A few years ago, when the internet was in fast growth mode, so too, naturally, were the industries surrounding it.  Website developers, software developers, and even companies like our beloved MessageMedia were being established and growing rapidly.  With traditional business models suddenly as passé as using envelopes and stamps, normally ‘uncool’ industries were riding waves of new-found popularity.  Computer geeks suddenly rewrote the rules and payscales, and, heaven forbid, market research emerged from the land of grey boffins yielding pie charts to become trendy online strategists and the people with all the answers when the future was bright but fuzzy round the edges. 

The combination of supposedly lucrative earning opportunities and a fast-changing environment meant that business were happy to pay someone to plug the information gap.  This gap was duly filled by companies such as Red Sheriff, Nua, Gartner Group, Jupiter and Media Metrics, who suddenly had far greater awareness in New Zealand business than many more established and proven local research companies. 

However, it must be said that much of this awareness was fueled by unsustainable factors. For example, it was not uncommon for these research companies’ financiers, as with many investors and venture capitalists, to place considerable emphasis on awareness-raising and PR activities.  Ridiculous expenditure on brand development, press gimmicks and novelty branding exercises were seen as perfectly viable tools, in a bid to quickly gain clientele and market credibility.  Secondly, the media loved these companies, who could always be relied upon to provide interesting commentary on the topic of the day whenever required.

These factors, as indicated earlier, were clearly unsustainable.  The subject has waned in the media eye, and expenditure is now far more prudent.  Worse yet, the sheer volume of research findings which have now been disseminated for free around the world, plus the vast range of free commentary and opinion available, has meant that the compulsion to pay research companies for much general guidance is now considerably weakened.  After all, would you pay a research company to research “how people view and use television” or “how do people use and listen to radio”?  Of course not (let the TV and radio salespeople do that) – so why do the same for the internet when the questions have already been answered or are already answerable by the application of known factors (for example, people like to vegetate in front of the TV, so concentrated web-surfing sessions will only complement, not replace, couch-potato TV viewing).

What does this mean?  Well, as with all businesses involved with the internet, a return to good old fashioned business principles, albeit (hopefully for all our sakes), in a more enlightened, freed-up and open-minded workplace environment.  And in terms of market research, your internet-related market research should simply be a part of any good business management, answering all the questions market research does so well – what your market wants; what they think; what they do; how they do it; what they’re likely to do next, and so on.  Keep in mind that the basic principles of market research are equally applicable to the internet, and that your online activities should be as researched as carefully as anything else you do, and all should flow smoothly.

Jonathan Dodd