World Economics - Insight , Analysis and Data

World Economics - Insight , Analysis and Data


Global Marketing Index

Released: Desember 18, 2014

Marketing activity slows across all regions except Asia Pacific in December


  • Marketing Budgets expand for two consecutive years
  • Trading conditions in all regions slow
  • Payrolls rise but slowing trend emerging

Overview
The Headline Global Marketing Index (GMI) for December registered a value of 55.1, down by 1.4 on its value in November. Marketers are experiencing strong business activity across the globe, but the rate of increase has slowed. All regions recorded rising marketing activity in December with values for the Headline Index of 56.3 in Europe, 57.0 in the Asia-Pacific area and 53.2 in the Americas respectively.


Trading Conditions by Region
Panellists reported that Trading Conditions were strong in each region, albeit slowing to different degrees. The Index for Trading Conditions in Europe fell by 2.6 in December to register 58.8. In the Asia-Pacific region the index value dropped by 1.4, reporting 59.4 which still represents high levels of trading conditions. In the Americas, Trading Conditions remained solid with an Index of 54.1, but the Index fell sharply by 4.9 from November.


Global Marketing Budgets
The Index for Global Marketing Budgets rose by 0.4 to register a value of 53.8. This is the 24th successive month that the Index has registered above the 50.0 no change level and infers that panellists are continuing to experience rises in the resources devoted to marketing activities.


Marketing Budgets by Region
Marketing Budgets were reported to be growing in all regions in December, but by varying amounts. In Europe, the Index fell by 0.7 to 55.3, in the Americas the Index fell 1.5 to 50.5. In contrast, marketing budget growth in the Asia-Pacific region rebounded by 5.5, from 50.9 in November to 56.4 in December.


Marketing Budgets by Medium
In terms of the marketing budget allocation by medium across the world, all media saw a rise in the rate of expenditure growth in December apart from Press and Digital.

Print fell by 0.3 to record an Index value of 34.3 in December, the second successive monthly fall and well below the 50.0 no change value indicating that the resources allocated to the medium continues to shrink in absolute terms. Digital recorded an Index value of 74.5, down by 0.9, still a rapid growth in resources allocated to the medium. Mobile, another dynamic advertising medium, experienced a rise in the Index of 0.5 to 71.0, the second successive monthly increase.

Panellists recorded that the rate of decline in the amount spent on global TV and Radio budgets slowed in December. The Index value for TV in the month was 49.8, up by 0.2 on the previous month, while the Radio Index rose by 2.9 to reach 45.1.

When analysed by region the pictures were very different. In Europe, expenditure allocated to Radio in December actually increased after declining in November with a sharp rise. The allocation of budgets to TV continued to decline in the Americas with an Index value of 43.6 in December, a fall of 1.2 and the fourth consecutive monthly fall. In the Asia-Pacific region the proportion of money spent on the medium fell with an Index value recorded of 48.9, up by 0.4, but still below the 50.0 no change mark. In contrast, marketers spent more on TV in Europe with an Index value of 56.4, up by 4.0 on November.

The proportion of budgets allocated to Out-of-Home (OOH) also contracted globally with an Index value in December of 46.7, up by 0.3 on November. The medium experienced a contraction in all regions apart from the Asia-Pacific region which saw a weak rise in the money allocated to OOH with an increase of 2.1 to reach 51.1, a reversal of the contraction experienced in November.


Staffing Levels
The Staffing Index reflects the number of staff taken on compared to the same period last year. The global Staffing Levels Index registered a value of 54.6 in December, down by 1.3 on the previous month indicating that marketing departments are still adding staff, but at a slightly slower rate than the previous month. On a regional basis, Europe registered the second successive monthly fall (1.8), Asia-Pacific saw a fall of 0.5 and 1.6 in the Americas.


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

“December’s Headline Global Marketing Index reading indicates marketing activity is rising across all regions with marketing budgets having increased every month for two years without a pause. Mobile and Digital continue to attract a rising share of marketing budgets, but the prospects of the traditional media Radio, TV and OOH have differed from region to region.“






 



















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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.

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

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




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