The cost of advertising is soaring across all channels, with TV the most obvious.
While the debate over the reach and influence of digital media over traditional offerings such as television and radio intensifies, advertisers need to keep an eagle eye on rising costs.
Globally, the new World Advertising Research Center analysis has found that media inflation is driving up the cost of advertising across all channels, with TV most affected. Globally, TV CPMs 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 the US, where TV CPMs are forecast to reach $73.14 in 2022, an increase of 40% on pre-Covid costs.
In a local industry note, media agency group Meta Media says increasing media costs can be attributed to factors beyond the control of stations, media owners and agencies such as the effects of load-shedding, the pandemic lockdown, the July riots last year and flooding. Veteran media planner and strategist Gordon Muller tells the FM the entrenched formulaic approach to reporting media inflation is beginning to sound a little bit like the proverbial “the dog ate my homework story told by an errant schoolboy”. He says one needs to recognise that real media inflation is as much a function of poor planning strategy and retained discounts, or rebates, as it is about rate cards and audiences.
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