Lenny Murphy of GreenBook and IIeX discusses the future of market research in terms of business growth, industry growth and changes on the horizon.

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Leonard Murphy, Greenbook
The Future of
Market Research
Leonard Murphy
Greenbook
MR IN 2018
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Leonard Murphy, Greenbook
The Future of
Market Research
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Leonard Murphy, Greenbook
The Future of
Market Research
Marketing
Analysis
Marketing
Planning
Marketing
Implementation
Marketing
Control
Product
Promotion
Place Price
Customer
Value and
Relationship
Role of Research
Inform Customer Value through
development of fundamental
understanding of the customer and
compe77on.
Iden=fy opportuni=es to improve
or expand the marke7ng tac7cs.
Measure the effec=veness of the
implementa7on.
Prescribe correc=ve measures to
improve implementa7on.
Context
Audience
Compe77on
Suppliers
Intermediaries
A BIG PICTURE VIEW OF THE MARKETING CYCLE

4. Follow the Money
Leonard Murphy, Greenbook
The Future of
Market Research
• Buyers are not staffed to do all involved to
generate ac7onable insights; they s7ll need both
opera7onal and strategic resources for much
Service
& Consul=ng
• Bringing down data silos and
op7mizing all data assets across the
enterprise to create more insights
• AI & Automa7on con7nue to set
expecta7ons for massive speed and
cost efficiencies on the process of
data collec7on and results
• Analysis
THREE COMPETING PRIORITIES

5. Follow the Money
Leonard Murphy, Greenbook
The Future of
Market Research
Courtesy of Simon Chadwick, Cambiar Consul7ng
INSIGHT GENERATION LUMASCAPE

6. Follow the Money
Leonard Murphy, Greenbook
The Future of
Market Research
Courtesy of Simon Chadwick, Cambiar Consul7ng
DATA GENERATION LUMASCAPE

7. Follow the Money
Leonard Murphy, Greenbook
The Future of
Market Research
INVESTMENT PRIORITIES FOR MR?
A1 Data collec7on 33.9% (520)
A2
New data types (Ex. Passive
data, visual data)
17.9% (275)
A3 Analy7cs 40.7% (625)
A4 Visualiza7on and Dashboards 46.7% (717)
A5 DIY Solu7ons 23.0% (354)
A6
Data integra7on including
warehousing and meta-analysis
type pla]orms
22.5% (346)
A7 None of the above 22.5% (346)
520
275
625
717
354 346 346
A1: Data collec7on A2: New data types
(Ex. Passive data,
visual data)
A3: Analy7cs A4: Visualiza7on
and Dashboards
A5: DIY Solu7ons A6: Data integra7on
including
warehousing and
meta-analysis type
pla]orms
A7: None of the
above
100
200
300
400
500
600
700
800

8. Follow the Money
Leonard Murphy, Greenbook
The Future of
Market Research
27% 12% 8% 7% 6% 5% 4% 1% 6% 6% 2% 1% 1% 14%
Other quan7ta7ve
research includes mainly
syndicated services for
which breakdowns are
not available.
Other qualita7ve
research includes online
observa7on techniques
and semio7cs for which
breakdowns are not
available.
ESOMAR GMR SPEND BY METHODS

9. Follow the Money
Leonard Murphy, Greenbook
The Future of
Market Research
WHAT IS DRIVING THE PRIORITIES?
A1 Crea7ve repor7ng 3.88%
A2 Provides a focused story 5.9%
A3 Clear linkage to business objec7ves 7.46%
A4
Delivering recommenda7ons that drive the
business
7.44%
A5
Interacts directly with key business
partners to discuss findings
4.79%
A6 Generates measurable ROI 4.92%
A7
Provides content for external marke7ng
communica7on
2.37%
A8
Execu7ves implement ac7on based on
results
6.14%
A9
An engaging survey/interview experience
for par7cipants
4.01%
A10
Connec7on between the topic and the
respondent’s ability to provide perspec7ve
4.75%
A11 Appropriate sampling frame 4.09%
A12 Reputa7on of the agency 2.9%
A13 Flexibility of the agency 4.07%
A14
Collaborates with third par7es to achieve
beeer solu7ons
2.57%
A15 Experience with the agency 4.04%
A16 Agency understands my business 6.24%
A17
Agency brings a point of view to every
study
4.44%
A18
The innova7veness of the research
method to provide differen7ated results
4.36%
A19 Fast results 3.7%
A20 The use of proven methodologies 4.26%
A21 Rigorous analysis 5.14%
A22 Low price 2.54%
3.88
5.9
7.46 7.44
4.79 4.92
2.37
6.14
4.01
4.75
4.09
2.9
4.07
2.57
4.04
6.24
4.44 4.36
3.7
4.26
5.14
2.54
1
2
3
4
5
6
7
8

10. Follow the Money
Leonard Murphy, Greenbook
The Future of
Market Research
Rank Labels In use Under Considera=on Interest
1 Online Communi7es 60% 22% 82%
2 Text Analy7cs 46% 30% 76%
3 Mobile First Surveys 50% 24% 74%
4 Social Media Analy7cs 43% 28% 72%
5 Big Data Analy7cs 38% 32% 70%
6 Mobile Qualita7ve 44% 25% 69%
7 Webcam-Based Interviews 47% 22% 69%
8 Mobile Ethnography 35% 26% 61%
9 Micro-surveys 34% 25% 58%
10 Behavioral Economics Models 29% 29% 58%
11 Eye Tracking 34% 21% 55%
12 Research Gamifica7on 25% 28% 53%
13 Facial analysis 20% 25% 45%
14 Applied Neuroscience 21% 22% 44%
15 Predic7on Markets 19% 24% 43%
16 Internet of Things 12% 27% 40%
17 Virtual Environments/Virtual Reality 11% 27% 38%
18 Crowdsourcing 15% 22% 38%
19 Wearables Based Research 9% 27% 36%
20 Biometric Response 12% 20% 33%
21 Sensor/Usage/Telemetry Data 11% 19% 30%
Base 1533
METHOD ADOPTION SUPPORTS THE PRIORITIES

11. Follow the Money
Leonard Murphy, Greenbook
The Future of
Market Research
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
$4.0
Market Research Analy7cs
2011 2012 2013 2014 2015 2016
Source: Cambiar Capital Funding Index 2011-2016
HISTORICAL CAPITAL FLOW

12. Follow the Money
Leonard Murphy, Greenbook
The Future of
Market Research
$0
$1
$2
$3
$4
$5
$6
2012 2013 2014 2015 2016
Debt A B C D E IPO
Source: Cambiar Capital Funding Index 2011-2016
CURRENT CAPITAL STRUCTURE

13. Follow the Money
Leonard Murphy, Greenbook
The Future of
Market Research
Primary Capital Partners Maru/Matchbox
KKR GfK
HGGC SSI
Court Squared Research Now
Tailwind Capital Lieberman Research WW
EQT Mid Market FocusVision
Bain Capital MacroMill (IPO)
Merged 2017
RECENT LARGE PRIVATE EQUITY TRANSACTIONS

14. Follow the Money
Leonard Murphy, Greenbook
The Future of
Market Research
2.6%
4.7% 4.8% 5.0%
11.5%
18.2%
27.5%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
Adver7sing
Agencies
Research &
Analy7cs
Media Companies Consul7ng Marke7ng
Technology
eCommerce Large Cap Tech
Companies
(FAANG)
Indexes created by England & Company, Data gathered 9/20/17 from Capital IQ
PUBLICLY TRADED COMPANIES — 3 YEAR REVENUE CAGR

15. Follow the Money
Leonard Murphy, Greenbook
The Future of
Market Research
Indexes created by England & Company, Data gathered 9/20/17 from Capital IQ
1.4 1.5 1.9 2.8 3.4 5.2 6.4
0
1
2
3
4
5
6
7
Reasearch &
Analy7cs
Adver7sing
Agencies
Consul7ng Media
Companies
eCommerce Large Cap Tech
Companies
(FAANG)
Marke7ng
Technology
EV/EBIDTA
EV/Revenue
8.5 8.7
12.1
10.1
12.9
18.6
17.2
0
2
4
6
8
10
12
14
16
18
20
Reasearch &
Analy7cs
Adver7sing
Agencies
Consul7ng Media
Companies
eCommerce Large Cap Tech
Companies
(FAANG)
Marke7ng
Technology
EV/EBITDA EV/Revenue
PUBLICLY TRADED COMPANIES — VALUATION MULTIPLE

16. Follow the Money
Leonard Murphy, Greenbook
The Future of
Market Research
96 109 199 200 261 262 313 519
0
100
200
300
400
500
600
Digi7al
Adver7sing
Research
Analysis
Marke7ng
Technology
Consul7ng eCommerce Online and
Digital Media
Tradi7onal
Media
Adver7sing
Agencies
Transac7ons
Number of Deals
$4,066
$1,733
$5,157
$2,599
$13,991
$10,842
$9,486
$3,587
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
Transac7on Value (Millions)
Closed global transac7ons, all ownership amounts, known acquirer — Data gathered from Capital IQ
M&A ACTIVITY FROM 3Q16 – 2Q17

17. Follow the Money
Leonard Murphy, Greenbook
The Future of
Market Research
0.9
1.2
1.3
1.5
1.8
2.5
2.8 2.8
0
0.5
1
1.5
2
2.5
3
Research &
Analy7cs
eCommerce Consul7ng Adver7sing
Agencies
Tradi7onal
Media
Marke7ng
Technology
Online Digital
Media
Digital
Adver7sing
EV/Revenue
Announced Global M&A transac7ons, all ownership amounts — Data gathered from Capital IQ
M&A VALUTATION MULTIPLES FROM 3Q16 – 2Q17

18. Follow the Money
Leonard Murphy, Greenbook
The Future of
Market Research
7.8
9.2 9.3
10.3
11.6
14.5
16.4
36.5
0
5
10
15
20
25
30
35
40
Digital
Adver7sing
Adver7sing
Agencies
Tradi7onal
Media
Consul7ng Research &
Analy7cs
eCommerce Online and
Digital Media
Marke7ng
Technology
EV/EBITDA
Announced Global M&A transac7ons, all ownership amounts — Data gathered from Capital IQ
M&A VALUTATION MULTIPLES FROM 3Q16 – 2Q17

19. Follow the Money
Leonard Murphy, Greenbook
The Future of
Market Research
10 13
34
51
69
142
163
230
0
50
100
150
200
250
Consul7ng Tradi7onal
Media
Adver7sing
Agencies
Digital
Adver7sing
Reearch
Analy7cs
Online and
Digital Media
eCommerce Marke7ng
Technology
Transac7ons
Number of Deals
$220
$511
$202
$640 $851
$5,793
$9,837
$3,078
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
Capital Invested (Millions)
Capital Invested
Announced Global M&A transac7ons, all ownership amounts — Data gathered from Capital IQ
FINANCING ACTIVITY FROM 3Q16 – 2Q17

20. Follow the Money
Leonard Murphy, Greenbook
The Future of
Market Research
> VC capital infusions maturing and declining
> PE interest in mature side of the industry
> Middle market need for capital
> New Tech start-ups looking for funding
> What is the next growth driver?
Courtesy of Simon Chadwick, Cambiar Consul7ng
MACRO IMPLICATION

21. Follow the Money
Leonard Murphy, Greenbook
The Future of
Market Research
> Big Research
– Acquire innova7on
– Consolidate
> Big Analy=cs
– Con7nued organic innova7on
– Consolidate
> Small/Medium Analy=cs
– Top line growth and survival
> Automa=on
– Share growth
– Disrup7on
– Exit planning
> New MR
– Gain niche acceptance
> Small/Medium MR
– Like with like mergers
– Partnerships
Courtesy of Simon Chadwick, Cambiar Consul7ng
BUSINESS MODEL IMPLICATIONS

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Leonard Murphy, Greenbook
The Future of
Market Research
Q & A
Lenny Murphy
Greenbook
Ray Poynter
The Future Place

23. Follow the Money
Leonard Murphy, Greenbook
The Future of
Market Research
NewMR 2018 Sponsors
Pla7num
Gold
Silver
Communica7on
Your name here?
S7ll 7me to be a
2018 NewMR Sponsor