Image credit: Victoria Heath, Unsplash
According to the latest Media Inflation Report from ECI Media Management media pricing in 2021 is forecasted to bounce back in 2021. The deflation seen throughout 2020 is expected to ease; offline media is set to show optimism and resilience around the globe in 2021, and expected to be consistent with, or even higher than, online.
The only exception is print media as both Newspapers and Magazines are forecast to remain deflationary at a global level, and either deflationary or with lower inflation across regions.
According to the report, APAC enjoyed the most resilient media inflation of any region in 2020: the timing of the pandemic meant that offline was not as deflationary, and digital penetration in the market allowed for increased pricing.
As a result, 2021 will see low single-digit inflation, likely dragged down by deflationary TV in China, which has a large bearing on the region’s offline figures. Meanwhile, digital saturation in 2020 and resulting price hikes mean that prices are unable to grow much more.
“With media inflation across the world looking set to bounce back and the vaccine offering the prospect that the world will start to reopen, we are optimistic about the year ahead for the advertising industry. However, some caution is still required as we wait to see how measures against the pandemic progress,” said ECI Media Management’s Global CEO, Fredrik Kinge.
“With TV pricing likely to increase in 2021, there is still plenty of opportunities for brands to maximize consumer reach. And as digital increases both its inflation levels and its share of advertisers’ budgets, it is imperative that advertisers understand the transparency and effectiveness of their investments in order to drive higher media value.”
ECI Media Management’s Annual Media Inflation Report forecasts media inflation for seven key media channels every February; TV, Digital Display, Digital Video, Newspapers, Magazines, OOH, and Radio, at a global and regional level, and across 60 countries. An update to these forecasts will be published in Q3 2021.
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