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Global Marketing Index (GMI)

Released: January 29, 2016
Marketing budgets rise strongly in Europe
  • Marketing activity continues at a solid rate of growth in January
  • Digital and Mobile Budgets continue to rise
  • Staffing levels rise rapidly in Europe

Overview
registered a value of 54.8, down on its value in December. This shows that global marketing activity is still growing at a consistent level to Q4 2015. Growth in marketing activity, although at different rates was recorded across all regions with index values for the Headline GMI of 58.0, 53.2 and 52.9 in Europe, the Asia-Pacific area and the Americas respectively.


Marketing Budgets by Medium
In January, the global survey showed that the allocation of marketing budgets to TV continued to fall with an index value of 49.3. This was the fourteenth consecutive month that the value of the global TV index was under the 50 ‘no-change’ level indicating month-on-month falls in global TV budget share. In Europe, the resources devoted to TV increased with the index recording a value of 56.2, up on the previous month. In the Asia-Pacific region and the Americas spending on TV fell with index values recorded of 46.8 and 42.7.

Globally, other traditional media, OOH, Radio and Press, witnessed falling media budget share with index values recorded of 46.9, 43.0 and 34.2 respectively, all below the 50 level. The allocation of marketing budgets to Press fell most across all regions with Europe, the Asia-Pacific and the Americas all registering index values in the 30s. The index values for OOH and Radio were in the 40s across all regions with the brightest picture shown by OOH in Europe which registered a value of 49.0, a shade below the 50 ‘no-change’ level.

In January, the resources allocated to Digital and Mobile advertising continued to surge ahead with recorded values of 74.4, and 71.5 globally. A similar pattern of rapid growth was recorded across all regions.


Global Marketing Budgets
The Index for Global Marketing Budgets growth in January recorded a value of 52.6, down from its value the previous month. This is the 35th consecutive month that the Index has registered that panellists were experiencing rises in the amount of resources devoted to marketing. Although the average value for 2015 has been slightly below the previous two year trend of 53.3.


Marketing Budgets by Region
Marketing Budgets continued to show strong growth in Europe with an index value recorded of 57.3 in January, while in the Asia-Pacific region the index fell to 50.7, close to the 50 level. In the Americas marketing budgets continued to fall with a level of 48.8 reported.


Staffing Levels
The Staffing Index, which, reflects the number of staff taken on compared to the same period last year registered a value of 55.3 in January, up from the month before. This indicated that employment in marketing departments is still rising globally. On a regional basis, the Staffing Levels Index reached 57.8 in Europe, 53.9 in the Americas and 54.0 in the Asia-Pacific region.


Summary
World Economics Chief Executive Ed Jones commented on the release:

“The Headline Global Marketing Index reading for January indicates that marketing budgets are growing strongly in Europe, weakly in the Asia-Pacific region and are continuing to decline in the Americas. The allocation of budgets to traditional media continues to come under pressure from the growth of spending on Mobile and Digital media.”



 


















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 Amelia Myles,Communications Manager
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Methodology 
The Global Marketing Index results are calculated by taking the percentage of respondents that report that the activity has risen (“Increasing") and adding it to one-half of the percentage that report the activity has not changed (“Unchanged"). Using half of the “Unchanged" percentage effectively measures the bias toward a positive (above 50 points) or negative (below 50 points) index. As an example of calculating a diffusion index, if the response is 40% “Increasing," 40% “Unchanged," and 20% “Reducing," the Diffusion Index would be 60 points (40% + [0.50 x 40%]). A value of 50 indicates "no change" from the previous month.

The more distant the index is from the amount that would indicate "no change" (50 points), the greater the rate of change indicated. Therefore, an index value of 58 indicates a faster rate of increase than an index value of 53, and an index value of 40 indicates a faster rate of decrease than an index value of 45. A value of 100 indicates all respondents are reporting increased activity while 0 indicates that all respondents report decreased activity.

As of March 2015, all index values are based on a three month moving average to mitigate abnormal seasonal variations.



About the Global Marketing Index 
The World Economics Global Marketing Index (GMI) provides a unique monthly indicator of the state of the global marketing industry, by tracking current conditions among marketers.

Our global panel (2,000+ members) consists of experienced executives working for brand owners, media owners, creative and media agencies and other organisations serving the marketing industry. The panel has been carefully selected to reflect trends in the three main global regions: Americas, Asia Pacific and Europe.



About World Economics
World Economics is an organisation dedicated to producing analysis, insight and data relating to questions of importance in understanding the world economy. Its parent company Information Sciences Ltd has a long history of the development of key business information today used throughout the world, including the origination of the Purchasing Managers Indexes in Europe and Asia (now owned by Markit) .

Currently our primary research objective is to encourage and assist the development of better and faster measures of economic activity. In cases where we believe we can contribute directly, as opposed to through highlighting the work of others, we are producing our own measures of economic activity.

Our work is mainly of interest to investors, organisations and individuals in the financial sector and to significant corporations with global operations, as well as governments and academic economists.
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