Global media prices are set to inflate by an average of 4% this year, slightly higher than the +3% forecast at the beginning of the year. This is per an updated Inflation Report from ECI Media Management.
At the start of the year, ECI estimated that 5 of the 7 media types analyzed would see price inflation this year. This updated report shows that 3 of those 5 media types are now expected to see even higher price inflation than originally expected, with TV seeing the fastest recovery. TV’s updated forecast inflation of +6% is nearly twice that of what was estimated at the beginning of 2021 (+3.4%).
To a lesser extent, digital video and digital display price inflation are expected to grow faster, as well — up from +3.6% and +3.4% in early 2021, respectively, to +4.6% and +4.2%, respectively. On the other hand, radio, which was predicted to see prices inflate by +2.8% early in the year, is now to see slower recovery (+1.6%).
Newspapers and magazines were already expected to see price deflation (-1% and -2.3%, respectively) but are now forecast to see even bigger deflation. Newspaper pricing is now set to deflate -2.9%, while magazine pricing will deflate -4.4%. Despite this increased rate of deflation, global offline media inflation is set to hit +3.5%, up from +2.4% forecast in early 2021, likely driven by the rebound for TV.
Looking at North American media pricing inflation for the year, ECI forecasts a total of +3.8%, with digital media prices inflating by 5.6%. In the meantime, offline media inflation in North America is estimated at +5.6%. ECI expects overall media prices to recover from 2020 levels, with further growth forecast next year.
The full report can be found here.
About the Data: Findings are based on information “derived from a number of sources, including [ECI Media Management’s] network of experts, real client data and agencies.” The data is then cross-referenced with industry bodies and publications, agency traders, and media vendors.