News notes
In response to the devastation caused by Hurricane Katrina, the Marketing Research Association (MRA) launched a researcher-to-researcher relief assistance blog, designed to aid any marketing and research professionals that have been affected by the storm. The blog, which is hosted on the MRA’s Web site at www.mra-net.org/rrblog.cfm, allows research professionals to exchange information about what they are in need of or what they are able to provide their colleagues in need. For example, a researcher affected by the storm may require temporary office space, phone line and computer use, access to data from the Internet or help keeping track of active studies.
Within minutes of the blog launch in August there were nearly 50 postings with researchers from around the country sharing words of support and offers to help. “The blog is available to the entire marketing research community, not just MRA members,” says MRA Executive Director Larry Brownell. “We have always been a cohesive community and this is just one small way that MRA can help.”
Arbitron Inc., New York, has demonstrated that its Portable People Meter (PPM) system has the ability to track the newest distribution channel being adopted by terrestrial radio broadcasters - HD Radio technology - including its ability to multicast. Arbitron tested the PPM system with HD Radio technology to determine if separately encoded sub-channels could be tracked by its portable audience measurement system. The trials, which took place the week of July 28 on the digital channels of a radio station in one of the top 10 metros, showed that separately encoded multicast channels did not conflict with the main channel’s encoding. In addition, the PPM codes, which were unique to each of the digital channels, were properly identified by the PPM. Previous tests with HD Radio technology have demonstrated that the PPM system can recognize a PPM code in a sub-channel that is encoded at a rate as low as 12 kilobits per second. The Arbitron Portable People Meter has performed successfully with other types of audio distribution and compression systems, including podcasting, Dolby, HDTV, satellite uplinks, Digicypher and Videocypher.
Separately, Arbitron Inc. announced that 189 Walgreens stores in the Houston area will participate in the market trial of the Portable People Meter system.
Arbitron Inc. also announced the formation of an adv
ertiser/agency advisory council as a standing forum for collaboration with advertisers and their agencies. The first meeting of the council will take place on November 9-10 in Washington, D.C.
Germany-based GfK-Nürnberg e.V. announced its commitment to the Friedrich-Alexander University of Erlangen-Nuremberg to fund a chair in marketing intelligence. The GfK Association will donate around EUR 190,000 per year for an undefined period to fund a W3 position (funded professorship) as well as funding a scientific position, several scholarships and other resources for an initial period of five years. The scientific work of the GfK-funded chair will span the economics and social sciences faculty of the Friedrich-Alexander University of Erlangen-Nuremberg and will focus on consumer goods marketing, in particular, market research methods, the implementation of market information in marketing decision-making, consumer behavior and customer satisfaction. With the first and, as yet, only chair for marketing intelligence in a German scientific higher educational establishment, the University of Erlangen-Nuremberg intends to develop its marketing profile.
New York-based NetRatings, Inc. has initiated the Media Rating Council (MRC) accreditation process for its measurement products. Two Nielsen//NetRatings panels will commence the accreditation process: the NetView panel, based on an RDD recruitment methodology, and the MegaPanel of Internet users. The MRC will also examine the integration of data from Nielsen//NetRatings panels with server data, which will provide a single-source measurement currency for counting Internet users, while accounting for consumers’ cookie deletion activity.
Acquisitions/transactions
Synovate has acquired Market Equity, an Australia full-service research firm. Headquartered in Perth and with offices in Sydney, Darwin and Adelaide, Market Equity is a business information consultancy with operations covering market research, marketing planning and knowledge management.
Global Market Insite, Inc. (GMI), Seattle, has acquired three companies - Seattle-based NetReflector, Insight in Shanghai, China, and MI Pro AS in Drøbak, Norway - which will operate as wholly-owned subsidiaries of GMI. GMI has also formed a new strategic alliance with ARO Sistemas in São Paolo, Brazil.
Schaumburg, Ill.-based Experian Marketing Solutions has acquired Vente Inc., an Omaha, Neb., online research and marketing firm.
Alliances/strategic partnerships
Datascension Inc., Brea, Calif., has secured a formal agreement with Harris Interactive, Rochester, N.Y., to provide online programming support for the Harris Interactive online research division, as well as call center solutions. This relationship is valued at approximately $1.5 million per year.
Association/organization news
The Council for Marketing and Opinion Research (CMOR), Bethesda, Md., has named Donna Gillin director of operations. While Gillin was not with CMOR for the past year, she served as the organization’s director of government affairs from 1994 though 2004. CMOR also introduced “Shielding the Profession” as its new tagline for an upcoming advertising campaign and debuted its redesigned Web site at www.cmor.org, which includes an interactive state resource map enabling researchers to read about legislative issues and initiatives on a state-by-state basis.
The Puget Sound Research Forum (PSRF), an association of marketing research professionals in the greater Puget Sound area of Washington state, has announced its 2005–2006 board of directors. Scott Prueter of Common Knowledge Research is the 2005–2006 PSRF president. Paul Kirch of the Olinger Group is president-elect of the PSRF Board and chairs the programs committee. Nancy Hardwick of Hardwick Research is responsible for sponsorship. Eric Larse of Kinesis heads up member development and is also a long-term board member. Richard Secker of Informa Research Services is treasurer. Ann Breese of Microsoft is responsible for member communications. Mark Rosenkranz of Pacific Market Research sits on the programs committee. Ellen Yeckel of Kinesis does PSRF special events. Mike Pritchard sits on the programs committee. He is with comScoreQ2. Marie Bennewitz, a researcher in the wireless telecommunications industry, is secretary. Janet Thorpe of Northwest Research Group is on the membership and special events committees. Manfred Bluemel of Amazon.com sits on the PSRF programs committee. Carolina Greenblat of Nordstrom Inc. is a newcomer to the PSRF board for the 2005–2006 season. Claire Booth of Ipsos is a newcomer to the PSRF board and sits on the programs committee. Will Scharf of Ipsos is past president of PSRF.
Furthering the development of the Professional Researcher Certification (PRC) credentialing program, the Marketing Research Association (MRA) announced the names of those researchers who will construct the first PRC examination to be administered in 2007. The PRC Exam Development Committee will be chaired by Ken Roberts of Cooper Roberts Research, San Francisco. Other committee members are: Nancy Kemmeries, vice president, Friedman Marketing, Harrison, N.Y.; Regina Lewis, director of consumer brand insight, Dunkin’ Brands, Inc., Canton, Mass.; Amy Ienello, market research manager, Bose Corporation, Stow, Mass.; Stacey Hurwitz, consultant, Strategic Research Horizons, Needham, Mass.; Wasse Alemayehu, vice president of Research, GSW Worldwide, Westerville, Ohio; Melinda Denton, director of marketing research, Wells Fargo Bank, Concord, Calif.; Linda Daniel, research director, Harris Interactive, Minneapolis; Margaret Roller, president, Roller Marketing Research, Gloucester, Va.
The MRA has joined the National Organization for Competency Assurance (NOCA), which provides guidance in setting quality standards for credentialing organizations. Through NOCA’s accrediting body, National Commission for Certifying Agencies (NCCA), certification programs may apply for accreditation by NCCA if they demonstrate compliance with each accreditation standard. NCCA’s Standards exceed the requirements set forth by the American Psychological Association and the U.S. Equal Employment Opportunity Commission. Only those who meet these standards may be certified. PRC is currently in the multi-year process of gaining accreditation, and it is anticipated that the PRC credential will be fully accredited by NCCA by February 2007.
Separately, the MRA announced that it has tapped InHouse Communications, a McLean, Va., public relations and advertising agency, to launch a national PR campaign extolling the benefits of marketing research in making business decisions. “The mission of MRA is to advance the practical application, use, value and understanding of the opinion and marketing research profession,” says Executive Director Larry Brownell. “We’re eager to generate greater understanding and visibility for the benefits of marketing research through a public relations campaign targeted at the business community.”
Tim Williams has taken over the role of chairman of the Independent Consultants Group (ICG), an organization of independent market researchers and small consultancies based mainly in the United Kingdom. Williams plans to expand the professional services and training opportunities for ICG members. “The ICG has for years been offering professional advancement workshops and networking forums to its members, which have always been very popular. We’re going to enrich our program to ensure that our members keep up-to-date with industry innovations and hear from market leaders, many of whom are members themselves,” he says.
New accounts/projects
The market intelligence unit of wine and spirits maker Moët Hennessy is now offering Research Reporter to its global marketing teams. Research Reporter, developed by Australian company Insight Marketing Systems, is a Web-based application designed to help corporate research teams use market intelligence within their organizations.
Africa research firm Steadman Group has been awarded a media research tender in Kenya to provide industry currency audience measurement for radio, television and print. The television and radio research will be conducted using the Arbitron Portable People Meter (PPM) system licensed by TNS. Steadman will conduct the initial phase of research using media diaries which will be phased out in favor of PPMs from 2006 onwards. It is anticipated that the first wave of research using PPMs will comprise a panel of 400, building up to a panel of 1,000 PPMs within four to five years.
New companies/new divisions/relocations/expansions
Statistical services firm WMB & Associates has relocated to new offices at 4310 Citrus Blvd., Suite 100, Cocoa, Fla., 32926. Phone 321-637-0777.
Boston communications firm Pohly & Partners has changed its name to The Pohly Company and, as part of a broader restructuring effort, created a communications consulting and market research group to formalize its research offerings.
Nashville research firm 20/20 Research, Inc. has signed a lease on new office space in Miami that will house a focus group facility scheduled to open in the first quarter of 2006. Located at 8350 NW 52nd Terrace in the Doral area of Miami, the facility will house four focus group rooms, each with a client viewing room, separate telephone suite and technology and A/V connections. Anacarla Castrillo-Baquero has been hired as facility manager and will head a staff of 15-20 employees when the facility is fully operational.
Bare Associates International, a Fairfax, Va., mystery shopping firm, has opened a new corporate office in Campinas, Sao Paulo, Brazil. Ronaldo Carlos de Oliveira, director of business development, will run the new office.
Paris-based Ipsos has started a new company in Bangkok called Ipsos Thailand. The firm is a joint venture between Ipsos SA (owning the majority of shares) and three research partners: Jérôme Hervio, Dao Napasab and Prangnoot Suryiaporn.
Encino, Calif.-based L.A. Focus has changed its name to LW Research Group.
Polaris Marketing Research, Inc. has moved its headquarters to a larger space in suburban Atlanta at 1455 Lincoln Parkway, Suite 320, Atlanta, Ga., 30346.
Company earnings reports
Norway-based FIRM announced $7.4 million in revenue for the first half of 2005 compared to $5.7 million for the same period in 2004. EBITDA results for the year’s six first months are $89,000. Revenue in Q2 2005 was $3.5 million, compared to $2.8 million in Q2 2004. EBITDA results for Q2 2005 were ($198,000).
Over the first half of 2005, Paris-based Ipsos reported revenue of EUR 321.8 million, an increase of 12.5 percent on the first half of 2004. Currency effects remained negative, although to a lesser extent than in the last three years, at 1.4 percent. Organic growth of 7.8 percent was ahead of the market average. Operating margin was up 18.0 percent to EUR 24.8 million, profit before tax was up 31.4 percent to EUR 20.5 million and profit (group share) was up 19.6 percent to EUR 10.4 million.
At Harris Interactive, Rochester, N.Y., revenue for the fourth quarter of FY2005 was $54.2 million, up 37 percent when compared with $39.6 million of revenue from the same period a year ago. U.S. revenue was $42.3 million, up 30 percent from $32.5 million for the FY2005 fourth quarter. European revenue was $11.9 million, up 67 percent from the $7.1 million of revenue reported for the same period a year ago. Harris Interactive Service Bureau (HISB) revenue was $1.9 million, down nearly 30 percent from the $2.7 million of HISB revenue reported a year ago. Favorable foreign currency exchange rates added $0.2 million to revenue for the fourth quarter of FY2005.
Global Internet revenue for the fourth quarter of FY2005 was $30.5 million, up 14 percent from last year’s fourth quarter Internet revenue of $26.7 million. For the fourth quarter of FY2005, U.S. Internet revenue was $27.1 million, up 9 percent when compared to the $24.9 million of fourth quarter of FY2004. European Internet revenue for the fourth quarter FY2005 was $3.4 million, up 90 percent from $1.8 million in fourth quarter FY2004. Internet revenue comprised 56 percent of revenue, 64 percent of the U.S. revenue and 29 percent of the European revenue for the fourth quarter of FY2005.
Fourth quarter FY2005 operating income, including one-time items of $1.0 million due to severance payments, was $2.9 million, down 52 percent when compared to operating income of $6.0 million for the same period last year. One-time items are defined as restructuring and other charges for severance costs, asset write-offs and impairments.
Income from continuing operations for the quarter was $0.7 million, or $0.01 per diluted share including after-tax severance costs of $0.6 million, or $0.01 per diluted share. Income from continuing operations for the fourth quarter FY2004 was $24.9 million, or $0.43 per diluted share, which includes an income tax benefit of $20.7 million, or $0.36 per diluted share due to reversal of a valuation allowance against deferred tax assets.
Net income for the quarter, including $0.5 million in income from discontinued operations, was $1.2 million, or $0.02 per diluted share, compared with net income of $24.8 million, or $0.43 per diluted share for the fourth quarter of fiscal 2004.
Revenue for the fiscal year ended June 30, 2005 was $197.0 million, up 42 percent from the $138.5 million of revenue for fiscal year 2004. U.S. revenue was $149.9 million, up 34 percent from the $112.0 million of U.S. revenue a year ago. European revenue was $46.5 million, up 76 percent compared with $26.5 million of revenue in fiscal 2004. HISB revenue for the year was $9.0 million dollars, a 10 percent decrease from the prior year’s level of $10.0 million. Favorable foreign currency exchange rates added $2.7 million to revenue for fiscal year 2005.
Global Internet revenue for fiscal year 2005 was $109.3 million, up 27 percent from last year’s $86.1 million. For the year, U.S. Internet revenue was $97.7 million, up 19 percent when compared to the $81.9 million in fiscal 2004. Fiscal 2005 European Internet revenue was $11.6 million, up 178 percent from $4.2 million in fiscal 2004. Internet revenue comprised approximately 56 percent of revenue, 65 percent of U.S. revenue and 25 percent of European revenue for the year.
Operating income for fiscal year 2005, including one-time items of $2.8 million, was $9.0 million, down 32 percent when compared to operating income of $13.3 million for the same period last year.
Fiscal 2005 income from continuing operations was $4.5 million in, or $0.07 per diluted share, including after-tax one-time items of $1.7 million, or $0.03 per diluted share. Income from continuing operations for fiscal 2004 was $29.8 million, or $0.52 per fully diluted share, and included an income tax benefit of $20.7 million, or $0.36 per diluted share, principally due to reversal of a valuation allowance against deferred tax assets.
Net income for the fiscal year, including a $3.0 million mostly non-cash loss from discontinued operations, was $1.6 million or $0.03 per diluted share, compared with net income of $29.9 million, or $0.52 per diluted share for fiscal 2004.