Content image

Ad buyers have been negotiating a dramatic spike in TV media costs since mid-2020, according to the latest Global Ad Trends report on the rising cost of incremental reach.

Globally, TV CPMs (cost per thousand) have increased 31.2% since 2019 – the steepest incline in more than two decades – and are up 9.9% year on year in 2022. The trend is especially pronounced in western markets: in the US, TV CPMs are forecast to reach $73.14 in 2022, an increase of 40.0% on pre-COVID costs.

A twin trend of declining linear TV viewership and rising costs in markets like the US witnessed over the past decade is encouraging advertisers to pursue incremental reach elsewhere – particularly via ‘advanced TV’ platforms. Yet marketers must also be wary of rising costs in these channels.

While not matching the increases seen in linear TV, the latest data from the WFA forecasts average inflation of 9.9% for advanced TV in the US in 2022, incorporating addressable ads in linear TV, connected TV streaming and VOD platforms. A similar picture emerges in social video. 

WARC Media's latest report focuses on the rising cost of incremental reach. If you do not currently have access, please get in contact.

Key findings include:

  • Linear TV represented 37.9% of daily media consumption in North America; by 2022, that percentage is forecast to drop to 24.5%.

  • In the US, where TV CPMs are forecast to reach $73.14 in 2022, an increase of 40.0% on pre-COVID levels in 2019.

  • Channels like BVOD provide an alternative source of incremental reach; however, OTT ad costs are rising, too.

  • Attention research suggests that not all incremental reach is equally effective; channels with higher CPMs may deliver better-quality attention.