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Global Marketing Index (GMI)

Released: September 29, 2016
Global Marketing Budgets Fall For the
First Time in Over 3 Years

  • Marketing budgets decline in The Americas and Asia Pacific regions but rise in Europe
  • TV Budgets continue to fall in all regions
  • Allocation of adspend share continues to increase for Digital and Mobile

The value of the Global Market Headline Index fell in September to 52.4, the fourth consecutive monthly decline in the level of the index. The GMI regional indexes slowed across all regions and in the Americas reached 50.5, just above the 50.0 ‘no change level’.

The Global Marketing Budgets Index in September recorded a value of 49.2, below the 50.0 no change level, indicating the first fall after nearly four years of growth. Budgets were reduced in all regions apart from Europe where with an index of 51.0 (representing insipid growth) was recorded although the index fell in value for the six consecutive month. Global Marketing budget cuts are almost certainly a reaction to the challenging marketing conditions. These are illustrated by the Global Trading Conditions Index which fell in September for the fourth consecutive month and in value across all regions.

The global Trading Conditions Index Traditional media (TV, Press, Radio and OOH) all saw continuing falls in the value of budgets allocated to them. In September, the global indexes for these media recorded values below the 50.0 ‘no change’ level. Europe was the only region showing growth in the money allocated to TV with a low figure of 51.9, slowing for the fourth successive month. Money spent on OOH fell in all regions as did Radio and Press. The only growth in spending seen in September was across Digital and Mobile media in all regions.

The Staffing Index, which reflects the number of staff taken on compared to the same period last year, saw growth globally with an index value of 55.1 recorded in September, although this was the fifth consecutive monthly fall in the value of the index. Employment in the global marketing sector is continuing to rise but the growth rate is faltering. Only the Asia-Pacific region saw an increase in the value of the Staffing Index.


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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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