Analyst Value Increases By 10% Despite Global Challenges

By: Ian Scott

Seeing Analysts As High-Value Influencers Was A New Norm In 2020

Following the release of the Analyst Value Survey, the Analyst Observatory (the team behind the project) has been crunching the numbers from the 2020 edition. This one-of-a-kind survey is the only annual survey of analyst users, looking at both premium and unpaid use. It is uniquely suited to evaluate the true demand for analysts, their perception in the community, and their market direction.

The results show that analyst value has increased by an incredible 10% in 2020, a significant increase compared to 2019’s results and made all the more impressive by the global catastrophes that caused the markets to behave so erratically.

But how are researchers able to quantify the value of an entire industry? The survey asks participants to rank analyst value from very low to very high when looking at analyst firms they use across eight different services. These services include research/data, events, inquiry calls, reprint rights, advisory/strategy days, peer communities, business leads, and purchasing recommendations.

2020 was the first year in which the overall average was high and the gross percentage of responses in the high and very high ranges jumped from 392% (in 2019) to 429% in 2020, amounting to a growth of 9.54%. For reference, the maximum across the eight service types would be 800%.

It will be interesting to see what 2021’s results reveal. We expect more exciting transformative AR changes—after all, an increase in analysts’ values automatically raises the stakes for AR.

Learn more about how we create the Analyst Value Survey by discovering the methodology. To purchase a report, please contact info@sagecircle.com.

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