The percentage of advertisers who say their demand for media is improving has hit its highest mark since May, according to the year-end edition of a monthly tracking study published by WARC, the London-based aggregator and publisher of marketing and media research. The index for “global trading conditions,” or demand for buying media, showed “significant improvement” -- rising to a 57.1, up from 53.4 in November.
The index is derived by taking the percentage of marketing executives who report that conditions have improved versus those who reported it was either down or unchanged. An index of 50 is the dividing line marking a net improvement between overall expansion and contraction. December marks the highest point in WARC’s global trading index since May.
WARC’s trading index rose to 61.1 for the Americas, followed by 55.6 for Asia-Pacific and 54.1 for Europe.
According to WARC, an index of 50 represents no change, while an index over 60 indicates “rapid growth.”
The trading index mirrors the sentiment among marketers in WARC’s overall Global Marketing Index, which also takes into account overall marketing budgets and staffing. There too, the Americas are leading the global marketplace. While WARC’s overall is a 52.5 globally in December (up from 50.1 in November), the Americas expanded 3.6 points to a 56.8, while Asia-Pacific ticked up 0.3 point to 51.5 and Europe expended 1.5 points to a 49.7.
"The outlook for global trading conditions is positive according to the December data, but this confidence has not carried over to budget setting,” noted WARC Data Editor Suzy Young, adding: “There remain a number of risks to future global economic growth and marketing strategies are, consequently, defensive."