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The Warc Blog
Global marketing budgets fall
LONDON/WASHINGTON: Marketing budgets declined in June as companies in Asia Pacific and Europe trimmed their outgoings in this area, Warc's latest
Global Marketing Index
Based on data from a panel of 1,295 executives, the reading for marketing expenditure hit 47.3 points in June, on a scale where 50 points meant the situation was unchanged, and higher scores reflected growth. (A free, more detailed report can be accessed
The total for June constituted a contraction from 50.3 points in May. It thus matched the lowest level for 2012, posted in January.
Asia Pacific logged the most substantial decrease, off by 3.9 points, to 47.3 points overall. Figures for the Americas slid by 2.9 points to 50 points exactly, and Europe lost 3.0 points, to 44.1 points.
By medium, television delivered its weakest returns since the first GMI data was collected in October 2011, down by 5.4 points to 44.2 points, having previously seen demand remain largely resilient.
Press, on 33 points, radio, on 39.5 points, and outdoor, on 46.4 points, also all shrank month on month, the analysis revealed.
In contrast, digital channels registered 73 points, indicating a significant uptick in interest, and mobile, which is counted separately, received 65.9 points.
While the headline Index – incorporating trading conditions, staffing levels and marketing spend – was positive on 52.4 points, it had fallen from 55.3 points in May and 58.1 points in May.
In the latest round of research, the Americas yielded 53.8 points on this metric, ahead of Asia Pacific on 53.4 points. Sentiment in Europe was neutral on 50 points precisely.
The headline GMI index has not yet slipped into negative territory, with its nadir to date being the 51.1 points recorded in November 2011, when the comparative amount for marketing budgets stood at 43.9 points.
Elsewhere, the barometer covering trading conditions reached 54.1 points for June this year, versus 62.1 points in April. The challenging climate in the eurozone was a major contributor to such a trend.
Warc is still recruiting for the Global Marketing Index panel. Please click
if you would like to join.
Data sourced from Warc, 22 June 2012
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