News notes
Gazelle Global Research Services , New York, has received national certification as a Women’s Business Enterprise by the Women’s Presidents’ Educational Organization - New York, a regional certifying partner of the Women’s Business Enterprise National Council. The certification process is designed to confirm the business is at least 51 percent-owned, -operated and -controlled by a woman or women.
Educational Research Center of America Inc. (ECRA), Morristown, N.J., has agreed to change how it collects and discloses students’ personal information under a settlement reached with Illinois Attorney General Lisa Madigan and 36 other attorneys general. ECRA entered into the settlement based on allegations that it asked high school and junior high students for personal information such as their ethnic background, honors won and sports and extracurricular activity participation, but failed to clearly and conspicuously disclose opt-out procedures to those students and their parents, according to Madigan. ERCA also allegedly offered educators $40 and $50 gift cards from companies such as Staples, Visa and OfficeMax to encourage them to distribute surveys to students.
Under this settlement, ERCA is required to clearly disclose how students or parents of students under 18 can opt out of the survey. ERCA also will cease offering financial incentives to educators to distribute the survey to students. The company did not admit any violations of state consumer protection statutes, and it will pay $200,000 to the state for investigative costs, attorney fees and consumer education and litigation.
New York research company Arbitron Inc. issued the following statement in response to the ruling by the United States District Court, Southern District of New York, regarding the case of Arbitron’s Portable People Meter (PPM) audience measurement system allegedly undercounting minorities:
“Today’s ruling does not impact Arbitron’s right to publish our Portable People Meter audience estimates in New York. We asked the federal court to protect our right to provide the radio industry with the up-to-date PPM audience estimates it needs. Following our efforts, the New York Attorney General chose not to seek a temporary restraining order adversely impacting our right to produce PPM estimates.
“Now that Arbitron has commercialized the PPM service in New York and other key markets, we look forward to defending our interests. Broadcasters, agencies and advertisers need continual PPM audience estimates if radio is to remain competitive in an increasingly complex and crowded media marketplace.”
Separately, Arbitron has adjusted the PPM commercialization schedule. Four markets - Kansas City, San Antonio, Salt Lake City and Las Vegas - are scheduled to commercialize with the December 2009 PPM survey report (November 12-December 9), slated for release on December 31, 2009. Previously, these four markets were slated to commercialize with the release of the March 2010 PPM survey report. The final diary-based audience survey in these four markets will be the Summer 2009 survey (June 25-September 16).
Five markets - Milwaukee; Charlotte, N.C.; Columbus, Ohio; Providence, R.I.; and Orlando, Fla. - are scheduled to commercialize with the release of the September 2010 PPM survey report in October. Previously, these five markets were scheduled to commercialize with the release of the June 2010 PPM survey report. The final diary-based audience report in these four markets will now be for the Spring 2010 survey (April 1-June 23.)
New York researcher The Nielsen Company and Integrated Media Measurement Inc. (IMMI), a San Mateo, Calif., research company, have suspended their out-of-home television viewing measurement service. The companies cited difficult economic times, which had led to “limited economic support” for the service. The partners have not ruled out restarting the service sometime in the future, and Nielsen says it will “continue to work on out-of-home measurement solutions, including efforts with IMMI.”
Media-Screen, a San Francisco research company, has changed its name to Netpop Research LLC. The Netpop Research Web site (www.netpopresearch.com) has also been updated.
Acquisitions/transactions
New York researcher The Nielsen Company and London research company WPP have signed an agreement to swap certain assets. Nielsen will own 100 percent of AGBNielsen Media Research, an international television audience media measurement business, by acquiring the 50 percent held by WPP. In return, Nielsen will transfer to WPP: SRDS, the provider of media rates and data to the advertising industry; PERQ/HCI, which provides a range of services for media planning in the field of health care; and its 11 percent share in IBOPE PDM, IBOPE LA and IMI.com, all part of the IBOPE Group, a Brazil-based research firm, of which WPP previously held a 31 percent stake. These assets will be added to The Kantar Group, WPP’s information, insight and consultancy division.
Little Rock, Ark., research company Acxiom Corporation has acquired Quinetix LLC , a Rochester, N.Y., research company, after having partnered with Quinetix for more than five years.
Alliances/strategic partnerships
Mountain View, Calif.-based Google and London research company WPP have partnered to fund a grant program to support research into how online media influences consumer behavior, attitudes and decision-making. WPP and Google will contribute up to $4.6 million over three years to endow the Google and WPP Marketing Research Awards Program.
The program will be overseen by Professor John Quelch, senior associate dean of Harvard Business School and a non-executive director of WPP; Hal Varian, Google’s chief economist; and Glen Urban, former dean of the Sloan School of Management at the Massachusetts Institute of Technology. The committee will work with WPP and Google to decide which grant proposals will be funded and ensure the integrity, delivery and impact of the research. In the first year, the Google and WPP Marketing Research Awards Program hopes to award up to 12 grants.
TruMedia Technologies, a Tampa, Fla., research company, has partnered with Samsung Electronics Corporation , Seoul, South Korea. TruMedia’s iCapture PROactive Merchandising (PROM) solution for digital screens has been integrated into and will be sold together with Samsung’s MagicInfo player-enabled CX Series of professional large-format displays. TruMedia’s iCapture PROM connects with Samsung’s MagicInfo Player to select ads and other content based on the viewing audience’s size and demographics. In addition to software integration, Samsung is licensed to manufacture TruMedia’s iCapture AlliO Hardware, a sensor and video-processing device, which Samsung will market with its PROM-enabled screens.
Star Data Systems, a Jupiter, Fla., research company, has partnered with CMS Research , Toledo, Ohio, to offer interactive voice response (IVR) surveys to Star Data clients. In turn, CMS will offer tabs and online dashboard capabilities for IVR data collection studies to consulting and retail clients.
Association/organization news
The Council for Marketing and Opinion Research (CMOR), Glastonbury, Conn., and The Marketing Research Association (MRA), New York, have merged their memberships in an attempt to remedy the concern of industry members that there are too many associations partitioning the services needed and increasing the cost of companies to receive the professional support they need. The new body will be known as MRA, and CMOR services will be labeled as such with the clarification that they are a division of MRA. Services that CMOR previously charged for, such as the compliance guide and respondent cooperation studies, will become core member benefits.
The Qualitative Research Consultants Association , St. Paul, Minn., has appointed its new board of directors: Manuela Fletcher, Andrew Fletcher Consulting Ltd.; Susan Thornhill, Thornhill Associates; Foster Winter, Sigma: Research Management Group; Chris Kann, CSK Marketing Inc.; Abby Leafe, Customer Strategy Consulting; Nancy Hardwick, Hardwick Research; Ilka Kuhagen, IKM; Nancy Ulrich, Ulrich Research Services; and Sharon Livingston, The Livingston Group.
The Council of American Survey Research Organizations , Port Jefferson, N.Y., has elected its board officers for 2009: Kevin Menk, Strategic Resource Partners L.L.C.; Andrew Morrison, Market Strategies Inc.; Robin B. Arnold, The Gilmore Research Group; Roseanne Luth, Luth Research; William J. “Jay” Wilson, Cambiar L.L.C.; Michael Brereton, Maritz Inc.; and Craig Stevens, e-Rewards Inc.
Awards/rankings
Chicago research company SPSS Inc. has honored Experian, a Dublin, Ireland, credit information company, and MetLife , a New York insurance company, as recipients of its fifth-annual Insight Awards presented at the 2008 Directions User Conference in Las Vegas. The Insight Awards honor SPSS customers on their use of a predictive analytics solution that has helped to align analytics, IT architecture and business process to create sustainable innovation.
The Pharmaceutical Marketing Research Group (PMRG), Gainesville, Fla., has honored Roger Green with The RR Fordyce Award. The award recognizes his work in founding Roger Green and Associates; his contributions as president to the growth of Dresher, Pa., research company TVG; his role as a research innovator through the development of dynamic practice simulation; and his commitment to the growth of PMRG, where he served as president over the past year.
Decision Analyst Inc. , an Arlington, Texas, research company, has received a Best of Bull’s-Eye award from Minneapolis retailer Target Corp. for its role as one of Target’s top vendors. Decision Analyst has conducted satisfaction tracking studies for Target for several years.
Evansville, Ind., research company ARSgroup has received a Supplier of the Year Award and an Excellence Award from Cincinnati-based Procter & Gamble Co. for being one of Procter & Gamble’s top-performing suppliers.
Dallas research company e-Rewards Inc. has received a 2008 Momentum Award for National Employment Growth from the Dallas Regional Chamber as a result of e-Rewards’ increase over the last year.
Angus Reid , CEO of Angus Reid Strategies, a Vancouver, B.C., research company, has received a Doctor of Laws, honoris causa, from Carleton University in Ottawa. He was recognized for his contribution to the field of public opinion research.
San Francisco research company MarketTools Inc. has been named by Research Business Report as the winner of the 2008 High Impact Market Research Project Award. The award recognizes MarketTools’ TrueSample SurveyScore, a process designed to provide an objective measure of survey quality and engagement.
New accounts/projects
AirTran Airways, Orlando, Fla., has invited its AirTran A+ Rewards members to enroll in the e-Rewards Opinion Panel, a panel developed and managed by Dallas research company e-Rewards . Invitees who join the panel will be able to earn A+ credits by completing online market research surveys.
EYE, a New York mall media company, has signed an agreement with Arbitron Custom Research , New York, to measure the effectiveness of mall-based advertisements and the psychographics of EYE mall shoppers. Arbitron will conduct on-site mall surveys in multiple markets across the U.S.
Omaha, Neb., research company infoGROUP has chosen Maponics Neighborhood Boundaries , a Norwich, Vt., mapping and data company, to power its neighborhood-based selection list.
TV ratings company TAM Ireland has reappointed AGB Nielsen Media Research to conduct audience measurement services in the country. The contract will run for the next five years, coming into effect when the current contract expires in September 2010.
Redlands, Calif., geographic mapping software company ESRI has been selected for its services by the City of North Las Vegas Fire Department , which will use geographic information system (GIS) software to help prevent emergencies from occurring, reduce their consequences and provide first-responders with the information while deploying to an emergency.
Separately, the U.S. Environmental Protection Agency has renewed its five-year enterprise license agreement (ELA) with ESRI to continue its use of GIS for nationwide service.
Additionally, Southwest Florida Water Management District has signed an ELA with ESRI to support the expansion of an accessible GIS that provides employees with the data and tools to perform their work. The agreement also supports the technological advancement of two information systems built on ArcGIS Server.
Nippon Research Center (NRC), Tokyo, has selected Confirmit , an Oslo, Norway, research software company, to conduct its Web-based survey projects, clean and process survey data and provide online reporting access to its clients. NRC will use Confirmit for domestic and international studies that are conducted across its online panel.
Cumulus Media Inc., an Atlanta radio company, has chosen New York researcher The Nielsen Company to provide audience measurement and radio ratings in 50 small- and mid-sized U.S. markets. Clear Channel Radio , San Antonio, will also subscribe to the syndicated service in 17 of the markets in which the service will be offered.
New companies/new divisions/relocations/expansions
Jon Last, former vice president for Conde Nast’s Golf Digest Publications, has launched a full-service marketing research company, Sports and Leisure Research Group , at 445 Hamilton Ave., Suite 1102, White Plains, N.Y., 10601. Phone 914-358-3558. Joining Last will be Peter Van Brunt and Michael Mermelstein, both of whom will continue operating their current businesses while also working with Sports and Leisure Research Group.
The Photizo Group, a Versailles, Ky., research company, has launched a new subsidiary. The Woodford Group , based in Warwick, N.Y., will focus on providing the financial community with business intelligence and analysis of the printing and imaging markets.
TNS Compete , the Boston analytics division of TNS, has launched its retail and consumer products practice. The retail and consumer products practice is an extension of TNS Retail Forward and TNS Sorensen.
Montreal research company Voxco has created the Voxco Solutions Group , intended to join the four first-line service teams: professional services, project management, training and technical support. Emmanuel Greciet has been promoted to the lead this group.
Research company earnings/financial news
New York-based The Nielsen Company announced its financial results for the third quarter and the nine months ended September 30, 2008. Reported revenues for the third quarter of 2008 were $1,260 million, an increase of 6 percent over reported revenues for the third quarter of 2007 of $1,188 million. Excluding the impact of currency fluctuations, revenues for the quarter increased 3 percent. Reported revenues for the nine months ended September 30, 2008 were $3,778 million, an increase of 10 percent over reported revenues for the nine months ended September 30, 2007 of $3,429 million. Excluding the impact of currency fluctuations, revenues for the nine months ended September 30, 2008 increased 6 percent.
Reported operating income for the third quarter of 2008 was $124 million, compared to $77 million for the third quarter of 2007. For the nine months ended September 30, 2008, reported operating income was $408 million, compared to $233 million for the nine months ended September 30, 2007.
IMS Health , Norwalk, Conn., announced third-quarter 2008 revenue of $573.7 million, up 6 percent or 3 percent year-over-year on a constant-dollar basis. Net income and earnings per share (EPS) grew 33 percent and 41 percent, respectively, in the quarter. After adjusting for certain items, net income rose 11 percent and EPS was up 19 percent.
Operating income in the third quarter of 2008 was $124.0 million, up 6 percent or 1 percent constant dollar year-over-year.
Net income on a GAAP basis was $75.9 million, compared with $57.1 million in the year-earlier quarter, an increase of 33 percent. When adjusted for the items above, net income on a non-GAAP basis for the 2008 third quarter would have been $79.4 million, compared with $71.6 million in the year-earlier quarter.
For the first nine months of 2008, revenues were $1,748.6 million, up 10 percent or 4 percent constant dollar year-over-year. Operating income for the first nine months of 2008 was $371.7 million, up 7 percent on a reported basis and flat constant dollar, compared with $346.3 million in the year-earlier period. Net income on a GAAP basis was $212.8 million, compared with $216.1 million in the first nine months of 2007.
London-based Kadence Group announced results of its 2008-2009 financial year, with first-quarter revenue up 68 percent on the same period last year. Strong growth across all the company’s offices in the U.K., Asia-Pacific and India, in addition to the U.S., pushed first-quarter revenue to more than $5 million.
The company attributes most of the growth to additional business from its existing client base. In particular, it pointed to notable interest from the agricultural sector in the U.S., technology in the U.K. and financial markets in Asia.
Rochester, N.Y.-based Harris Interactive reported a first-quarter loss of $2.3 million, compared with a profit of $1.1 million a year ago, which it attributes to deepening economic turbulence in the U.S. combined with the anticipated decline in its health care revenue. Revenue fell 9 percent to $50.3 million while operating loss was $3.2 million, compared with an operating profit of $1.6 million last year.
In addition, the company said it will record a $1.7 million second-quarter charge related to the appointment of new CEO Kimberly Till and a reduction of 27 U.S. jobs.
Reston, Va.-based comScore reported a 37 percent third-quarter revenue increase to $30.7 million. Net income declined 85 percent from $3.6 million to $600,000 but rose 24 percent to $5.7 million on an adjusted basis. Excluding the impact of the M:Metrics acquisition and transition-related costs, free cash flow was approximately $4.0 million. The firm says it added 32 new customers during the third quarter of 2008.
Nuremberg, Germany-based GfK Group announced third-quarter and year-to-date financial growth. In the first nine months of 2008, organic sales growth rose sharply by 7.2 percent (prior year 5.5 percent) to EUR 883.8 million. Adjusted operating income for the first nine months climbed to EUR 104.3 million (1.7 percent up on the prior year).
GfK reported particularly strong growth in the high-margin retail and technology sector as well as in the growth regions of Central and Eastern Europe, Asia-Pacific and Latin America.
With sales growth in organic terms of 7.2 percent, GfK outstripped its performance on a like-for-like basis (prior year 5.5 percent) and continued the strong sales trend of the first half of the year. Currency effects reduced sales growth by 3.9 percent. Acquisitions increased sales by 2.7 percent. On a cumulative basis, after currency effects and acquisitions, sales rose by 6 percent to a total of EUR 883.8 million. Adjusted operating income amounted to EUR 104.3 million, which represents an increase of 1.7 percent compared with the same period in the prior year. The margin, which reflects the ratio of adjusted operating income to sales, amounted to 11.8 percent in the first nine months of 2008, continuing to rise compared with the half-year figure of 11.3 percent.
In the third quarter of the current year, GfK achieved organic sales growth of 4.8 percent, increasing total sales by 5 percent to EUR 294.1 million. Adjusted operating income amounted to EUR 37.5 million and the margin to 12.7 percent. In the first nine months of 2008, the GfK Group achieved strong accumulated organic sales growth of 7.2 percent. Acquisitions contributed a total of 2.7 percent. Currency effects arising mainly from the revaluation of the euro against the U.S. dollar reduced sales by 3.9 percent.