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TV Ad Budgets Worldwide Hit As Digital Soars

Trend Summary: TV Budgets worldwide continue to be hit by rapid growth of digital media, especially in the USA.

The Headline Global Marketing Index [GMI] for May 2015, published by, registered an index value of 55.6, indicating that marketing activity continues to grow worldwide. This expansion was evident across all regions, recording Headline GMI values of 55.9 (Europe),  56.0 (Asia Pacific) and 55.2 (The Americas). The survey also revealed ...

... that the allocation of marketing budgets assigned to TV fell further with an index value of 45.9, below the 50.0 ‘no change’ level.

May was the third successive month in which the value of the global TV index fell, as it did in each region, while Europe experienced feeble growth in the medium with an index value of 50.6, down by 1.1.

Revenues allocated to TV fell in absolute terms in the other regions. The plunge in TV’s share of marketing budgets was particularly severe in the Americas where an index value of 39.3 was recorded, down by 2.1 on the previous month.

Traditional media, TV, Out-of-Home, Radio and Press, continued to fall vis-à-vis the allocation of marketing budgets assigned to them worldwide. This decline is attributable to the rapid growth of Digital and Mobile advertising (via Internet) which, on an extrapolation of current trends, are collectively set to become the world's largest media segment by 2016.

Digital and Mobile advertising in May recorded global index values of 79.1, up by 0.7 and 75.6, up by 0.4, respectively.

Budgets allocated to these media continue to rise rapidly in all regions. In contrast, expenditure on Print continue to fall, recording a Global Index value of 32.1 in May. This pattern of decline was repeated across all regions.

According to ceo Ed Jones: "The Headline Global Marketing Index reading for May indicates continuing growth in business activity."

He added: "Marketing Budgets are still expanding across the world apart from the Americas where spending has stagnated. The rising trend in spending on Mobile and Digital media has continued at the expense of TV and other traditional media.”

Read the original unabridged report.

[Estimated timeframe:Q2 2015 - Q4 2016]

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