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Global Marketing Index

Released: January 22, 2015

Global marketing activity buoyant and rising in January


  • Marketing budgets rise for 25th month
  • Trading conditions strong and improving
  • Rapid growth in Digital and Mobile

Overview
The Headline Global Marketing Index (GMI) for January registered a value of 57.7, up by 2.6 on its value the previous month. This indicates that panellists throughout the world are experiencing strong and rising business activity. This pattern was seen in each constituent region. The Headline Index reached 58.1 in Europe, up by 1.6 on December, 58.5 in the Asia-Pacific up by 1.5 and 57.3 in the Americas, up by 4.1.


Trading Conditions by Region
Panellists reported that Trading Conditions were strong and were improving in each region apart from Europe where the Index fell by 0.9 to a still high level of 57.9. In the Americas, the Index rose in January by 5.3 to reach a value of 59.4 while in the Asia-Pacific region the value of the Index increased by 2.0 to register a value of 61.4. These high Index values in each region signify that trading conditions are favourable and improving month-on-month.


Global Marketing Budgets
The Index for Global Marketing Budgets rose by 1.8 to register a value of 55.6 in January. This represents solid growth in the resources devoted by companies across the world to marketing activities. It is also the 25th consecutive month that the Index has registered that panellists were experiencing rising budgets.


Marketing Budgets by Region
The monthly changes in Marketing Budgets for all regions exhibited growth although at different rates in January. In Europe, the recorded Index of Marketing Budgets rose by 2.9 to reach a high level of 58.2. Similarly, in the Americas the Index increased by 2.6 to record a value of 53.1 showing a recovery after being close to the no change level with a value of 50.5 in December. In the Asia-Pacific region, the Index was effectively unchanged showing continuing growth with a value of 56.3, down marginally by 0.1 on the previous month.


Marketing Budgets by Medium
All media platforms experienced a fall in their budget allocations apart from Digital and Mobile with Index values recorded in January of 76.8, up by 2.3 and 72.5, up by 1.5 respectively. This indicates that these media continue to increase their share of budgets while growing at a very rapid rate.

Panellists recorded that the absolute amount spent on TV budgets across the world in January fell, effectively at the same rate as the previous month, registering an Index value of 49.1, down slightly by 0.7 on the value in December. The strongest contraction in TV budgets occurred in the Americas with an Index value of 43.3 while the Asia-Pacific region saw a less marked fall with an Index value of 48.1. In sharp contrast, TV budgets in Europe expanded strongly with an Index value of 55.0, down by 0.5 on the month before. This is the 16th consecutive month that TV in Europe has being growing as a medium.

Print continued its global contraction as an advertising medium with an Index value recorded in January of 34.9, up slightly by 0.6 on December, but well below the 50.0 no change figure. The share of resources spent on press fell across all regions, but Europe registered the lowest value at 31.8 in January, down by 0.6 on the previous month.

Radio and Out-of-Home (OOH) both faced declining media spend across the world with global index values of 43.6, down by 1.5, and 48.1, up by 1.4. The most notable change in the fortunes of radio occurred in Europe when an Index value of 45.5 was recorded in January, showing a contraction, after a slight improvement in December.


Staffing Levels
The Staffing Index reflects the number of staff taken on compared to the same period last year.

The Staffing Level index registered a value of 58.2 in January, up by 3.6 on the previous month indicating that payrolls are rising at an increasing rate. The rise in the rate of increase in employment occurred across all regions lead by The Americas and Asia Pacific.


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

“The Headline Global Marketing Index reading for January indicates buoyant marketing activity in all regions. The proportion of marketing budgets allocated to Digital and Mobile continues to rise along with payrolls.”






 



















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E: Amelia.Myles@worldeconomics.com



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.



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 (1,000+ 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), and the development of WARC a global information provider for major corporations .

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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There are 2 comments on this paper.
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2014 world mkt condition
64 days ago
It is as usual but if u think another angel it will not all over correct.

2014 world mkt condition
64 days ago
It is as usual but if u think another angel it will not all over correct.




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