LONDON: Global marketing activity is expanding at a solid pace in all regions while the combined spend for digital and mobile is expected to take the largest share of budgets by 2016, the latest Global Marketing Index (GMI) has revealed.
The headline GMI registered a value of 55.2 in July – where a reading of 50 indicates no change and 60+ suggests rapid growth. With a GMI value of 56.2 points, Europe outpaced Asia Pacific and the Americas, which both scored 54.8 points.
Compiled by World Economics, the GMI provides a unique monthly indicator of the state of the global marketing industry because it tracks current conditions for marketers as well as their expectations for budgets and staffing levels.
A significant finding in the July survey was that the share of marketing budgets devoted to digital and mobile continued to expand rapidly and very strong growth was experienced across all three regions.
Digital registered a marketing budget index value of 75.0 in July while the index value for mobile advertising stood at 72.0 points.
"At current rates of growth, the two media aggregated together should have the largest share of marketing budgets by 2016," World Economics forecast.
The strong performance of digital and mobile appeared to come at the expense of traditional media and July was the eighth consecutive month that the global TV index declined.
With an overall index value of 46.6, below the 50 'no change' level, marketing budgets allocated to TV fared especially poorly in the Americas (40.9) and Asia Pacific (44.2), although there was a small rise in Europe (52.3).
In addition, the proportion of global marketing budgets allocated to other traditional media all declined further in July.
Press registered an index value of 33.1 globally, down by 0.7 on its value in July, while the global index values for radio and out-of-home (OOH) stood at 41.2 and 47.9 respectively.
Radio spend declined across all regions with the Americas registering the steepest fall at 37.3 in July.
Commenting on the report, Ed Jones, the chief executive of World Economics, estimated that global adspend has now surpassed its 2007 pre-crisis peak when measured in real terms.
"Global marketing budgets are still growing in all areas and total advertising expenditure, measured in constant prices, has now overtaken its 2007 peak," he said.
"The trends for mobile and digital media to grow their share of budget allocation continue while TV looks to have entered a secular decline."
Data sourced from World Economics, additional content by Warc staff