UK media inflation is set to reach 3.8% in 2023, down from 4.0% last year according to a new report released by consultancy firm ECI Media Management.
Indicating a general downward trend as the inflationary spike begins to decrease, TV inflation is down 7% on last year, currently standing at 9.7%, although it is set to remain significantly higher than other types of media such as Online Video (predicted to reach 3.5%); Online Display (2.5%), Out of Home (2.6%); Radio (2.5%), Newspapers (-2.4%); and Magazines (-2%).
Globally, media inflation is predicted to reach 4.4% this year, down 0.8%, with Latin America particularly affected registering figures of 8.4%.
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The EMEA region is seeing the second highest global levels of media inflation at 4.9%, followed by North America (4.2%) and APAC (4.0%).
“Media prices continue to rise across the world, albeit more steadily than over the last few turbulent years. TV in particular is set to inflate more slowly, raising questions about whether TV pricing is starting to stagnate. This could be driven by advertisers shifting TV budgets into CTV, or by the fact that this will be a quiet year in terms of sport and other major events that drive eyeballs to TV,” ECI Media Management global CEO, Fredrik Kinge said.
“With a global recession seemingly all but inevitable in 2023, this is not an easy context in which to operate for brands, as consumers tighten belts, and energy and supply chain costs continue to rise. However, there is a strong case to resist the impulse to reduce media investment, as well as ample evidence that brands who continue to invest in longer-term brand-building activity enjoy stronger growth during the recovery and beyond. It is therefore more important than ever that media investments are effective; focus, precision and transparency are key.”
