Radio Ad Costs Hold Steady As U.S. Media Inflation Slows.

Media inflation is expected to remain in check this year, with the U.S. showing one of the slowest rates of rising costs around the globe. That is the assessment of ECI Media Management, whose latest Media Inflation Report tells marketers that uncertainty over the impact of tariffs will remain a factor worth watching and could have some carryover impact on media spending.

“Overall media inflation in North America is expected to be at 2.5%, down from 3.4% in 2024,” the report says. ECI says U.S. radio costs have remained fairly stable during the past five years with radio prices rising in the low-single digits, other than for a slightly larger bump in 2021 and 2022. But during the last two years, it says radio costs have been relatively flat. In 2025, ECI predicts advertisers will pay 1% more for radio ad time.

Beyond radio, ECI forecasts nearly all U.S. media will see “little variance from their 2024 positions,” except for CTV. The arrival of new entrants to the market spreading viewership across platforms has led to what it says is a “deflationary trend” for CTV. The digital video channel had significant deflation last year, with prices down 15%. This year they are predicted to drop another 10% on average.

“Media inflation does not happen in a silo; indeed, it often acts as a bellwether for the prevailing economic, political and cultural context,” the report says. Noting the “seismic” impact of tariffs and domestic U.S. politics, ECI analysts say 2025 is “indisputably” the year of Donald Trump and that will have an impact on media pricing and the advertising industry in general. “Aside from the economic implications of the tariffs, advertisers will also feel the impact, especially those in apparel, electronics and consumer goods. Higher costs will lead to tightened belts for consumers and marketers alike,” it says.

It is not just the U.S. where media inflation is becoming less of a factor. “Most media types are forecast to see slightly lower inflation in 2025 than in 2024 at a global level,” the report says.

EMI says overall global media inflation is forecast to drop slightly in 2025, to 3.9% from 4.3% in 2024. That includes a projected increase of 2% in radio costs worldwide, a rate double that of the U.S. Yet radio costs worldwide will grow at the slowest of any media channel. EMI forecasts global online costs will rise 4.6% this year and out-of-home prices will climb 5%.

There are variances around the world. While North American media costs are projected to increase 2.5% overall, that is lower than in other regions. In Latin America, costs are forecast to jump 9.8%, with ad costs climbing 5% in Europe, the Middle East and Africa, and rising 4% in the Asia-Pacific region.

“The media and advertising industry is showing remarkable stability, a testament to the resilience of brands the world over,” says ECI Global CEO Fredrik Kinge, who says 2024 was a “rollercoaster ride” for many marketers. “In terms of sports and elections, 2025 is set to be less busy, although the impact of Donald Trump’s second presidency and the changes he is driving through in American society — with effects on the rest of the world — is something that advertisers are very much having to take into consideration as they plan for 2025 and beyond. And that’s before we get to the impact of AI.”

As for the U.S. economy overall, ECI says a familiar pattern appears to be holding firm. “The end of 2024 marked yet another economically impressive year for the U.S.,” its report says. It notes the U.S. economy grew 2.8% last year. But analysts say that has done little to change the tone of the business climate. “Despite showing such strength, it appears that the U.S. can’t shake the recurring theme of uncertainty, preventing investment and consumption from fully flourishing,” it says.

Download the latest ECI Media Inflation Report HERE.