Zenith has put a number on the rise in cost of television advertising

By AdNews | 8 June 2022
 
Credit: Gabriel Valdez via Unsplash

The cost of television advertising will rise 11% to 13% this year according to analysis by ROI agency Zenith. 

According to Zenith’s latest Advertising Expenditure Forecasts report, sustained growth in demand from advertisers is pushing up media inflation, particularly in television, where the supply of audiences is falling steadily as viewers switch to alternatives.

Price rises vary widely for different audiences in different countries, says Zenith.

But Zenith says the global average cost of television advertising across all audiences is expected to rise by 11%-13% this year.

Online video prices are expected to increase by about 7%, although in this case the supply of audiences is rising.

Other digital channels where supply is climbing and volumes are flexible are inflating only modestly, with 3% average price rises forecast for social media and other digital display.

Out-of-home and radio prices will go up about 4% this year, while print prices will remain stable, because demand for advertising in printed publications is falling as rapidly as readership.

Zenith: "Brands that simply buy broad audiences to achieve reach targets will not be able to avoid having to spend more to reach the same audiences.

"But brands that use first-party data to identify their most profitable customers, and combine it with third-party data to target their best prospects in the most efficient channels, will be able to mitigate much of the effect of media inflation.

"The huge and growing volume of digital content consumption is making it more effective for brands to scale by aggregating digital audiences."

Zenith predicts 62% of ad budgets will be spent on digital media in 2022, up from 59% in 2021, and that this proportion will reach 65% in 2024.

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