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Q: How many new logo designs are produced each year? ( Answered 3 out of 5 stars,   0 Comments )
Question  
Subject: How many new logo designs are produced each year?
Category: Business and Money > Advertising and Marketing
Asked by: joehumanist-ga
List Price: $150.00
Posted: 15 Nov 2002 14:50 PST
Expires: 15 Dec 2002 14:50 PST
Question ID: 108551
How many new corporate marks and logo designs do the design and
printing industries produce each year?  Specifically, please address
this by industry category, such as:
 - Branding and Identity firms
 - Graphic Design firms
 - Commercial Printers
 - Retail Print Shops 
 - Freelance designers
 - Do-it-yourself designs
 - (others as applicable)

Any additional information you can provide (e.g. average project price
by category, average customer size by category, or top customer
verticals by category) would be very welcome and would willingly be
compensated through a generous tip.

I've already done extensive research trying to locate this
information, including:
 - Printing and graphic arts market research publications 
   such as TrendWatch Graphic Arts 
   http://www.trendwatchgraphicarts.com/ 
 - Industry associations such as the American Institute 
   of Graphic Arts http://www.aiga.org
 - Industry magazines such as Applied Arts 
   http://www.appliedartsmag.com/

I'm not looking for direction about how to find this answer, or for
general market information about graphic designers or the number of
new businesses per year.

Instead, I'm specifically looking for estimates about logo and mark
design activity from verifiable sources.

Thank you very much!
Patrick

Request for Question Clarification by bcguide-ga on 15 Nov 2002 17:03 PST
Hi joehumanist-ga, 

Do you have any criteria for defining "corporate marks and logo
designs?" I ask because you are including free lance and
do-it-yourself designs in this question. Are you looking for doodles
or actual "found their way onto a letterhead or product" designs?

bcguide-ga

Request for Question Clarification by larre-ga on 15 Nov 2002 19:12 PST
In your listed categories, what degree of accuracy constitutes an
acceptable answer? Are you seeking worldwide figures, or U.S. only?

You've ruled out the most respected sources of trends and predictions
in graphic design. You've also stated that directions for locating the
figures, or calculating them are unacceptable. Which sources and what
methods of estimation are acceptable? The better we understand your
requirements, the more likely we'll be able to provide satisfactory
information

=l=.

Clarification of Question by joehumanist-ga on 16 Nov 2002 09:18 PST
Hi bcguide,

Thanks for your request for clarification.  Yep, probably the best
criteria is those that make their way into use.

So, perhaps, the question would better read: "How many new logo
designs are put into use each year?"

I assume that the greatest numbers of marks and logos are created in
the "low-end" of the market through freelancers, DIY, or the "friend
down the street."

Thanks!
Patrick

Clarification of Question by joehumanist-ga on 16 Nov 2002 09:26 PST
Hi larre,

Great questions.

I'm interested primarily in US figures.  Global figures would be
fantastic, but aren't necessary right now.

I certainly don't mean to rule out the sources that I noted.  It's
very possible that I don't have access to these sources' publications
that may contain the information I'm seeking.  I welcome the data from
any reputable source.

In terms of my eliminating "directions for finding the data," I meant
that I'm looking for quantifiable estimates rather than an answer akin
to "check with industry associations and TrendWatch Graphic Arts."

Thanks!
Patrick
Answer  
Subject: Re: How many new logo designs are produced each year?
Answered By: pelican-ga on 23 Nov 2002 20:04 PST
Rated:3 out of 5 stars
 
Hello joehumanist-ga, 

YOUR QUESTION

How many new logo designs are produced each year?

ANSWER

This is the best possible answer based on verifiable sources:

Acording to the latest data (1997 economic census) the total sales
activity for the graphic design services industry (NAICS 541430),
which includes logo design,
was $7,554,903,000 [1].  The 2002 definition of NAICS 541430 (which
has not changed since 1997) is provided below [2].

A complete suite of graphic design services as defined in NAICS 541430
has a price tag ranging from $1000 to $3000, and the average is $2000
[3].  The price tag specifically for logo designs ranges from $100 to
$500, and the average is $300 [4].  Therefore, the percent of total
industry revenue generated by logo designs is 300/2000 = 0.15, or 15%,
and we can estimate total revenue specifically generated by logo
designs to be approximately

$7,554,903,000 x 0.15 = $1,133,235,000

Since the average price of logo design projects is $300/project, it
follows that the number of logo designs done in a year is
approximately

$1,133,235,000 / $300 = 3,770,000 logo design projects.

This is of course an approximate estimate, but is the best that can be
derived from credible, verifiable sources.  It is also an aggregate
estimate.  I was unable to find more granular, verifiable data to
support slicing this aggregate estimate into the industry
subcategories you suggest.

SOURCES

[1] American FactFinder -- Census Bureau, U.S. Department of Commerce
http://factfinder.census.gov/servlet/IQRTable?NAICS=541430&_lang=en

[2] 2002 NAICS Definitions: 541430 Graphic Design Services 
http://landview.census.gov/epcd/naics02/def/ND541430.HTM#N541430

"This industry comprises establishments primarily engaged in planning,
designing, and managing the production of visual communication in
order to convey specific messages or concepts, clarify complex
information, or project visual identities. These services can include
the design of printed materials, packaging, advertising, signage
systems, and corporate identification (logos). This industry also
includes commercial artists engaged exclusively in generating drawings
and illustrations requiring technical accuracy or interpretative
skills."

[3] The minimum pricing for total graphic design services is about
$1000, the maximum is about $3000, so the average is $2000.  The
following sample was used to research pricing:

Embryo Design -- Orlando, Florida
http://www.embryodesign.com/

CornerMark Design -- Stillwater, Minnesota
http://www.cornermark.com/logodesign/

Online Logo Design -- Tampa, Florida
http://www.onlinelogo.com/

Caveman Concepts -- Orlando, Florida
http://www.cavemanconcepts.com

Nathaniel Design -- Winnipeg, Manitoba
http://members.shaw.ca/nathanieldesign/pricing.htm

[4] The minimum pricing for services limited to logo design about
$100, the maximum is about $500, so the average is $300.  The same in
[3] was used to research pricing for logo-only design services.

SEARCH STRATEGY

1. Search the economic data available in the U.S. Department of
Commerce.
2. Search the pricing data of several graphic design service
companies.

RESEARCH SUMMARY

The number of logo design projects is estimated to be 3,770,000 per
year.  This is not a statistically derived estimate, therefore the
bounds on the error of estimation are unknown. It an approximate
estimate, based on verifiable sources.

Let me know if you have any questions, or need further clarification.

Best regards,
pelican-ga

Clarification of Answer by pelican-ga on 23 Nov 2002 20:09 PST
Sorry, reference [4] should read:

[4] The minimum pricing for services limited to logo design is about
$100, and the maximum is about $500, so the average is $300.  The same 
websites listed under [3] were used to research pricing for logo-only 
design services.
joehumanist-ga rated this answer:3 out of 5 stars
Pelican,

Thanks for your efforts at answering my questions.  

This was a valuable answer in that it pointed us to the 1997 Economic
Census which will be a great place to start digging to get a more
nuanced answer to this question.

Beyond the economic census, however, the answer was only of marginal
use.  This is due to the fact that the information that you came up
with related to average graphic design cost and average logo design
cost is based on such a small sample of the very low end of the market
as to render it unreliable.

To further extrapolate, I know from personal experience that it's not
uncommon for mid-market boutique design firms to charge between $8,000
and $50,000 for logo or corporate mark development.  The high-end
corporate identity market includes $2M+ jobs completed by branding and
naming firms.

The group that you sampled (with $300 as an average logo design job
and $2000 as an average graphic design job) is thus decidedly low-end.
 Further, it's impossible to know from your answer what percentage of
the graphic design market comprises this low-end, so it's impossible
to know whether these figures provide a meaningful basis.

In short, I'm going to have to do quite a bit more leg work to get to
the answer I had requested, but the direction you pointed us in was
valuable.

Warmest regards,
Patrick

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