World Economics - Insight , Analysis and Data

World Economics - Insight , Analysis and Data


Global Marketing Index

Released: October 28, 2014

Global marketing expenditure continues to grow strongly in October


  • Global marketing budgets continue to rise
  • Digital and Mobile spending shares increase
  • TV stagnant while Press falls

Overview
The Headline Global Marketing Index (GMI) for October registered a value of 56.3, virtually unchanged from 56.4 in September. This indicates continuing strong growth in activity. This pattern was replicated across the world with recorded values for the Headline Index of 57.2 in Europe, 56.4 in the Asia-Pacific area and 55.9 in the Americas respectively.


Trading Conditions by Region
Trading conditions across all regions continued to be robust with each area showing strong growth. The Index for Trading Conditions in Europe fell by 5.3 while the Index value for panellists reporting an improvement in conditions rose by 3.2 in the Asia-Pacific region and by 1.0 in the Americas. The resultant regional dispersal around the global average with an Index value of 59.2 consequently was insignificant.


Global Marketing Budgets
Marketing panellists indicated a rise in the rate of growth in Global Marketing Budgets with the Index for October registering a value of 54.0, up by 0.7 on the previous month. This is the second monthly increase in the value of the Index and the 22nd consecutive month it has recorded a value over 50 signifying growth.


Marketing Budgets by Region
European marketing budgets are still rising, but at a declining rate of growth with an October Index value registering 54.9 down by 3.8 on the previous month. The monthly changes in the value of the European Index have been volatile since it grew to a peak value of 58.7 in December of last year.

Overall growth rates are converging across the world. Panellists in the Asia-Pacific region reported generally rising marketing budgets with an Index value for October of 55.2, up by 3.4 and the second successive monthly increase. There was also a rise of 2.2 for the Americas Marketing Budgets index in October to register a value of 53.5.


Marketing Budgets by Medium
In terms of marketing budget allocation by medium across the world, the proportion of media spend allocated to Digital and Mobile continued to rise with both media recording Index values of 76.4 and 68.2 respectively in October. Both media continued to attract media budgets across all regions.

TV budgets have been broadly stable over the last six months with an average global Index value of 50.6 over the period close to the 50.0 no change level. In October, TV recorded a value of only 48.8 globally, down by 3.0 indicating a contraction of expenditure allocated. The index for the medium was also below 50.0 in the Americas (45.0) and in the Asia-Pacific region (48.2). In Europe, the value of the Index for TV for October was higher at 54.4, but this was still down by 4.8 on the previous month.

The global value of the index for print media in October at 36.6 indicating a continued decline in expenditure on Press. The medium has been below the 50.0 level globally, indicating contraction since the index has been compiled and has averaged 34.2 over this period (since November 2011). An index above 50 indicates growth, while an index below 50 indicates contraction. Radio and Out-of-Home (OOH) also continued to contract with global index values of 43.0 and 48.5 respectively. There was only growth in the OOH medium in the Asia-Pacific region with an Index of 53.9.


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 55.6 indicating that marketing departments are still increasing their payrolls. On a regional basis, the Staffing Levels Index was virtually unchanged in Europe, whereas it fell by 1.1 in the Asia-Pacific region and by 3.7 in the Americas.


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

“The Headline Global Marketing Index reading for October shows strong growth across the world. On a regional level growth rates are converging. Digital and Mobile media continue to raise their share of marketing budgets, while, TV is stagnant while expenditure on Press continues to fall.”






 









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Amelia Myles,Communications Manager
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F: +44 (0) 20 7326 8351 
E: Amelia.Myles@worldeconomics.com



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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