Marketers downbeat over budgets

22 November 2012

LONDON/WASHINGTON: Marketers around the world remain largely pessimistic over their budget levels, according to Warc's latest Global Marketing Index.

Based on data from a panel of 1,225 executives, the reading for marketers' budgetary expectations came in at 46 points in November, on a scale where totals below 50 points reflect reducing spend, and figures above this level indicate increasing spend.

This marked a decline from 48.8 points in October, and constituted the lowest such score since November 2011, when ratings hit 43.9 points.

Upon discussing the regional picture, the study showed that respondents from the Americas also delivered the worst prognosis in 13 months, on a neutral 50 points (= no change).

The comparable reading for Asia Pacific was 46.8 points, versus 51 points in October. In Europe, these values were 42.6 points and 44.1 points respectively.

Suzy Young, Warc's data editor, said: "Following President Obama's re-election, attention has once again focused on the global economic situation.

"It is a tricky time for marketers worldwide, and many have chosen to adopt a 'wait and see' approach when it comes to budget setting in the short term."

Despite this, digital channels, excluding mobile, continue to attract greater investment, registering 70.1 points in November. Mobile itself generated 65.5 points.

By contrast, press received 33.6 points, while radio posted 41.1 points, out of home logged 42.5 points and television secured 45 points, reflecting the more challenging climate for traditional media.

Elsewhere, the index for trading conditions came in at 53.4 points, thanks to a robust performance across the board. An equivalent measure for staffing levels was also broadly favourable, on 51.1 points.

As such, the headline GMI, which combines all of these areas, achieved a value of 50.1 points, off from 52.3 points in October, primarily due to the deepening pessimism observed in Europe.

Warc is still recruiting for the Global Marketing Index panel. Please click here if you would like to join.

Data sourced from Warc