TV ad rates down in US, UK and Japan

16 September 2009

LONDON/WASHINGTON: Television ad rates will fall by 17.2% in the UK this year, and also experience deflation of at least 5% in the US, Japan, Australia and France, according to WARC's latest Global Media Inflation Benchmarks Survey.

In America, the world's biggest ad market, all major media except cinema will post declines in advertising rates during 2009 in terms of cost per thousand, with radio off by the highest margin, at 11.5%.

Next year, online prices in the country will rise by 0.5%, with magazines also up by 1%, and cinema by a further 2%, but broadcast and newspapers will continue to struggle.

The climate is even more adverse in the UK, where each media channel is likely to record a decrease both this year and next, although the pace of the slowdown will slacken in 2010.

Even the internet, which is set to see inflation in most countries, will struggle in Britain, following up a drop of 8.4% in 2009 with a further slide of 5.8% over the following 12 months.

Online will be the only channel to grow this year in Spain, which like the UK has suffered heavily in the advertising recession, but prices will remain stable in Germany, with TV actually up by 2.3%.

In China, all advertising platforms except newspapers will enjoy double-digit growth in 2009, led by the web, on 17.8%, followed by radio, on 14.6%, and TV, on 12.4%.

The rate of expansion will be slower in India, with newspapers up 9.5%, a figure that falls to 6.8% for magazines, 5.9% for radio, 4.8% for television, and 4.3% for online.

Japan, on the other hand, will experience contractions of 6% for newspapers, 5% for TV and radio, and 3.7% for magazines, with outdoor, online and cinema staying largely static.

Data sourced from WARC