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US TV ad pricing to deflate by 1.9% in 2023 finds ECI Media Management report

ECI Media Management is to publish quarterly updates to its Media Inflation Report, to provide advertisers with the most up-to-date and accurate information on which to base media investment decisions.

The update focuses on ten key markets globally – the US, the UK, Germany, France, Spain, Italy, China, South Korea, Australia and Mexico, providing updated inflation forecasts for seven media types in 2023, and ECI’s analysis of any changes that have occurred.

With rising inflation, interest rates and the cost-of-living skyrocketing in many countries, consumers are tightening their belts and businesses are following suit. Marketing budgets are being slashed again and many companies have had to make significant layoffs. Media pricing has reflected the changing situation, with inflation slowing in many markets thanks to decreased demand as marketers scrutinise their budgets. 

One of the key updates in the latest report (Q2 2023) is that TV pricing in the US is forecast to deflate by 1.9% in 2023,  a fairly radical change compared to the Q1 report, in which ECI forecast that TV pricing would inflate by 6.6%.

OOH and radio are expected to hold steady thanks to an increased number of employees returning to the office, increasing drive time and road traffic. Online Video increase is experiencing significant growth in part due to the proliferation of AVOD services; the fragmentation of CTV is allowing for more precision marketing.

In the UK, TV inflation is forecast to continue its downward trend, the result of a drop in revenue year-on-year and a slowdown in the decline in audience viewership. OOH should see a bump thanks to increasing revenue, with two-thirds of the medium now digital. Radio inflation will remain consistent with 2022 estimates, although price increases are expected from both Bauer and News Broadcasting.

Fredrik Kinge, Global CEO of ECI Media Management, commented: “It is our hope that, armed with these insights, advertisers will feel confident in their ability to not just survive the current situation, but to capitalise on the rapidly-changing media landscape and economy context in order to drive higher media value for their brands.”