Market Analysis – 80141506 – Internet based market research

Market Analysis: Internet Based Market Research (UNSPSC 80141506)

Executive Summary

The global Internet Based Market Research market is valued at est. $46.8 billion in 2024 and is projected to grow at a robust 3-year CAGR of est. 14.1%. This growth is fueled by the enterprise-wide demand for real-time, data-driven consumer insights. The single biggest opportunity for procurement is leveraging the shift towards AI-powered analytics platforms, which can significantly reduce project timelines and manual analysis costs. However, navigating an increasingly stringent data privacy landscape remains a key challenge that requires careful supplier vetting and contractual diligence.

Market Size & Growth

The global market for internet-based market research is experiencing significant expansion, driven by the digitalization of commerce and the increasing need for agile business intelligence. The Total Addressable Market (TAM) is projected to grow from $46.8 billion in 2024 to over $80 billion by 2028. The three largest geographic markets are 1. North America, 2. Europe, and 3. Asia-Pacific, with APAC showing the highest growth potential.

[Source - Grand View Research, MarketsandMarkets, internal estimates, 2023-2024]

Key Drivers & Constraints

1. Demand Driver: Digital Transformation. The proliferation of e-commerce, social media, and digital content consumption generates vast quantities of behavioral data, creating a critical need for services that can capture and interpret these signals.
2. Demand Driver: Need for Speed & Agility. Businesses are shifting from slow, traditional research cycles to "always-on" insights platforms to inform rapid product development, campaign optimization, and competitive response.
3. Cost Driver: Talent Scarcity. The demand for skilled data scientists, AI/ML specialists, and quantitative researchers outstrips supply, driving up labor costs, which are a primary component of project-based pricing.
4. Constraint: Data Privacy Regulation. Regulations like GDPR (Europe) and CCPA (California) impose strict rules on data collection, consent, and usage. This increases compliance costs and risks, and limits the scope of some research methodologies.
5. Constraint: Data Quality & Veracity. The sheer volume of online data introduces challenges in filtering out fraudulent responses, bots, and "noise" to ensure the integrity and reliability of research findings.

Competitive Landscape

The market is a mix of established full-service giants and disruptive technology-led platforms. Barriers to entry are moderate; while software development is accessible, building trusted, high-quality consumer panels and proprietary datasets requires significant time and capital.

⮕ Tier 1 Leaders * NielsenIQ (Advent International): Dominant in retail measurement and large-scale consumer panels, offering unparalleled data depth. * Kantar: Global leader in brand equity, advertising effectiveness, and strategic consumer insights, with strong consulting capabilities. * Ipsos: Specialist in survey-based research, excelling in public opinion, brand health tracking, and advertising research.

⮕ Emerging/Niche Players * Qualtrics: Leader in Experience Management (XM) SaaS, enabling organizations to capture and analyze customer and employee feedback at scale. * Momentive (SurveyMonkey): Strong in the self-serve survey market, expanding into agile enterprise insights and market feedback solutions. * YouGov: Differentiates with a highly-engaged, proprietary online panel and strong public opinion and political polling data. * Suzy: Offers a real-time "always-on" consumer insights platform, targeting CPG and retail clients needing rapid-turnaround feedback.

Pricing Mechanics

Pricing models are bifurcated. The legacy model is project-based, with fees determined by scope, methodology, target audience difficulty, and required analytical depth. The growing model is subscription-based (SaaS), where clients pay recurring license fees for access to a platform (e.g., Qualtrics, Momentive), often tiered by user count, features, and number of survey responses.

The primary cost components in a project-based price build-up are (1) Data Acquisition/Respondent Incentives (25-40%), (2) Labor/Analytics (35-50%), and (3) Technology/Overhead/Margin (15-25%). Subscription models shift this burden to the supplier's COGS, but the value is still derived from these core elements.

The three most volatile cost elements are: 1. Specialized Labor (Data Scientists): High demand has driven salary costs up by an est. +10-15% annually. 2. Respondent Incentives: Competition for quality panelists and inflation have increased incentive costs by an est. +15-20% over the last 24 months. 3. Third-Party Data Access: API access fees for social media and other datasets are highly volatile, with some costs increasing by >25% following policy changes by platform owners.

Recent Trends & Innovation

• Generative AI Integration (Q2 2023 - Present): Suppliers are embedding generative AI to automate the synthesis of qualitative data (e.g., open-end survey responses, interview transcripts) and generate instant executive summaries, drastically reducing analysis time.
• Major Market Consolidation (July 2023): The merger of NielsenIQ and GfK created a global giant with $15B+ in combined revenue, signaling a strategic push to provide end-to-end views of consumer purchasing and media behavior.
• Rise of "Humanized" Insights (2023-2024): A growing emphasis on integrating qualitative video feedback at scale. AI-powered platforms now analyze facial expressions, tone, and spoken keywords from video surveys to add emotional context to quantitative findings.

Supplier Landscape

Regional Focus: North Carolina (USA)

Demand in North Carolina is strong and growing, fueled by a high concentration of target industries including Financial Services (Charlotte), Technology and Life Sciences (Research Triangle Park), and CPG/Retail. These sectors have a high propensity to spend on competitive intelligence and consumer behavior research. Local capacity is robust, with all Tier 1 suppliers maintaining a presence. The state also benefits from a deep talent pool of data analysts and researchers graduating from Duke University, UNC-Chapel Hill, and NC State University, which supports both established suppliers and a healthy ecosystem of specialized boutique firms. The state's favorable business climate and lack of onerous data regulations beyond federal law make it an attractive and cost-effective location for service delivery.

Risk Outlook

Actionable Sourcing Recommendations

1. Implement a "Core & Flex" Sourcing Model. Consolidate ~70% of spend with a primary SaaS platform (e.g., Qualtrics) for standardized, self-serve research to gain cost and data governance efficiencies. Supplement this with a pre-qualified roster of 2-3 Tier 1 suppliers for complex, strategic projects, driving competition for high-value work and ensuring access to specialized expertise.

2. Mandate AI-Powered Synthesis in New RFPs. To mitigate the High risk of technology obsolescence and reduce internal workload, require suppliers to demonstrate native AI/ML capabilities for summarizing qualitative data and identifying key themes. This can reduce project analysis time by an est. 20-40%, freeing up internal resources to focus on strategic application of insights.