Marketing Budget Outlook Remains Positive, Reaches New Peak
by MarketingCharts staff
Marketing budget conditions have improved for the 5th consecutive month, details Warc [pdf] in its latest Global Marketing Index. The budget component of the index improved to a reading of 54.3 this month from 52.9 in April. Rather than following last year’s pattern of diminished enthusiasm between April and May, this month’s index rose to its highest value since the index’s start in October 2011. (A score above 50 indicates a generally improving environment, while a score below 50 indicates a generally declining environment.)
Marketing budget outlook remained strongest in the Americas, increasing from 54.8 to 58, the highest figure recorded by any region so far in the index’s short history. Asia-Pacific followed, with its value increasing slightly from 53.3 to 53.8. Europe fell back below the threshold score of 50, recording a value of 49.7.
The global index for staffing levels dropped again, 57.3 to 56, with values highest in the Americas (56.9) and Asia-Pacific (56.4), ahead of Europe (53.7).
The index for trading conditions remained highest in the Americas, at 60.8, signifying rapid expansion (though down from 61.8 in April). After briefly overtaking the Asia-Pacific region last month in sentiment, Europe fell behind with a score of 56.1 to Asia-Pacific’s 59.9.
The headline global marketing index (GMI), comprised of the budget, staffing, and trading conditions components remained flat at 56.5.
About the Data: Warc’s global panel (1,225 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.
Data collection period: 6-17 May 2013. 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.