Marketing budgets in recent years have been glooming due to the effects of pandemics, high inflation or supply chain disruptions. However, the spending on market research shows a completely different picture with growth recorded.
COVID-19 is the barrier but also the momentum
While overall budget growth may have slowed, the market research budget performed well. Companies are attempting to better understand the impact of the COVID-19 pandemic on their existing clients and target audiences.
According to Institute of Practitioners in Advertising, a media company in the UK, the number of businesses increasing investment in market research has increased rapidly, from a net balance of 0.7% in Q3/2021 to 7% in Q4/2021. It is the strongest increase recorded by the company over the past decade or so. Previously, in Q2/2020, the pandemic made many businesses tighten their spending, including market research budget.
After the pandemic was controlled, the situation has completely changed. Businesses of all industries realize they must understand their customers better than ever before. Consumers are changing much and fast. If businesses do not understand and respond to them in time, they will soon lose their position in the market. That’s why many businesses decided to increase their market research budget.
What businesses got with a market research budget boost
Market research will provide businesses the data they need to make optimal decisions, increase profits, attract potential customers, satisfy existing customers, and make effective marketing strategies, etc.
With a higher budget, they can get bespoke studies, customized to their needs and purposes. As a result, the decisions made will be more accurate.
In the tourism industry, a year after the “aftershocks” of COVID-19, it has not yet recovered. In the re-emergence of the epidemic, and the economic difficulties, tourists will change in behavior, psychology, preferences and trends again. It will be a big problem for many businesses and destinations if they cannot track and understand travelers. To get data, businesses can look to market research companies. With their advice and direction, businesses will have enough data for decision making and operation planning.