In the US, TV CPMs are expected to reach $73.14 in 2022, up 40% from pre-Covid-19 prices
The cost of investing in media is increasing in the world and TV is the medium that has suffered the greatest impact, according to a survey by the marketing intelligence service Warc. Globally, TV CPMs (cost per thousand) are up 31.2% since 2019, the highest percentage in more than two decades. In 2022, the increase is already at 9.90%.
The process mainly noticed in the United States. L, TV CPMs are expected to hit $73.14 in December this year. The value represents an increase of 40.0% compared to 2019 numbers.
The study also shows that some categories have experienced the new scenario with more weight. According to data from Warc Media, food brands invested, on average, 79.8% of their budgets in TV in 2019, and automotive brands, 67.7%. If the contribution level was maintained, by 2021 the volume of prints would have dropped by 18 percentage points.
Digital media also increases
Media inflation is also felt by the advertising market when seeking audiences on digital channels. Social media CPMs were up 33% between 2019 and 2021 (source: Skai).
The cost of advertising on platforms such as Amazon also grows, as do the costs of over-the-top advertising (OTT or streaming video). In the States, disbursements on advanced TV formats are expected to rise by 9.9%, according to the World Federation of Advertisers (WFA).
Despite the sharp rises in the main market media, some media such as radio and OOH present a different dynamic, reports the study. In Australia, the average cost of radio over the year is 1.1% below pre-pandemic levels. In the United States, the picture practically did not change over the three years.
Something similar also happens OOH, taking into account static and digital panels. In the United Kingdom, the prices of external advertisements are 3.1% lower, and in the United States, 5.8%.
For Alex Brownsell, head of content at Warc Media and author of the report, says that as the share of linear TV in total media consumption drops, brands are looking for reach elsewhere.
“However, the efficiency of delivering reach through channels other than TV is being threatened by inflation across the media ecosystem,” he says.
