WARC: 2021 Strongest Year Ever for Marketing Budgets Globally

WARC has released the annual review of its Global Marketing Index (GMI) over the 12 months of 2021, which it says marks the strongest year ever for marketing budgets globally, led by growth in digital, mobile, TV and out-of-home.

The GMI shows the recovery of 2021, with a consistent overall increase in growth since January—though with a slight decrease in the rate of growth in September. November recorded the highest index value since the inception of the GMI at 65.5—a drastic improvement from May 2020, when the index sank to its lowest ever value of 19.7 at the height of the Covid-19 pandemic.

Key indices in the Asia Pacific, Europe and the Americas remain in growth, though “it is a tale of two halves,” says WARC. AsiaPac markets, which have operated a zero-Covid strategy, saw decreased rates of growth in the summer, in line with restrictions being imposed, contrasting to markets in Europe and the Americas, which decided to live with the virus and consequently saw the highest rates of growth in the same period. Despite this, markets in the Asia Pacific have since recovered with marketing budgets and trading conditions showing a higher level of growth compared to Europe and the Americas.

The marketing budgets index for TV is the highest traditional media channel in terms of budget growth. The adaptability of the medium means that it is not as affected by restrictions as other channels such as press, radio and OOH and yet can still see high levels of budget growth when restrictions are lifted.

Analysis from WARC’s Marketer’s Toolkit saw a decrease in the 2022 net budget outlook for TV (-8), indicating a slight decrease in confidence in the channel compared to 2021’s outlook of -7.

Zoe McCready, senior research executive at WARC, said: “The Global Marketing Index 2021 shows a consistent overall increase in growth throughout the year, which culminated in November, recording the highest Global Headline Index value since the inception of the report in 2011.

“This reflects an industry that is largely weathering the impact of the pandemic as it rapidly adjusts to new trading conditions, which point to the ongoing strength of digital and mobile channels driven by the continued rise of e-commerce. Increased staffing levels recorded globally make up for the impact of the Great Resignation, however, this could present productivity challenges in 2022, especially in the Americas, due to factors such as skills shortages.”