Media costs to rise

01 November 2012

LONDON/WASHINGTON: Television and online advertising rates are set to increase in most major markets both this year and next, according to Warc's latest Media Inflation Forecast

The study covers 11 nations and is based on a poll of four global media agencies regarding whether media prices, in terms of the cost of reaching 1,000 adults, are likely to rise or fall. (Warc subscribers can view more detailed figures here.)

Overall, it was predicted that reaching an audience of this size with a 30-second TV spot would become more expensive in ten of the featured countries in 2012, led by China, with a 23% expansion from 2011, and Russia, up by 12%.

India was also pegged to deliver a 7% lift on this metric, although the rapidly-growing economy may well lag the 8% leap attributed to the US.

By contrast, Spain is expected to register a 10% decline on the same measure, reflecting the financial troubles impacting the country. The UK and Australia should see the equivalent costs remain flat.

In keeping with such trends, the online banner ads of 468 x 60 pixels will see their cost per thousand surge by 23% in China on an annual basis, alongside logging gains of 18% in Russia and 12% in India.

Less positively, this type of internet ad will register an 8% decrease in Australia. This rate of contraction could come in at 2% in Spain and 1% in America.

Turning to print, the cost per thousand for full-page colour newspaper ads was due to witness inflation in eight markets. China will again head the charts, up by 11%, standing at 6% for India and 4% for Russia.

Conditions appear to be slightly more challenging for magazine publishers, given that declines were forecast for Australia, Italy, Japan and Spain.

Elsewhere, the cost of reaching 1,000 adults via radio and outdoor ads were anticipated to rise in 11 countries, with Japan serving as the outlier in the former case, and Spain in the latter.

Looking to 2013, television and online were expected to yield double-digit increases in China, India and Russia, not least due to the growing importance of these nations among brand owners.

Spain was named as being the only country where TV may endure a decline in 2013, off by 1%. Australia, down by 5%, and France, with a 3% contraction, assumed this position for the web.

Data sourced from Warc