ECI Media Management has released its latest Media Inflation Report Update, which provides updated forecasts for media inflation in 2022. The report indicates that media inflation in North America is higher than in other markets, rising to 6.2% as opposed to early year predictions of 5.4%.
Across the region, TV inflation is expected to continue to be high at 13.4%, a little higher than ECI forecast at the start of the year – but only modestly so. Online Video inflation is also expected to be high (8.2%), driven in part by CTV pricing, which is also higher than predicted in January. Meanwhile, Print continues to be deflationary, in line with initial expectations.
5-year trend, 2018-2022, US
Regional media inflation 2022, by media type
By comparison, global media inflation forecasts have risen to 5.2%, a little higher than was predicted at the start of the year (4.5%). This is largely down to high CPI inflation. This trend extends to both Offline and Online inflation, which are forecast to be higher than expected at the beginning of the year. North America sees the highest overall inflation (6.2%), followed by EMEA (5.9%) and LATAM (5.8%), while inflation in APAC (3.6%) continues to be lower than in other regions, driven largely by China.
Globally, Offline is higher than Online in all regions except APAC; but all media types are expected to be inflationary, with the exception of Magazines. As anticipated, TV is experiencing steep inflation in all regions, although it is expected to be lower in APAC at 4.1%. It will be highest in North America (13.4%) and EMEA (11.3%).
Latest Fintech News: Larky’s nudge Added to Finastra’s Fusion Digital Banking Platform
ECI Media Management’s Global CEO, Fredrik Kinge, said: “Consumer confidence grew at the start of 2022 as the world economy started to bounce back after the global pandemic, and media prices were no exception. In North America, media inflation rises were driven predominantly by CTV and Online channels. But what we are seeing now is even higher inflation, fuelled by the after-effects of the pandemic, the war in Ukraine, rising fuel prices and the very real threat of a recession.
“Furthermore, the US is preparing for mid-term elections in November, which will see spend on political advertising rising to an estimated $9.7 billion, having already surpassed total spend in the 2018 and 2020 election cycles. This will have an impact on both national and local advertisers. It is therefore vital that advertisers understand the transparency and effectiveness of their investments in order to drive higher media value.”
ECI Media Management’s annual Media Inflation Report, published annually in the first quarter, forecasts media inflation for seven key media channels: TV, Online Display, Online Video, Newspapers, Magazines, OOH and Radio, at a global and regional level, and across 50 countries. Today’s report is an update to the forecasts published earlier in the year, focusing on key countries. ECI Media Management’s experts have been tracking media inflation since 2012, providing unrivalled understanding of trends over time. Their information is derived from a number of sources, including their global network of experts, real client data and media agencies. It is cross-referenced with industry bodies and publications, as well as with agency traders and media vendors, so it reflects the expertise of those with an impact on trading variables.
Latest Fintech News: Dragonfly Financial Technologies Launches FinTech Integration Center
[To share your insights with us, please write to sghosh@martechseries.com]
