Warc Index Shows Marketing Budget Decline

Marketers are growing more pessimistic following cuts to their budgets across Asia Pacific and Europe and stagnant figures in the US, according to Warc's latest Global Marketing Index (GMI) report.

Warc's GMI combines monthly responses from a global panel of marketers regarding trends they have observed in marketing budgets, trading conditions, and staffing levels - with a metric of 50 indicating no change, and a reading of over 60 indicating rapid growth.

At 50.1, November's figure is the lowest headline reading since the index began in October 2011. By global region, the Americas continues to be the most positive (53.2), followed by Asia Pacific (51.2), with Europe remaining in negative territory at 48.2.

Marketing budgets dropped to their lowest index value since November 2011, with the index now standing at 46.0 globally, which Warc says represents a sharp drop from October's 48.8. US marketers failed to record improving budgets for the first time in 13 months (50.0). Their counterparts in Asia Pacific cut budgets sharply in November (to 46.8), and Europe witnessed the steepest regional decline during the period (to 42.6).

Staffing levels seem to be improving worldwide (51.1), but for the first time, European marketers registered a drop in the number of employees compared with last month (49.4). However, conditions remain positive in both the Americas (56.6) and Asia Pacific (51.4).

Suzy Young, Data Editor at Warc, comments: 'It's 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.'

Warc (World Advertising Research Center) is online at www.warc.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.