ECI Media Management reveals that media inflation at a regional level will largely follow the same story as global inflation. In its annual Media Inflation Report, the firm says that the global inflation rate for radio in 2023 is forecasted at 3.2%, which is up from 2.3% in 2022. The forecasted inflation rate for radio is lower than TV (6.8%), online video (5.1%), and Out of Home (3.8%). Online display (2.8%), newspapers (1.7%), and magazines (0.8%) are the only media types that have a lower forecasted inflation rate.
Overall media inflation in North America will be 4.2%, which is mostly driven by TV inflation, which is higher than any other medium but still significantly lower than 2022 levels.
“The U.S. media industry is facing several significant challenges in 2023,” the report read. “This includes ongoing changes in advertising markets, pressure on consumer spending due to inflation, and the cost-of-living crisis, as well as evolving media habits and preferences.”
The 2023 Media Inflation Report notes that both the U.S. consumer and the U.S. economy have exceeded forecasts. “Despite the simultaneous headwinds of rising interest rates and high inflation, U.S. economy consumer spending kept GDP growth going,” the report continues. “Additionally, improvements to the Q3 2022 GDP figures indicate a better economic expansion on H2 2022.”
Even with economists predicting a recession to start in Q1 2023 and three quarters of consecutive negative GDP growth, ECI believes any downturn will be “minor and short-lived” and growth should recover in 2024.
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