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Global Marketing Index (GMI)

Released: July 28, 2016
European Marketing Budgets Tumble After Brexit Vote

The Global Marketing Budgets Index turned negative in July as marketing budgets declined in the Americas and in the Asia-Pacific regions. Spending grew marginally in Europe, but the index fell dramatically from its June level reflecting the uncertainty caused by the Brexit vote.

In July, traditional media (TV, Press, Radio and OOH) indexes continued to fall globally, registering values below the 50.0 ‘no change’ level. After several months of expansion, the growth in the resources devoted to TV budgets in Europe fell sharply after the Brexit vote in the UK. TV budgets also continued to decline in the Americas and the Asia-Pacific regions. OOH fell in the Americas, rose slightly in Europe and remained unchanged in the Asia-Pacific region on the previous month. The resources allocated to Digital and Mobile media continued to increase strongly in July, globally and across all regions.

The level of the global Trading Conditions Index tumbled in July with trading conditions remaining the same in the Americas, rising in the Asia-Pacific region but the level of the index falling significantly in Europe.

Overall the Global Marketing Index (GMI) for July suggests that global marketing activity continues to grow but at a sharply reduced rate in all regions. This was the second successive monthly fall. The European index’s declining trend across the continent was sharpened by the Brexit vote in the UK referendum. GMI values for the Asia-Pacific and Americas regions both registered declines in July but not by the same magnitude reported in Europe.

The Staffing Index, which reflects the number of staff taken on compared to the same period last year, eased slightly in July. This still indicates rising employment in the marketing sector but the global index has fallen for three consecutive months. The growth in employment was weakest in the Americas reflecting the economic problems in South America.




 






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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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