Media price inflation to rebound by 3% – ECI

media price inflation - ECI report

Media price inflation across the world is set to rebound by around 3% in 2021 following a heavy drop-off last year due to the coronavirus pandemic.

That’s according to ECI Media Management, whose latest Media Inflation Report forecasts that media pricing across the world is set to bounce back this year. 

Media price inflation forecast

The deflation seen throughout 2020 is expected to ease: offline media is set to show optimism and resilience in 2021 around the globe, and expected to be consistent with, or even higher than, online. 

ECI noted that the only exception is Print – both Magazines and Newspapers are forecast to remain deflationary at a global level, and either deflationary or with lower inflation across regions.

The UK was one of the markets hardest hit by pandemic, experiencing a large reduction in advertising investment. Although restrictions currently remain in place for the population, media prices are expected to experience inflation in 2021. 

TV, OOH and Radio are predicted to bounce back sharply, to well above their 2019 positions. 

UK media inflation forecast 2021
Back to business. ECI sees media price inflation return amid ad market bounce back.

Digital media, which retained their inflationary positions during 2020, will see less dramatic increases in price, while Print is expected to follow the global trend and remain deflationary.

“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”, ECI Media Management’s Global CEO, Fredrik Kinge, said. 

COVID caution

“However, some caution is still required as we wait to see how measures against the pandemic progress.”

“With TV pricing likely to increase in 2021, there is still plenty of opportunity for brands to maximize consumer reach. And as digital increases both its inflation levels and its share of advertising budgets, it is imperative that marketers understand the transparency and effectiveness of their investments.”

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. 

ECI Media Management’s experts have been tracking media inflation since 2012, providing unrivalled understanding of trends over time. 

Their information is derived from a number of sources, including their global network of experts, real client data and media agencies. It is cross-referenced with industry bodies and publications, as well as with agency traders and media vendors,

so it reflects the expertise of those with an impact on trading variables.