Global Media Price Inflation Revised Upwards

November 8, 2022

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.

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