third over the decade, some at work – lack of access to capital in a fast-changing world.
being acquired but many selling off their assets in fire simon chadwick is
sales or purely closing down. Those left standing, managing partner of the Forces at Play
however, did well, posting a CAGR of 4.33%.1 Cambiar and editor- let’s briefly review the forces lining up against not only
But what of the middle rankers – those with revenues in-chief of Research the middle rankers but all market research companies
between US$ 30 million and US$ 100 million? How did World. today:
they fare? Again, about a third disappeared into the 1. The Great Recession drove clients to deliver more
bowels of larger competitors, but those remaining did with less budget and less resource. That led to
much worse than the market average – a CAGR of just significant re-evaluation of what adds value and what
1.66%. does not.
At the same time, it has to be said that seven new 2. To meet this need, they started to turn to new tools,
entrants emerged in the “middle sector” over the notes new business models and new data sources, all driven
1. These data are
decade (as measured by the Honomichl and ESOMAR by new technology. This opened the door to a
taken from
Global 25 indices) and that these were vibrant, fast- tsunami of new investment into the insights and
ESOMAR and from
growth firms that, for the most part, brought something analytics (mainly analytics) industry in the form of over
countries that
new to the industry. Prime examples would include publish ranking
US$ 13 billion in venture capital in the last five years
dunnhumby (retail analytics), comScore (cross-media tables each year. alone. Out of this torrent of investment, we can expect
analytics) and Wood MacKenzie (secondary research in As such they to see between 60 to 80 viable new competitors
energy, metals and mining). The success of these represent the USA emerge.
companies just goes to re-emphasise what has been and the larger 3. The traditional (and always flawed) business model
common knowledge in the industry for some time European markets. whereby the collection of data was the driving force
All of this implies access to capital. that meet your needs – these could be in social media
My new competitors have it – they are drowning in monitoring, big data analytics or even advanced
venture capital. My global competitors have it – they can mobile solutions.
draw upon large corporate investment pools and the 4. Similarly, take a good look at your vertically-integrated
banks. Even my larger middle market competitors have business model. Too many research companies have
it – they are now Private Equity owned. Just look at gone down because they insist on doing everything in-
lieberman Research Worldwide, Research Now, SSI and house. In a fast-changing technological world, this is
FocusVision – they are all funded by deep-pocketed just not feasible anymore. Find strategic outsource
Private Equity. What is a “smaller middle” traditional partners for things you do not absolutely have to do
research company to do? internally – and that which you do, automate!
From our own experience of success at this level, there 5. Move as far and as fast as you can to an independent
are five strategies that, in various combinations, can lead contractor model. Not everybody on your team has to
not only to survival but to growth and profitability: be an employee. Many of the talents you need are
1. Seek to gain in size, resource, capital and required on demand, not as permanent functions.
differentiation through like-to-like mergers and look to some of the more successful of these models
acquisitions. Whereas in the past most M&A involved to work out how you can do it too – Mizzouri, for
the very large acquiring the smaller, now most activity example.
in this area involves mid-sized firms acquiring other
mid-sized firms. One potential outcome of such activity And, whatever your strategy, excel at what you do! Being
is that you become more attractive to Private Equity. in the middle is not an automatic death sentence. You
2. Whatever strategy you choose, ensure that you double can access capital both internally and externally and you
down on your specialties and what differentiates you. can compete – all it takes is imagination and intestinal
Whether it be your dominance in a particular vertical, fortitude!
expertise in a special slice of your clients’ business or
your track record of innovation, make this your defining
feature. Even today, that can lead to a strategic sale or,
again, interest from the PE community.
3. You can’t do it all on your own. Seek out strategic
partnerships to bring to market products and services
How to learn L
1.
et’s play a guessing game. Which of these exist
today? Machines that…
can react to queries in depth and without the
to stop worrying
need for lengthy contextual explanations
2. beat champions in the world’s most complex
board game
3. simulate human intuition, or recognise cats
and love
4. accelerate how we identify, read, summarise
and visualise huge amounts of text (read:
machines that could technically build research
reports)
our industry Hint: they all exist. They are the Google Homes,
AlphaGos, deep-learning systems (and that includes
cat-recognising ones) and Ellipses of this world,
and they are a few of the reasons why the research
community is abuzz with the notion of change.
Ironically, for an industry that boasts predictive
powers or the ability to infer what consumers want
before consumers do, we have surprisingly few
answers to the question: “How will AI and automation
impact our future?”. In the words of Robert Davidson
“Understanding where Artificial Intelligence fits into
market research may be the last research project we as
humans take on.”
Nightmarish visions come to mind of frantic space
races to the edges of market research, starring HAL-
9000-type machines that guide, control and murder
based on complex frameworks of logical (and flawed)
data processing.
Suddenly, being a market researcher went from
trying to scratch off the “stereotypical dowdy librarian
who is still punching books out” label to holding on for
dear life. It seems like at some point in the past few
years the industry went from something you stumbled
upon in your career to a workplace threatened to be
taken over by machines.
A DIFFERENT PERSPECTIVE
Instead of arguing whether that is or isn’t the case, I’d
like to change the paradigm. There has never been a
better time to actively (re-)think a role in market
Giulia Gasperi is research
research than today. Whether you’re just starting out
director at InSites Consulting
or are at the top of your career, now is a great time to
dr. Pete
The walk-in clinic for
research ailments
Send your questions to Dr. Pete care of angela@esomar.org
Learning from
What can film and theatre teach us about insight?
Business and communications are changing dramatically–
the language of “fail fast”, “agile”, “lean” innovation is
everywhere and people communicate using a complex
web of learning styles, technology, and politics.
© PAWEl KUCZYNSKI
Make it unavoidable…
One of the by-products of storytelling practices is the
upskilling of the team in simple tricks like thinking more
disruptively about formats and channels. In the Boots
support office in Nottingham, everyday, hundreds of
people walk down the corridor to the staff shop to pick
up lunch, or personal items. So, creating an intriguing
illustrated output from a co-creation debrief and putting
I
am delighted to be Society. This is always a difficult esoMar’s inter-
balance to achieve, but I am a national stage at
writing this piece as your strong believer in achieving this insights show 2017
balance as it will then allow us to
President, so let me also say make whatever further For this year’s edition of the
investments are necessary in the Insight Show, ESOMAR is happy to
a BIG thank you to all of you coming years. add a global perspective to the
event, shining a spotlight on three
who voted for me! Finally, let me say how much I value of the top nominated papers
hearing from you; at ESOMAR’s core presented at our 2016 Congress in
As you may have seen in the little is its fundamental desire to serve you New Orleans.
video that was put up on the better; we cannot do this without
ESOMAR website, I have three knowing what it is you like, or what Join lucy Davison, Managing
principal themes that I would like us you don’t like. To that end, I look Director at Keen as Mustard and
all to concentrate in the coming two forward very much to meeting as ESOMAR UK Representative, as she
years: many of you as I can at our different moderates the stage and takes us on
1. The first is to increase the events, and even if we don’t have a a journey exploring impressive
participation of end clients in chance to meet, if you would like to brand-building learnings, from how
ESOMAR; whether it is as a share some thoughts with me, then the youth identify with brands to
member, as a speaker, as a please don’t hesitate to contact next level causal path modelling to
delegate, or as an advisor, the me at: Niels.Schillewaert@esomar.org understanding cultural issues
clients’ perspectives on, and through journalism.
demands from our profession, are Hear from Viacom and Third Eye
most often the driving force(s) for Research out of India, Success
change. we can learn a lot from Drivers out of USA/Germany and
the demands of their daily Strive Insight and luxottica Group
challenges, and so I have out of the UK and Italy.
committed our full team to These are sessions you won’t want
growing their participation in to miss!
ESOMAR. www.insightshow.co.uk
2. Secondly, I would like to see an
increase in our younger members. And to continue your insights journey,
From a slightly selfish perspective, following the Insights Show, ESOMAR
I would like ESOMAR to have a would like to remind you of the MRS
significant, committed, younger 2017 Impact event the following week,
member base, who will become 14–15 March.
our “succession plan”. I am sure www.mrsannualconference.com
you will all agree that it is one of
our great privileges to be able to
facilitate, guide and lead the next
generation of researcher, and
I would like to see them well
ensconced in our community!
3. Finally, I would like to see the
financial position of our Society
stabilised. we have invested in a
significant number of
developments in the past couple
of years, and I believe that it is
now time for those investments to
provide the return to you – our
members – in terms of new
niels schillewaert is
services, but also to reduce the
president of ESOMAR
ongoing costs of running the
I
t is estimated that there are 20 demand for and supply of trafficked personal experiences and
million commercial sex workers in girls to prevent trafficking. perceptions.
India, of whom around 80% are The aim was to understand the
victims of sex trafficking.1 In decision-making of at-risk families what we Found
recent years, the average age of girls and to identify levers to sensitise, Demand side: The living and working
trafficked for sexual exploitation, has alert and empower such families in conditions of rural migrants and poor
fallen from 14–16 to 10–14 years.2 source areas so that the parents young men in the city are
Trafficking and sexual slavery of protect their daughters. And to characterised by loss of control
women and children violates human understand the decision-making of leading to anxiety, distress and
rights and subjects its victims to elca grobler is young men at destination areas who uncertainty. These feelings may
founder of My
cruelty, torture, degrading work and visit brothels, and identify ways to lead to avoidance of purchasing
Choices Foundation
inhumane living conditions. To find a change their behaviour and attitudes. sex if the coping potential is low
solution, the dynamics of this (generating self-pity, submission
problem must be understood and contextual research and helplessness), or towards buying
addressed from both the supply-side The research started with sex if opportunities to create and
(the rural ecosystem in areas from ethnography-style immersions and maintain an illusion of control are
where girls are trafficked) and the observations to understand the available (giving rise to aggression
demand-side (the urban hubs where dynamic context within which and domination).
the girls are forced into commercial behavior is embedded, to generate As it is so difficult to break habits,
sexual exploitation). a set of hypotheses that can be to prevent men from buying sex,
In India, at least 85% of parents updated continuously to reflect the they must be targeted at the
have no idea that the trafficker is not realities from a behavioral and consideration and trial stages which
making a legitimate offer to help. cognitive science perspective. are closely linked with the context of
They care for their daughters and We also conducted parallel peer groups.
agree to let them go because they research to generate and update Equating paid-for sex with rape or
are tricked. Most sex customers do hypotheses, visiting villages, trafficking is unlikely to work because
not know or accept that they are meeting NGOs and agencies peer groups already have strong
sexually exploiting victims of involved in solving this problem rationalisations for such behavior and
trafficking and slavery and the and drawing learnings from avoidance mechanisms of self-
situation is perpetuated by their deployed programmes and research. attribution and will ignore messages
ignorance as much as the evil of the We used Ethnolab, a game that that cause negative self-imagery.
traffickers. simulates the actual context of the Instead, a positive self-image should
Final Mile Consulting was participants in order to solicit real- be promoted, capitalising on the
commissioned by Operation Red world reactions and behaviors. This tendency and desire to see oneself in
Alert of My Choices Foundation to Final Mile proprietary research a good light, for example by
notes
conduct the research and apply technique enabled us to study the portraying an interesting and
1 Zero Traffick:
learnings from cognitive emotions and mental models that relatable group of young boys
Eliminating sex
neuroscience and behavioral influence the behavior of those talking about will-power and self-
trafficking in India,
economics to understand and September 2013
involved. control or using group affiliations
influence the behavior of both at-risk 2 Times of India, This was followed by a hot-state such as sports teams or celebrities,
families and men who buy sex. “India becoming a interview session, which was to create new norms.
This study was conducted to hub for child designed to elicit the participants’ Supply side: the community
identify the levers to change prostitution”, emotions. These conversations are prescribes the social roles and
behavior and reduce both the January 30, 2010 crucial for gathering insights about responsibility of each member of the
Marketing
case
How consumers search
history
online – and on the go
conference Conference
MENAP 2017 LATAM 2017
DUBAI / 21–22 MARCH MEXICO CITY / 5–7 APRIL editor-in-chief
Connecting and #IN: INsights, INtelligence, Simon Chadwick
editorial board
Rex Briggs of Marketing Evolution
Selin Cetinelli of Unilever, Turkey
May John Forsyth of Forsyth Insights LLC
John Kearon of BrainJuicer
ESOMAR world Research Sean Meehan of IMD
Conference Annelies Verhage of Insites Consulting
Christophe Ovaere of ZappiStore
APAC 2017 contributors
SHANGHAI / 17–19 MAY Jo Bowman, Robert Heeg, Tim Macer
Discoveries sub-editor
Deborah Fellows
advertising sales
business@esomar.org
Production co-ordinator
Mascha Ringers
June lay out & art direction
Puntspatie [bno], Amsterdam
ESOMAR world Research Training
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