Inflation isn’t just something consumers deal with. As was the case last year, as 2022 has progressed, media prices have also inflated faster than expected. According to the latest report [pdf] from ECI Media Management, global media prices are set to inflate by an average of 5.2% this year, higher than the +4.4% forecast [pdf] at the beginning of the year.
A number of economic factors are impacting media price inflation, including fuel shortages and cost of living increases. However, CPI inflation is a particularly large factor, per the report. Other considerations include the threat of global recession, the war in Ukraine, the US mid-terms, environmental disasters, and new political leaders around the world. Key sports events also play a role, as do tech developments such as the delayed death of the cookie and the metaverse.
Add it all up and offline media price inflation is expected to be +6.5%, up from +5.7% in the previous forecast. Online inflation will be more moderate, at +4.5%, though that’s up from the previous forecast of +3.6%.
TV’s updated forecast inflation of +9.4% is easily the leader among the media types analyzed, though it hasn’t changed much from the previous forecast (+9.3%). TV is followed by online video, for which price inflation is expected to be +6.2%. This is a significant revision from the +4.9% in the Q1 forecast.
TV and video price inflation are expected to be higher than average in North America, at +13.4% and +8.2%, respectively, with the latter driven in part by connected TV (CTV) pricing.
Meanwhile, although expected 2022 price inflation hasn’t changed much for TV, it has for other offline media. Out-of-home media costs are forecast now to rise by 3.4%, almost triple the +1.2% forecast from earlier this year. The latest forecast is also much higher for radio (+2.9%) than it had been (+0.8%). And, contrary to the forecast from the beginning of the year (-0.9%), newspaper prices are now expected to inflate, albeit by a small amount (+0.7%).
In fact, of the 7 media types measured, only one has been revised downwards: digital display (+2.8%, versus the earlier +3.1%).
The full report can be found here.