Methodology

Methodology

Forecasting. This is our quantification of market trends with our proprietary weightings of market indicators and drivers as well us underlying vertical market drivers. Our forecasts differ in two ways; first, we state ours as a two percentage range (we’ve never believed or a seen good a forecast given to one decimal place), and second, we try our hardest to block out any industry hearsay from our numbers. We know that too many forecasts are aggregations of chatter which, in our view, defeats the value of a critical, objective and independent evaluation. Forecasts assume constant currency.

Bottom Up. Naturally, we use two approaches for our market sizing. The first is a bottom up approach: adding together all the supply side companies, and divisions of companies that we think operate in a sector.

Top Down. The second approach concerns the buy side. We conduct a series of annual surveys with business information professionals and finance departments of information buying companies. There are two sources of data; (disguised) management accounts of a department, country or headquarters function and interviews with budget holders or operators and/or procurement managers. Spends for that company are collated by information category and triangulated with similar situations to give an estimate for spending by vertical, size of company, country, discipline, etc. The survey has been conducted and refreshed annually since 2007.Where there are gaps or irreconcilable differences we undertake further research. We think the results lead to a holistic and accurate view of expenditure for the industry. 

Company revenues and revenue splits are sourced in the first instance from the public domain, then by using our best estimates, which are then passed by the companies concerned for the opportunity to verify.

We do rely on our network of industry executives and financial advisors both formally (as part of a quantitative survey) and informally to keep us on the right track.

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