Global marketing budgets fall

Marketing expenditure levels continue to decline around the world, with Asia Pacific and Europe witnessing the most substantial cutbacks, according to Warc's latest Global Marketing Index.

Based on data from a panel of 1,225 executives, the monthly reading for marketing spend reached 46.1 points in August, on a scale where scores over 50 points show conditions are improving, and those below this benchmark reflect the opposite. (A more detailed report is available here.)

In reflection of the increasing pressure weighing on the sector, investment rates have dropped in eight of the 11 months since the first edition of the GMI was published.

The figure for August also constituted a decrease of 1.4 points compared with July, and was mainly driven by a downward trend across Asia Pacific, where totals fell by 4.7 points, to 46 points.

The situation remained largely unchanged in Europe, albeit on a highly negative 40.9 points. The Americas, by contrast, posted an improvement from 52.3 points to 53.5 points month on month.

Indeed, the region has stayed in positive territory on this measure since November 2011, in stark contrast to the considerable fluctuations seen in Asia Pacific and Europe.

"Marketers in Asia Pacific and Europe are reducing budgets," said Suzy Young, Warc's data editor. "In the months ahead, it will be interesting to see if the sudden dip for Asia Pacific is representative of a more deep-rooted downturn."

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