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Adapting Research Strategies: Trends and Challenges in the Analytical Industry

REPORTS & ANALYSISAdapting Research Strategies: Trends and Challenges in the Analytical Industry

The past two years have been stable for the research industry, with year-over-year revenues showing growth. Recent data reveals that in the first three quarters of last year, one in every three studies was conducted using the CAWI method. Similar results were seen in retail audits and mystery shopping, while CATI surveys became increasingly challenging to perform. This year, due to economic uncertainty, many companies may reduce their research budgets, with significant impacts likely in tourism, entertainment, luxury goods, the public sector, and automotive. Conversely, retail and e-commerce sectors are expected to intensify their efforts. Therefore, the analytical and research sector should better adapt to the current realities and directions chosen by businesses in these industries.

2024 Summary

Based on data from the first three quarters of last year, the research industry saw a single-digit percentage increase in revenues. It’s important to note that the fourth quarter, which significantly impacts revenue and margin, can only be assessed by the end of January at the earliest. However, it is highly probable that growth occurred, and 2024 was certainly no worse than 2023.

Generally, last year appeared quite stable and markedly better compared to the pandemic years. In contrast, 2023 exhibited much higher revenue growth dynamics than 2021 or 2022, a trend that continued into 2024, albeit with slightly less momentum. The market did not experience any collapse or even symptoms of one. Orders remained about the same as the previous year, with a slight indication of an increase.

According to nine-month data, one in three studies was conducted using the CAWI method, which is expected to be consistent throughout the year. Retail audits and mystery shopping yielded identical results, with one in ten studies employing the CATI method. Detailed summaries will be available in a few weeks after detailed reports from most market research firms are released.

However, the increasing difficulty in conducting CATI surveys is already evident. Respondents are less willing to participate in telephone surveys, partly because we are busier and less available. Media reports about scams and attempts to extort money or data have made respondents suspicious and cautious, resulting in higher survey execution costs. For instance, it now takes at least 2-3 times more attempts to complete a single telephone interview than it did 3-4 years ago, affecting both the project timeline and the overall costs.

CAWI prices have not changed significantly, except for increases due to project man-hours. In recent months, there has been a rise in bot activity and bot farms. While the industry manages this well, it comes at the cost of time needed for project control, including implementing security measures, continuous improvement, and constant monitoring of indicators. These hours are not counted at the minimum wage rate, as top-market IT professionals are often required.

A clear trend in recent years is the shift toward more economical and flexible research methods. Facing limited budgets, clients are increasingly choosing cheaper options like online surveys, consumer panels, or quick quantitative studies. Costly and time-consuming qualitative methods, such as traditional focus groups, are losing popularity, especially during crises.

Agencies that can adapt their offerings to these realities, such as by automating analytical processes or implementing AI-based tools, stand a chance of maintaining competitiveness despite falling prices. This could be the scenario for the analytical and research industry in Poland in 2025.

The research market’s situation this year will largely depend on geopolitical factors, consumer sentiment, and corporate concerns. These factors directly affect marketing budgets, which underpin the entire analytical and research industry.

In the face of projected economic uncertainty in 2025, market analysts expect significant changes in expenditure structures. In crisis conditions, companies often cut costs considered less essential for ongoing operations, and market research budgets are among the first to be reduced.

Small and medium-sized enterprises and sectors sensitive to economic changes, such as tourism, entertainment, and luxury goods, are particularly vulnerable to cost reductions. In these sectors, pausing investment in research may become a common practice, affecting the revenues of research agencies and potentially forcing them to lower their service prices.

Public sector and automotive are sectors where cuts are most expected. In the public sector, there is a societal need to save wherever possible. The automotive industry has been facing several internal issues for some time, leading to larger budget cuts, particularly affecting advertising and research sectors.

Industries to Watch

Conversely, there are sectors that do not change their spending habits in uncertain times and even increase their research investments. Challenges associated with rapidly changing consumer preferences mean that companies seek more precise data to better adjust their market strategies.

One of the more promising sectors is the broad retail industry, which continues or increases investments in market research even under tough economic conditions. Consumer habits are crucial, especially during times of rising inflation. Changes in customer behavior, such as increased price sensitivity or the search for cheaper substitutes and frequent price promotions, require constant monitoring. Therefore, this sector should be closely watched by the analytical and research community.

FMCG companies will intensify research on price elasticity, promotion effectiveness, and consumer preferences towards own brands. Cooperation within the industry will develop, stemming from subcontracting parts of projects. This sector could play the largest role in potentially expanding the research market in 2025. Pharmaceuticals and electronic media are also sectors to watch.

The e-commerce sector should also be closely examined. Like the stationary retail trade, this industry is rapidly developing and becoming increasingly significant due to ongoing digitization. Consumers are more and more willing to use online channels, forcing companies to intensively monitor their behaviors.

In challenging times, research activities in the e-commerce sector focus on analyzing data on purchasing paths, optimizing shopping baskets, and the effectiveness of digital marketing campaigns. Research agencies offering big data analysis tools and real-time monitoring can expect increased interest from this industry next year.

In conclusion, it is worthwhile to develop better-tailored analytical and research solutions and tools for the broad trade sector, including FMCG and e-commerce. Where much is happening, there are more needs, especially the most practical ones, but also—and perhaps most importantly—those most technologically advanced.

About the author: Łukasz Zieliński is an expert in the analytical and research market with the international firm SYNO Poland.

Source: Manager Plus

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