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Global Marketing Index

Released: February 27, 2015

Global Marketing activity continues strong growth trend in February


  • Global Trading Conditions improve further
  • Mobile Marketing Budget Growth rate accelerates for fourth successive month
  • Marketing departments adding more to payrolls

Overview
The Headline Global Marketing Index (GMI) for February registered a value of 58.1, up by 0.4 on its value in January. This is the second successive month that the Index has increased indicating marketers are continuing to experience strong business activity across the world. Buoyant marketing activity was recorded in each region with values for the Headline Index of 55.8 in Europe, 59.6 in the Asia-Pacific area and 59.1 in the Americas respectively. In Europe, however, the Index indicates a slowdown in the month-on-month rate of growth for marketing activity with a fall of 2.3 in the Index value.


Trading Conditions by Region
Panellists reported that Trading Conditions were strong in each region, although with different growth trends. The Index for Trading Conditions in Europe fell by 1.2 in February to reach 56.7, the third successive monthly decrease. In the Americas, Trading Conditions were reported to be strong with an Index value of 58.2, also down by 1.2 while in the Asia-Pacific region the value of the Index increased by 2.1 to register a value of 64.7, the second consecutive monthly increase in the value of the Index in that region.


Global Marketing Budgets
The Index for Global Marketing Budgets growth slowed in February falling by 0.9 to register a value of 54.7. This is the 26th consecutive month that the Index has registered that panellists were experiencing rises in the amount of resources devoted to marketing.


Marketing Budgets by Region
The monthly changes in Marketing Budgets exhibited growth for all regions. In the Americas growth accelerated by 3.3 to produce an index value of 56.4 in February, the second monthly rise after it had reached 50.5 in December, close to the 50.0 no change value. In the Asia-Pacific region the Index also rose although slightly by 0.6 to reach a value of 56.9 indicating strong growth. In Europe, the recorded Index of Marketing Budgets fell by 5.8 to reach a value of 52.4.


Marketing Budgets by Medium
The global survey showed that in February the marketing budget allocation by medium across the world, saw a reduction in expenditure in all categories apart from Digital, Mobile and TV.

The index for expenditure on Mobile rose by 0.5 to reach 73.0 in February, the third successive month that the value of the Index has risen. This indicates a very high growth rate in the resources allocated to the medium. The growth rate of Digital was also very high in February with an Index value of 75.5, although down by 1.3 on the previous month. Digital and Mobile exhibited very high growth across all global regions.

Panellists recorded that the absolute amount spent on TV budgets across the world rose slightly in February recording an Index of 50.6, up by 1.5 on the previous month after four months of falling budgets. In Europe, the value of the TV Index for February was up by 0.5 to reach 56.4, but in all other regions panellists recorded that the resources allocated to TV continued to fall with index values below the 50.0 no change level. The index for TV budgets indicated a contraction in resources in the Americas with an Index value of 46.7 in February, up by 3.4 on the previous month. In the Asia-Pacific region the Index value recorded in February was 48.0 effectively unchanged on January.

Print continued its global contraction as an advertising medium with an Index value recorded in February of 33.2, up by 1.4 on January. This pattern of declining expenditure allocated to the printed medium was replicated in all regions.

The Index values for Radio and Out-of-Home (OOH) also indicated continued contraction in the proportion of budgets allocated to these media with global index values of 40.8 in February, down by 2.8, and 46.9, down by 1.2 respectively. This pattern of declining growth in Radio and in the OOH was replicated across all regions.


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 59.4 in February, up by 1.2 on the previous month indicating that marketing departments are still adding staff. On a regional basis, the Staffing Levels Index was virtually unchanged in Europe at 58.3, but fell by 0.6 on its January value. In contrast, the Index recorded in the Americas was up by 3.3 to reach 62.7.


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

“The Headline Global Marketing Index reading for February indicates that marketers are seeing strong business activity and showing solid growth in all regions with a notable acceleration reported in the Americas. The only media increasing their share of advertising budgets in all regions were Digital and Mobile, although on a global basis, TV expenditure rose slightly, but only as a result of a rise in the resources allocated to the medium in Europe. Marketing departments around the world are still taking on more new staff to meet growing business demands.”

 



















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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.



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) .

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
99 days ago
It is as usual but if u think another angel it will not all over correct.

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




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