Advertisers are being urged to double down on transparency and effectiveness to shore up media value amid rampaging inflation across the globe.
Wherever you turn media inflation is growing uglier, with a 3.6% expected rise across APAC (up from a 2.9% increase a year earlier) pushing the headline global rate up to an eye-watering 5.2% in 2022 – up from 4.5%.
Leading the inflation pack is North America (6.2%), closely followed by Europe, the Middle East and Africa at 5.9% and Latin America at 5.8%.
The worrisome state of affairs is documented by the latest media inflation report compiled by ECI Media Management, which leaves no stone unturned from Beijing to New York to lay bare the true scale of the problem. Pinning the blame squarely on elevated consumer price index inflation, the report shows that there are few refuges from rising costs.
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ECI Media Management’s global chief executive officer Fredrik Kinge said: “What we are seeing now across the world is even higher inflation, fueled by the after-effects of the pandemic, the war in Ukraine, rising fuel prices and the very real threat of a recession. China’s weak growth is the main factor in the overall slowdown of economic growth in East Asia and the Pacific, which the World Bank forecasts at 3.2% compared to 5% in April of this year.
“Furthermore, in September, the Japanese yen slid to its lowest point against the US dollar in 24 years, while the value of the Australian dollar has also decreased against the US dollar, putting upward pressure on goods traded in US dollars. As a result, inflation in Australia has hit 7.75%. Given the challenging economic climate across the APAC region and rising media inflation, it is vital that advertisers understand the transparency and effectiveness of their investments in order to drive higher media value.”
The APAC figures show TV inflation to be 4.1% up on where it was at the beginning of the year, although this remains far below levels in America (13.4%) and Europe (11.3%). Online video is also experiencing rapidly rising costs, up 3.9%, with only print providing some respite from the maelstrom with modest 0.7% inflation.
Prices have bounced back dramatically since a 2021 report as online prices surge at the expense of offline media.