News notes
Greenwich, Conn.-based NFO WorldGroup has rebranded its core U.S. business, historically known as NFO Research, as TNS NFO. In July 2003, TNS acquired NFO WorldGroup from the Interpublic Group of Companies. Other operating units of NFO WorldGroup have been similarly renamed to reflect their new association with TNS: NFO Research is now TNS NFO; NFO Prognostics is now TNS Prognostics; NFO Automotive is now TNS Automotive Sector; NFO InCom is now TNS Telecoms Sector; NFO Plog is now TNS Transport, Travel and Hospitality Group; NFO Financial Services is now TNS Financial Services Group; NFO FYI is now TNS FYI. In Canada, NFO CFgroup is now TNS Canadian Facts.
The Houston Business Journal reported in March that New York-based Arbitron is considering Houston as a new market in which to launch its Portable People Meter.
Acquisitions
New York-based Arbitron Inc. has acquired Marketing Resources Plus from Interactive Market Systems, Inc., part of the VNU Media Measurement & Information Group, for $8.9 million in cash. Based in Indianapolis, Marketing Resources Plus is a provider of media buying software systems to local and regional advertising agencies for broadcast and print media.
Paris-based Ipsos has acquired a 51 percent stake in the Korean research firm Active Insights Korea, Inc. Based in Seoul, Active Insights, formerly known as NFO Korea, was established in 1994 by Yeong Wook Joo. The company generated $4.5 million in revenue during the last fiscal year. Active Insights, soon to be Ipsos Insight Korea, employs 57 full-time staff and has a network of more than 500 interviewers.
Harris Interactive, Rochester, N.Y., has announcedIMAS International, a full-service research company in Poland, as the newest member of the Harris Interactive Global Network. IMAS International, an Austrian and Polish joint venture started in 1994, operates as a part of a network of IMAS institutes offering full service in Germany, Austria, Switzerland, the Netherlands, Hungary, the Czech Republic, Slovakia and Poland.
Fort Washington, Pa.-based Marketing Systems Group has acquired ARCS (formerly part of DBM Associates, White House Station, N.J.), a supplier of interactive voice response (IVR) products. The ARCS system provides a set of integrated capabilities - simultaneous inbound/outbound IVR options, panel management/scheduling, concurrent Web/IVR survey capabilities and multiple project support. ARCS has tested and implemented integration protocols with the PRO-T-S Dialing System, the QTS Dialer and other research CATI systems. Bruce Mueller, the creator of the ARCS system and former president of DBM Associates, has joined Marketing Systems Group as senior vice president and director of the ARCS Division. In addition, the entire ARCS staff will be moving with Mueller to Marketing Systems Group.
Alliances/strategic partnerships
Arbitron Inc., New York, is enhancing its RADAR network radio ratings service through an agreement with Mediaguide, a Berwyn, Pa., media and marketing information company that monitors more than 2,300 local market radio and television stations nationwide. On April 1, Arbitron began using Mediaguide’s broadcast monitoring technology to verify whether the radio commercials that were scheduled to be aired on affiliated stations of RADAR-rated networks were broadcast as indicated on the network commercial clearance reports. Mediaguide’s technology provides real-time measurement and reporting of music performance and advertising execution. Adopting the Mediaguide technology will allow Arbitron to nearly double the sample of stations and nearly triple the number of programming hours that RADAR monitors to verify the accuracy of the clearance information provided by the networks. Mediaguide’s technology does not require modification or encoding of the advertising creative, nor does it require any set-up at the backend of the station or network.
International Communications Research, Media, Pa., is the newest and only U.S. member of the Intersearch Network, a 10-year-old Netherlands-based consortium of independent research firms.
Association/organization news
In recognition of its first executive director, the Marketing Research Association has introduced the Betsy J. Peterson Marketing Research Association Award, which was established to provide financial assistance for qualified individuals wishing to enhance their education in marketing research by completing the Principles of Marketing Research program administered through the Georgia Center of the University of Georgia. It will be given to selected qualified candidates who are currently in the opinion and marketing research profession or to those interested in pursuing a career in the field. Selection is a two-part process. Applications for the Principles of Marketing Research program are reviewed first by the Georgia Center. Eligible candidates are then reviewed by the Marketing Research Association Award selection committee. For more information visit www.mra-net.org.
CASRO (the Council of American Survey Research Organizations) announced a 12 percent increase in membership in 2003, bringing it to record membership levels of 250 research companies and organizations. Full-service research company membership increased to 189 firms while associate member organizations now number 61. CASRO experienced a 10 percent increase in attendance in 2003 at CASRO-sponsored events, including CASRO University programs and the organization’s annual conference.
Awards/rankings
For the third time, SMG/KRC Millward Brown has won the annual Impactor Award as Poland’s best research agency.
New accounts/projects
Simon Property Group, Inc. has selected New York-based Arbitron Inc. and Scarborough Research to supply it with local market consumer information and software services in all U.S. markets served by the Simon Mall Media Network. The agreement provides Simon Malls with access to Scarborough’s local market survey information detailing consumer profiles of people exposed to mall advertising, software to process the data and training by Arbitron for the Simon Mall media sales staff.
The Home Office in the U.K. has recommissioned BMRB to carry out the British Crime Survey for the next three years. The survey is one of the largest studies carried out by the Home Office and involves interviewing over 40,000 people throughout England and Wales each year.
San Diego-based Claritas Inc. will provide custom demographic data in support of Ribbon Demographics’ efforts to provide tools needed to conduct market studies for the affordable housing industry. Ribbon Demographics, a unit of Livingston, N.J.-based Value Research Group, was formed by members of Value Research Group to develop and market specialized demographic data and reports.
American Cellars Wine Club has selected WebSurveyor Corporation, Herndon, Va., for its online customer satisfaction surveys.
First Service Networks, a Linthicum, Md.-based commercial facilities maintenance company, has integrated Austin, Texas-based Inquisite ’s online survey technology into its interactive e-business system, which tracks, manages and controls the cost of emergency repairs and planned maintenance activities of its customers.
New companies/new divisions/relocations/expansions
Seattle-based Global Market Insite has opened an office in Chicago and tapped Steven Werner to head the new location.
Synovate has moved its Arlington Heights, Ill., office to 222 South Riverside Plaza, Chicago, Ill., 60606.
San Diego-based research firm Castillo & Associates has opened a new office in Coral Gables, Fla. It will be headed by Patricio Hernandez.
Perseus Development Corporation, a Braintree, Mass., research firm, has opened a new office in Toronto.
Company earnings reports
The VNU Marketing Information group achieved solid organic revenue growth across all regions, while operating results (excluding a reorganization charge) on the same basis showed a limited growth due to investments in future growth. Total revenues of the group showed organic growth of 6 percent in 2003. The Americas and Europe performed in line with the announced guidance of 5 percent to 7 percent. ACNielsen’s organic revenue growth amounted to 7 percent. During 2003, Marketing Information achieved revenue growth at constant currencies in all regions in which it operates. This performance was led by Retail Measurement services, which grew 7 percent. Consumer Panel and Customized Research services showed slower growth, while Modeling & Analytics (M&A) services grew as a result of strong performance in ACNielsen.
The Media Measurement & Information group delivered strong operating results in 2003, primarily due to substantial organic growth in total revenues and operating income from its largest business unit, Nielsen Media Research in the United States, and improved operating performance at NetRatings. In line with the 2003 trading update guidance, organic growth in total revenues was approximately 5 percent in 2003, largely driven by the performance of Nielsen Media Research in the United States. The group’s operating margin rose to more than 21 percent from 18 percent in 2002. In the United States, Nielsen Media Research realized more than 9 percent higher revenues at constant currencies, due to continued strong demand for its television audience measurement and related services. Revenues at constant currencies for Nielsen Media Research International (NMRI) were flat and, as expected, operating income declined slightly due to competitive pressures and overall softness in the global advertising environment, which lowered demand for NMRI’s advertising and television audience information. Results improved significantly at VNU’s 65 percent-owned Internet measurement business, NetRatings. Organic revenues grew at a double-digit rate, due to improved renewal rates and selling prices across its clients base and growth from its various product and service offerings. Operating results improved as a result of higher revenue, greater operating efficiencies and a favorable comparison with 2002, when one-off charges totaling EUR 13 million were recorded related to restructuring measures and a settlement of patent litigation with Jupiter Media Metrix.
New York-based FIND/SVP, Inc. announced record increases in operating performance in the fourth quarter and year ended December 31, 2003. For the three months ended December 31, the company reported operating income of $117,000, as compared to a reported operating loss of ($207,000) in the comparable period of the prior year. After giving effect to non-recurring charges, including retirement-related and other severance costs, the company reported a net loss attributable to common shareholders of ($65,000), or $0.00 per share, in the quarter, as compared to a net loss of ($520,000), or ($0.05) per share, one year earlier.
Revenues in the quarter increased 91 percent to $10,236,000, compared to $5,349,000 reported in the fourth quarter of 2002. EBITDA for the three-month period was $479,000, as compared to an EBITDA loss of ($147,000) one year earlier. Adjusted EBITDA in the fourth quarter was $1,115,000, a 219 percent increase over the $349,000 reported one year earlier.
For the year ended December 31, 2003, the company reported operating income of $928,000, as compared to a reported operating loss of ($1,007,000) in 2002. After giving effect to non-recurring charges, including retirement-related and other severance costs, FIND/SVP reported net loss attributable to common shareholders of ($75,000), or ($0.01) per share, as compared to a net loss of ($1,124,000), or ($0.11) per share, for the prior year.
Revenues for the year increased 52 percent to $31,569,000, as compared to $20,828,000 in 2002. EBITDA for the year was $2,189,000, as compared to an EBITDA loss of ($383,000) in 2002. Adjusted EBITDA for the year ended December 31, 2003 was $2,779,000, as compared to $625,000 in 2002. On a pro forma basis, giving effect to the consolidation of Guideline Research Corporation and Teltech as if each had been acquired on January 1, 2003, revenues in 2003 were $37,200,000, and adjusted EBITDA was $3,155,000.