Editor’s note: Mario X. Carrasco is co-founder and principal of ThinkNow Research, a market research agency based in Burbank, Calif. This is an edited version of a post that originally appeared here under the title, “How do we define innovation in market research?”
In 2018, the market research and insights industry will end as we know it! Well, that’s what some people are saying. Adoption of emerging technologies like automation and artificial intelligence has fed the water cooler rumors of the industry’s demise. But, I’m happy to report that market research is alive and well. In fact, the latest IBISWorld report on the market research industry predicts:
“Over the five years to 2022, revenue for the market research industry will continue to grow as businesses increase marketing budgets amid strengthening economic conditions. The rebounding labor market will lead to a rise in consumer spending, in turn expanding corporate profit. With recovery underway, revenue is forecast to increase at an annualized rate of 1.0 percent to total $21.1 billion over the five years to 2022, as businesses continue spending more on advertising and research and development.”
True innovation
So why the gloomy outlook on the future of market research? I believe it is partly due to how we define innovation in our industry.
Innovation goes beyond tactics. As an industry, we have succumbed to qualifying shiny new technology and trendy methodologies as the epitome of innovation. The result? More than half of the innovative suppliers list in the GRIT report has appeared in the Top 10 in a different order for three years in a row.
While we have been focusing on innovating on technology and methodology as an industry, external industries such as the big five consulting firms and advertising agencies have been innovating from a business structure, consolidating their offerings and giving their clients a one-stop shop that has been slowly taking away dollars from traditional market research agencies. Furthermore, innovation on terms that we deem less innovative such as “data collection” and “quality” have been a focus of innovation for strategic planning firms, further taking away dollars from the traditional market research industry.
Not the only innovation
While technology and methodology innovation are essential for the market research industry, we must also acknowledge that it is not the only innovation to consider. More importantly, it is not the most critical aspect of innovation. We must look beyond the allure of technology and innovate business practices and growth strategies, too. Disruption will be key to remaining competitive because we’re no longer playing on our home court.
So, how does your firm define innovation?