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WARC: Media Inflation Driving Up Ad Costs


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The cost of advertising is rising across platforms, led by television, according to a new study from WARC.

TV CPMs are up by almost 10 percent this year, having risen by 31.2 percent since 2019. This is the steepest rise in more than two decades, WARC Media reports.

The average global TV CPM will hit $20.01 this year, up from $17.92 last year. In the U.S., TV CPMs are on track to hit $73.14 this year, a 40-percent hike on prices pre-Covid-19. In Australia, meanwhile, they are down to $34.69 this year from $35.55 last year. U.K. TV CPMs will edge up slightly to $10.56.

Digital media costs are also rising—paid social CPMs were up 33 percent from 2019 to 2021. Inflation in advanced TV formats in the U.S. is forecast to reach 9.9 percent this year.

“As linear TV’s share of total media consumption declines, particularly among younger audiences, brands are looking elsewhere for incremental reach,” said Alex Brownsell, head of content at WARC Media and author of the report. “However, the efficiency of delivering reach via non-TV channels is being threatened by inflation across the media ecosystem. As the global economy teeters on the brink of an inflationary recession, media costs may experience further volatility. Nonetheless, non-video channels are worth consideration if they are right for the audience.”











About Mansha Daswani

Mansha Daswani is the editor and associate publisher of World Screen. She can be reached on mdaswani@worldscreen.com.

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