News notes
The St. Louis Business Journal reported in March that Bush O’Donnell Capital Partners had purchased the Delve consumer research business from Maritz Inc. Delve also has a minority investor, James Smith, who has been named Delve’s new chairman. “Maritz Research is refocusing its business in order to concentrate on the areas in which it has the greatest strengths, and those which offer synergies with the larger performance management business of Maritz,” said Maritz Research President Michael Brereton in a statement.
Delve plans to consolidate smaller firms in the field and is looking at businesses in Boston and New York, two markets where Delve does not have a presence, the newspaper reported. The company has a full-time staff of 60 and another 300 part-time researchers who work at its locations around the country. The sale price was not disclosed.
Arbeitsgemeinschaft Fernsehforschung (AGF - TV research partnership), an association of the four major German broadcasting groups, ARD, ProSiebenSat.1, RTL and ZDF, has signed a new contract with GfK Fernsehforschung to measure TV ratings in Germany on a continuous basis. The contract between AGF and GfK Fernseh-forschung, which is now in its fifth consecutive term, begins on January 1, 2005 and will run at least until December 31, 2011. AGF will then have the option of extending the contract for another two years until the end of 2013. The long contract term will enable GfK Fernsehforschung to offer AGF its services at virtually the same rates. The contract volume over the seven-year term amounts to more than EUR 90 million.
While the panel will operate exactly as before, technology will be introduced to improve the AGF/GfK Fernsehforschung system. The contract includes agreements to supply new software which will enable TV stations, marketers, advertising agencies and advertisers to analyze TV usage data. The upgraded analysis software will be available from mid-2006. Use of a new metering technology from 2007 will be regulated in a separate contract.
Seattle survey software firm QuestionPro, Inc. announced the issuing of its 500th academic research grant for conducting survey research online. Under the program, QuestionPro offers free access to its Web-based survey creation and analysis software at QuestionPro.com. Qualifying institutions are allowed to generate and deploy a survey with up to 5,000 responses over a six-month period.
The program is offered to faculty and students of accredited universities worldwide, working on academic research projects that have not been funded by any outside sources. To date 500 surveys have been created, with more than 31,000 responses. QuestionPro will continue the academic research grant program in 2004.
Arbitron Inc ., New York, has announced plans to revamp the offerings of its Internet Broadcast Services division. The company ceased monthly and weekly MeasureCast ratings, which measured the audiences of audio content on the Internet, as of March 28. Arbitron plans to offer a revised service for Internet broadcasters designed to be better aligned with the needs of the market. Commenting on the announcement, Pierre Bouvard, president of Arbitron New Ventures, said in a company press release, “We remain committed to the Internet broadcast business and continue to believe in the viability of this medium and its long-term market potential. However, the investment needed to sustain the current method would have been far greater than the revenue potential for the service. By revamping our services, we hope to provide better value for our customers and a reasonable return for our investors.”
Separately, Arbitron released a summary of response rates, consent rates and return rates for all 286 markets measured in its fall 2003 survey. The average metro survey area response rate declined 1.4 percentage points from 34.5 percent in fall 2002 to 33.1 percent. The return rate increased 0.6 points, from 55.5 percent in fall 2002 to 56.1 percent in fall 2003. The consent rate declined 3.2 points, from 61.4 percent in fall 2002 to 58.2 percent in fall 2003. Since spring 2003, when Arbitron announced its most recent response rate initiatives, the company has: sent larger diary premiums to Black and Hispanic households in any market or county that did not receive Black or Hispanic Differential Survey Treatment; expanded treatments targeting males 25-34 in additional markets; opened up a second Arbitron interviewing center (in Houston); begun transmitting appropriate identifying information for Caller ID displays for all calls placed from the two Arbitron interviewing centers; permitted respondents in households that get a preplacement mailer to say “yes” to the Arbitron survey via a secure Web site. In upcoming surveys, Arbitron is planning to: improve the starting sample by removing ineligible phone numbers, such as businesses, which will allow interviewers to concentrate on valid contacts (Winter 2004); provide additional incentives for diary consent and return in 40 “low-response” markets by adding a letter and $1 preplacement for all households, adding a $5 postplacement premium for Black, Hispanic and young male households in the low-response markets that do not currently receive the “promised incentive” treatment, and enhancing the script for the recruiting call to ensure that respondents are aware of the incentives for return being offered to their household (spring 2004); add new incentives for consent for respondents who refuse early in the recruiting process in all markets (fall 2004). Arbitron is also continuing its program of methods research tests to devise techniques to enhance consent and return efforts in future surveys.
Kantar will consolidate its operations capabilities in the U.K. under a single management structure. This will involve all U.K. departments or functions involved in the quantitative research process from scripting through data collection to data processing. The Operations Centre will be managed by a team of senior operations professionals drawn from Kantar’s U.K. businesses.
Acquisitions
London-based Synovate has reached agreement to acquire Symmetrics Marketing Corporation , a customer loyalty measurement and management research and consulting business. Headquartered in a Scottsdale, Ariz., Symmetrics has offices in Indiana, California and Texas and employs 53 staff. The company was founded in 1996 by Lawrence Crosby.
Nuremberg, Germany-based GfK Group has acquired Arbor Inc ., a Media, Pa., research firm, effective retroactively from January 1. Newly named GfK Arbor, the firm specializes in communication and brand research and executes tracking surveys on brand value and brand dynamics. With 92 employees, Arbor generated sales totaling $24.9 million in 2003. The managing directors of Arbor, Martin R. Lautman, John Wittenbraker and Joseph C. Zoll, will continue the management of the new company.
Harris Interactive, Rochester, N.Y., has acquired Novatris S.A. , a Paris-based online market research firm with $3 million in revenue. The addition of the one million Novatris panel members to the current Harris Interactive European panel of 700,000 will create a combined online research panel of 1.7 million members. Novatris will become part of Harris Interactive’s wholly owned subsidiary, HI Europe. Novatris will also serve as HI Europe’s service bureau to provide online data collection to other market research firms.
Alliances/strategic partnerships
Sandelman & Associates, a Villa Park, Calif., research firm, has renewed its contract with Las Vegas research firm Datascension International . This renewed contract will generate revenues in excess of $3.5 million for Datascension. Sandelman & Associates utilizes Datascension to conduct research surveys on behalf of its food industry clients.
WebSurveyResearch, New York, and DataTactics, Inc. have signed a letter of intent to deliver online physician surveys.
Research firms Millward Brown and Invoke Solutions are broadening their existing relationship in North America. The two companies, who joined forces in July, 2003 will now enter into an exclusive partnership within the marketing communications arena. Millward Brown currently uses Invoke Solutions’ Dynamic Survey software to drive its AdSelector offering.
Strategies, a market research and online communications company in Jordan, has become the newest member of the Rochester, N.Y.-based Harris Interactive’s global network.
Association/organization news
In March, Ted Vonk left his position as director general of ESOMAR (the European Society for Opinion and Marketing Research). He will continue to contribute to a number of ongoing projects. Management team members Anna Alù and Wilfred van der Lee will continue to be responsible for ESOMAR’s ongoing operations. A search for a new director general is in progress.
Britain’s Market Research Society (MRS), the British Market Research Association (BMRA), and the Association of Users of Research Agencies (AURA)have agreed to enter discussions about how membership services and representation on behalf of both individuals and organizations can best be delivered in the future. The discussions will also address the structure of the market research associations. The discussions will include working groups looking at various aspects of what existing members require as well as consultations with others who are not in membership. Areas for review will include: standards, legislation, training and education; events, publications and communications; industry statistics, membership marketing and services.
The Mystery Shopping Providers Association (MSPA) recently passed the 12,000 mark of certified mystery shoppers. Several MSPA Gold Certification Workshops have already been held in 2004 and more have been scheduled through mid-year; approximately 24 of the workshops will be held during 2004. To attend the Gold Certification Workshop, registrants must first obtain their Silver Certification through a Web-based educational program and pass an exam. In November 2002, MSPA introduced a new Shopper Certification program. The first phase is an online educational program. Upon completion, the shopper receives Silver Certification, which is recognized as a hallmark of professionalism by the member companies of the MSPA. To date, more than 11,000 shoppers have achieved Silver Certification status and over 900 shoppers have achieved Gold Certification status.
Awards/rankings
Indianapolis-based Walker Information was named a finalist in the 12th annual CIO Enterprise Value Awards for the development and implementation of the Walker SmartLoyalty System - an Internet-based customer loyalty management solution. These awards recognize companies that demonstrate how changes, adjustments or additions to their information technology systems have provided positive results for their businesses. The Enterprise Value Awards recognized 15 companies as finalists - including 10 winners and five runner-ups - from a group of nearly 150 applicants in multiple industries. In the final stage of judging, Walker Information was selected as the runner-up in the professional services category.
New accounts/projects
New York-based Arbitron Outdoor has signed Lamar Advertising Company to its Scarborough USA+ consumer service.
The New Jersey Hospital Association (NJHA) has increased its use of Herndon, Va.-based WebSurveyor’s online survey solutions for its member satisfaction surveys. The NJHA has been a WebSurveyor customer for three years, but demand for the online survey tool has caused the association to double its survey capacity.
New companies/new divisions/relocations/expansions
In March, Paris-based Ipsos moved into new premises at 35 rue du Val de Marne, Paris 13ème.
Resource Systems Group has opened an office at 205 West Wacker Dr., Suite 615, Chicago, Ill., 60606, to house its market integrated business solutions practice. The phone number is 312-673-3320.
Seattle-based GMI (Global Market Insite) has opened a regional office in Honolulu, Hawaii. The office, located in the Executive Centre complex in downtown Honolulu, will provide additional support for GMI’s Asia and Pacific-Rim business as well as late-evening project management support for customers located in North America.
Health Focus International has moved to 449 Central Ave., Suite 205, St. Petersburg, Fla., 33701. Phone 727-821-7499. Fax 727-821-7764.
New York research firm Schulman, Ronca, & Bucuvalas, Inc. (SRBI) has launched its consumer insights division. Headquarter-ed in the Cincinnati area, the new division’s leadership will include Duane Clement, Joe Ferris III and R. Bruce Westcott.
Canadian data collection firm Opinion Search, Inc. has opened a new sales office in Chicago. Leading the new office is Pam Bruns, vice president, client services.
Company earnings reports
United Business Media’s NOP World reported increasing operating profit in 2003 by 7.8 percent to £19.3m (2002: £17.9m) on flat underlying revenue. Revenue grew in the second half despite the weakness of the U.S. dollar. Syndicated and continuous businesses such as AFI and MRI delivered strong performances and the health care business is recovering. A major restructuring program is underway to improve margins, focus the business around its core sector strengths - automotive, health care, financial, business and technology, and consumer and retail - and introduce global account management. Despite the expensing of costs associated with this major restructuring and an increased level of organic investment, operating margins rose to 9.5 percent (2002: 8.4 percent).
Paris-based Ipsos reported consolidated 2003 revenues totaled EUR 569.7 million, up 6 percent with respect to the EUR 538.5 million generated in 2002. Organic growth, at constant scope and exchange rates, was 9.4 percent. In the fourth quarter, organic growth was very close to the level seen in the previous nine months, at 9.3 percent. Changes in the scope of consolidation increased revenues by 6.5 percent. Most of the companies that Ipsos acquired in 2003 were consolidated either from July 1 or October 1, when their integration became effective. Currency effects dragged down revenues by 10.2 percent.
The rise in the euro against most of Ipsos’ other currencies had a major impact in 2003. In today’s context, the translation of foreign-currency revenues into euros has a substantial effect. At constant exchange rates, Ipsos would have generated revenues of around EUR 625 million in 2003, up close to 16 percent with respect to 2002. However Ipsos’ overall exposure to currency movements is very limited, since most of its costs are in the same currencies as its revenues. As regards industry rankings that are based on U.S. dollar figures, Ipsos’ 2003 revenues will be quoted at $644 million as opposed to $509 million dollars in 2002, an increase of almost 27 percent.
In geographical terms, business volumes grew strongly in Asia-Pacific (particularly in China but also Australia), in Latin America and North America. Growth in Europe was 3 percent in 2003, as opposed to 1.7 percent in 2002. European growth accelerated to 5 percent in the fourth quarter, from 2 percent in the first nine months of the year, on the back of strong performance in the U.K., Southern Europe and Central Europe.
Each business line achieved firm growth, including media research, where revenues had stagnated in 2002 due to the cyclical downturn in the advertising market. Growth was high in advertising research, which, until the end of 2003, was the only specialization to have a global, dedicated and integrated organization, operating under the Ipsos ASI brand.
NetReflector, Inc. announced that it ended 2003 profitably, posting its second year in a row of profitable results. In the past two years combined, the company says it signed up more than 100 new customers and achieved a 220 percent revenue growth.