Are free reports worthless?
There's an old saying that you get what you pay for. If that bit of folksy wisdom is to be applied to market intelligence, it would seem to suggest that there's little marketers can hope to gain from the array of free reports out there. But as it turns out, there's no real consensus on free reports.
"I have found that some of our more costly subscriptions are ones we can live without," says Kim Kline, VP of account management and planning at Evolution Bureau. "What marketers used to pay for was the analysis of consumer behavior. What's interesting about the last five years is that analysis comes from so many places, including consumers themselves. It's available 24/7 online, and it's free."
But JP Clement, co-founder and EVP of Karma Media Labs, says he always worries about free information because it usually comes with an unhealthy bias.
"We are very wary of research papers by organizations and companies that have a vested interest (usually for sales purposes) in the data they are reporting," Clement says. "We are more cautious about using these papers' data and always look for biases, incorrect or dubious research methodologies, and we are overall more critical of their findings."
And then there are the instances where free might actually outperform paid research, or cover areas outside the realm of subscription reports.
"There is a vast quantity of very useful, freely available research available on the internet," says Will Akerlof of Liquid Advertising. "One small example is that while we pay a lot of money for third-party website audience data, free sites like Quantcast and Alexa provide very useful data, especially on smaller sites not covered by paid research. Conversely, often we find that reports costing thousands of dollars reveal little in terms of actual knowledge not previously disseminated for free."
But if there's disagreement on the value of free reports, it's not just among information consumers. Even Forrester, which charges for its highly respected reports, offers a divergence of opinion here.
"It's not by definition that something that is free is useless, and especially in the current social era there are lots of information sources that can be very helpful in understanding the trends in the market," says Forrester's Reitsma.
But while Reitsma advises that free reports be used cautiously, her colleague at Forrester, Carl Doty, isn't so keen to use anything that's free.
"Most free market intelligence reports that I see don't go deep enough to be truly valuable," he says.
And then there's Majewski at eMarketer. While eMarketer also charges for its highly prized reports, Majewski says there's a wealth of good data out there that marketers can get their hands on for free. But, she points out, there's a key advantage to paying for expertise because, "culling through all of the data out there can be labor intensive and confusing."
Methodology matters
Believe it or not, it's not hard to spot a bad market research report, and you can actually do it rather quickly, says Glenn Lalich, VP of research and analytics for PM Digital.
"Make a beeline for the methodology," Lalich says. "It should be provided, and it should be clear. The fuzzier the details, the less likely we are to use it. If the methodology is relatively clear, then make sure you're reasonably satisfied with date range, data source, panel size -- whatever would significantly impact the findings."
Are your reports old?
Whatever the shelf life was of market intelligence reports before digital, it's fair to say that today things move a lot faster. But that doesn't always mean that an old report is useless. In fact, says Guy Schueller, group director of media at Organic, reports can remain sound for several years.
"As long as what is being measured is consistent across time, data from the last three to four years is still very relevant," Schueller says.
But Kline at Evolution Bureau isn't so sure older reports are reliable given the accelerated pace with which technology and consumers move these days.
"I don't think marketers should hold on to anything for too long," Kline says. "Much like the consumers we serve, we should be 'snacking' on small bites of market data on a daily basis."
But according to Majewski at eMarketer, there's no hard-and-fast rule for declaring a report stale, and having a long-term view is often critical.
"Newer data on the internet can be forward-looking," Majewski says. "In order to fully comprehend trends, you need a host of years. Historical data can often give a marketer a solid base to figure out trends. You always want the most recent data to make solid decisions in the present, but shedding light on where we've been can often help us figure out where we're going."
Use your gut and your head
If you're a decision-maker for a brand -- whether you're the CMO or a brand manager -- there's a reason why you've got the job, and chances are it isn't because you always know which reports to read, trust, and execute on.
According to Melinda Partin, CEO of Worktank, good marketers always know when to say when. That is, for all the insights that can be gleaned from market intelligence, there's also a real value placed on old-fashioned intuition.
"Market intelligence is a tool for gaining insights, but don't become paralyzed by the amount of data to the point that the campaign becomes watered down and ineffective," Partin explains. "Look at the data, but also pay attention to what is going on in the physical world. Good marketers can intuit what the customer wants. Combining logic and data with intuition, strategy, and perception will drive powerful, effective campaigns."
For Majewski at eMarketer, it really all boils down to common sense.
"Don't ignore common sense," Majewski says. "Data can be overwhelming, and people can get lost while trying to make sense of it all. Marketers should remain cognizant of their strategy and use data that fits."
Michael Estrin is a freelance writer.
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