As we close out an interesting 2024, it’s a good opportunity to revisit themes outlined for the insights space at the beginning of the year and see how we progressed.
Those themes as detailed in a MarketVision blog from early February were: Optimism; Data Quality; Engagement & Participation; AI & Synthetic Data; and, Project Delays.
- Optimism. A better description for the year 2024 would be the acronym VUCA – volatile, uncertain, complex, and ambiguous. Agencies and client groups certainly were optimistic, and especially compared with the start of 2023. But, that optimism faded among many. It seems there has never been as stark a difference in agency performance and client spending. Literally all over map. A quick survey of mid-sized quality insight agencies reveals some firms up 10%+ and others down 10%+.
- Data Quality. This theme and its intensity in 2024 are dead-on. Data quality continues to be a major issue for everyone. Confidence levels in final data is significantly challenged. The emergence of AI does not help, and there is understood suspicion of whether survey data is really the product of real people. One insights leader reported replacing a quant tracker with in-person IDIs because they “just didn’t trust the data” which says a lot. Clients are not sitting still and finding ways to act, most recently with one of the largest CPG companies mandating all quant suppliers earn ISO certification.
- Engagement & Participation. Another theme that is on target in 2024 and is perhaps the most underrated of themes. Excitement and interest in participating in research has noticeably declined. This has been coupled with a loss in many talented owner-operator recruiting firms around the U.S. over the past five years. They are missed in the marketplace. This theme can be managed and clients should not have to suffer. More active field management, multiple follow-ups with respondents, and shorter screeners can also help. Also, introducing a human connection, such as via phone follow-up, can significantly support a digital exercise.
- AI & Synthetic Data. This is clearly an exciting area but many clients indicate being overwhelmed by it all. Many agencies are trying to “out-AI” one another by focusing too much on their own investments and capabilities. There is no question that AI tools can add value to research programs, and there are proven tools today that lead to productivity improvements. But, the big opportunity is still out there, and issues of privacy, security, and accuracy are still being investigated. Tools are still lacking in ability to capture nuance and emotional elements. The interest in synthetic data has taken a back seat to the larger issue of data quality, and exploration has been relegated to low-risk work.
- Project Delays. Many agencies report the average insights project taking longer despite utilization of automation tools enabling speed and clients’ businesses moving faster. This disturbing trend relates to gaining alignment with clients and business partners who seem less connected. Lisa Courtade of Organon and Lee Carter of Maslansky + Partners gave an excellent presentation on this challenge at the CRC Conference in New York this fall, with some learnings for both agencies and clients. Communication is key, and agencies can play a more active role in supporting clients here.
So, 2024 followed many of the forecasted themes though not always in the same ways. We would love to get your views on these and other themes. Please reach out at tmcmullen@mv-research.com.
About the Author:
Tyler McMullen
President and CEO - MarketVision Research.