NEWS1 August 2016

Marketing budgets take a hit

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UK – Marketing budgets fell in the Americas and Asia-Pacific in July and although they grew slightly in Europe, they were down considerably on June following the uncertainty as a result of the Brexit vote.

The World Economics’ Global Marketing Index (GMI) fell 0.8 to 54.1 (down from June’s figure of 54.9 and May’s 55.1 ). In Europe it fell 1.3 from 58.0 in June to 56.7 in July – in the Americas it fell 0.6 to 52.5 and stayed the same in Asia at 54.6 according to Warc.

The score is based on a global panel of 2,000 members with GMI rated as positive or negative against a value of 50 (no change) – the more distant the index is from 50 the greater the rate of change.

Traditional advertising – TV, press, radio and OOH – all registered below 50 values, showing a decline in spend in this area.