Study: Media inflation in APAC rises but still held stable due to China

Media inflation in the APAC region has risen to 3.6%, an increase from the early-year predictions of 2.9%. This is according to ECI Media Management's latest Media Inflation Report Update, which provides updated forecasts for media inflation in 2022. The report indicates that although TV inflation in APAC is expected to be higher (4.1%) than anticipated at the start of the year, it remains low compared to that of other regions. Online video is expected to see more moderate inflation (3.9%) than in any other region. Meanwhile, print will experience only slight inflation (0.7%)

By comparison, global media inflation forecasts have risen to 5.2%, a little higher than was predicted at the start of the year (4.5%). This is largely down to high consumer price inflation. This trend extends to both offline and online inflation, which are forecast to be higher than expected at the beginning of the year. North America sees the highest overall inflation (6.2%), followed by EMEA (5.9%) and LATAM (5.8%), while inflation in APAC (3.6%) continues to be lower than in other regions, driven largely by China.

Globally, all media types are expected to be inflationary, with the exception of magazines. As anticipated, TV is experiencing steep inflation in all regions, although it is expected to be lower in APAC at 4.1%. It will be highest in North America (13.4%) and EMEA (11.3%).

The lower inflation seen across the APAC region is largely driven by China, where inflation is moderate and stable, whereas the Pacific region, including Australia, is more in line with global inflation levels.

ECI Media Management’s global CEO, Fredrik Kinge, said, “Consumer confidence grew at the start of 2022 as the world economy started to bounce back after the global pandemic, and media prices were no exception. But what we are seeing now across the world is even higher inflation, fuelled by the after-effects of the pandemic, the war in Ukraine, rising fuel prices and the very real threat of a recession.”

China’s weak growth is the main factor in the overall slowdown of economic growth in East Asia and the Pacific which the World Bank forecasts at 3.2%, compared to the 5% in April of this year. Asian business leaders have warned consumers that pricing will remain high, even as central banks across the world raise interest rates in an effort to fight inflation, explained Kinge.

Furthermore, in September, the Japanese yen slid to its lowest point against the US dollar in 24 years, while the value of the Australian dollar has also decreased against the US dollar, putting upward pressure on goods traded in US dollars. As a result, inflation in Australia has hit 7.75%. Given the challenging economic climate across the APAC region and rising media inflation, it is vital that advertisers understand the transparency and effectiveness of their investments in order to drive higher media value, said Kinge.

ECI Media Management’s annual Media Inflation Report, published annually in the first quarter, forecasts media inflation for seven key media channels: TV, Online Display, Online Video, Newspapers, Magazines, OOH and Radio, at a global and regional level, and across 50 countries. ECI Media Management’s experts have been tracking media inflation since 2012, providing unrivalled understanding of trends over time. Its information is derived from a number of sources, including its global network of experts, real client data and media agencies. It is cross-referenced with industry bodies and publications, as well as with agency traders and media vendors, so it reflects the expertise of those with an impact on trading variables.

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