UK media inflation reaches 3.4% – ECI Q4 Report

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ECI Media Management has today released its latest Media Inflation Report, which indicates that as consumer and business confidence grows so media inflation across the world has reached higher than the levels predicted at the beginning of 2021. 

Global media inflation is now at 4% versus 3%, and this trend is also reflected in both offline (at 3.5% versus 2.4%) and online media (at 4.4% versus 3.5%).  

The report also predicts that advertisers and buyers should expect continued inflation into 2022: by 3.4% for offline media and 3.3% for online, although print is expected to deflate further (-2% for newspapers and -3% for magazines).

Although concerns remain in the UK over the risk of new Covid-19 restrictions, supply chain issues, labour shortages and rising inflation and energy prices, media inflation for the market has remained consistent with the 3.4% predicted at the beginning of the year.  

And while TV, OOH and Radio have seen bumps in inflation during the year, they are all now experiencing inflation increases to well above 2019 positions. 

Online 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.

UK media inflation charts:

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ECI Media Management’s Global CEO, Fredrik Kinge, said: “With confidence returning to consumers, businesses and economies across the world, we are also seeing media prices bounce back and expect them to return to pre-pandemic levels in most regions in 2022. 

“Media inflation in the UK specifically has been driven predominantly by CTV and online, which we predict will remain stable into the early part of 2022. 

“Overall media inflation in the UK therefore remains consistent with the 3.4% we forecast at the start of the year.

“TV has been the big success story this year, alongside online media, the latter driven in part by the rise of CTV. 

“As these media types attract increased share of advertising 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 in Q1 each year; TV, Online Display, Online Video, Newspapers, Magazines, OOH and Radio, at a global and regional level, and across 60 countries. 

An update to these forecasts is published later in the year. 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.