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Global Marketing Index (GMI)

Released: August 26, 2016
Global Marketing Growth Continues to Slow
  • Marketing budgets growth almost stagnant
  • European TV Budgets continue 5 months slowdown
  • Staffing Index shows continued new employment growth but at a slower rate

The value of the Global Market Headline Index fell in August to 53.2, the third consecutive monthly decline. This fall in the value of the index indicates that global marketing activity is continuing its steady decline which began in March 2015 after the Headline Index registered a value of 57.4. The GMI Indexes fell in both Europe and the Americas in August, but stayed steady in the Asia-Pacific region at 52.6 for a third successive month.

The Global Marketing Budgets Index showed virtually stagnant growth in August with a value just above the 50.0 no change level. Budgets were reduced in the Americas and in the Asia-Pacific regions, while spending grew very slowly in Europe after a sharp fall in the rate of growth seen in June, possibly as a result of the Brexit vote in the UK.

The global Trading Conditions Index fell in August for the third successive month. Trading conditions were unchanged in the Americas and the Asia-Pacific regions while the index value for Europe fell for the second successive month.

The allocation of budgets to traditional media (TV, Press, Radio and OOH) indexes continued to fall globally, all below the 50.0 ‘no change’ level for August. TV budgets grew only in Europe but, even there, the rate of growth of spending in the medium declined in August for the third successive month. OOH fell in the Asia-Pacific region, slowed in Europe with a value of 50.8, close to the stagnation level and fell in the Americas. Once again, Digital and Mobile media continued to see an expansion of resources allocated to them with high index values recorded in August across all regions and in consequence, globally.

The Staffing Index, which reflects the number of staff taken on compared to the same period last year, saw a continuation of the slowing trend exhibited in recent months. This indicates rising employment in the marketing sector globally but at a slower rate. The growth in employment was strongest in Europe and weakest in the Americas.




 






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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.

The July 2016 release uses the un-adjusted data for the commentary to show the impact of the UK referendum on the European and global data. Un-adjusted and moving average indexes are available with a data subscription. 



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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