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Global Marketing Index (GMI)

Released: May 27, 2016
Global Marketing Activity Grows Steadily in May
  • Global marketing budgets grow for 39th successive month
  • TV budget share continues to fall in Asia-Pacific and The Americas
  • Employment continues to rise in all regions, but at slower rate of growth

The latest Global Marketing Index (GMI) showed that global marketing activity continued to grow at a steady rate in May. The Global GMI registered 55.1, unchanged on the previous month. All regions recorded growth in marketing activity with Europe posting the highest index reading across the world, although both Europe and the Asia-Pacific region recorded values down slightly on their values in April.

For the Americas GMI, in contrast, the index registered a rise in value of 0.4, continuing the recovery in activity from the low point of 51.1 in November of last year. With Latin American economies continuing in recessionary conditions, the uptick reflects the rebound in the US economy recorded in the World Economics Sales Managers Index (SMI) for May.

Global Marketing Budgets grew for the 39th successive month in May. The index remained constant showing steady growth following two successive monthly increases in value. The level of the global Trading Conditions Index also rose in this period, the first increase following five consecutive monthly falls.

The allocation of media spending to Press, Radio and OOH – continued falling in May both globally and on a regional basis. The primary difference was that the rate of decline of OOH in the Asia-Pacific region continued to abate with the index rising for the fourth successive month to just below the 50.0 no change level. The resources allocated to TV continued to fall in all regions with values below 50.0 apart from in Europe where the medium continued to attract increasing advertising spend. Digital and Mobile share both grew rapidly in May rising consistently across all regions.

The Staffing Index, which reflects the number of staff taken on compared to the same period last year, fell slightly in May compared to its value the month before. The level still indicates rising employment in the marketing sector. By region, Europe grew a strong rate with The Americas and Asia-Pacific regions reporting lower levels of growth.




 






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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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