Cortex Media & AuditStar 2024 Media Inflation Insights

The “Media Inflation Outlook” report by Cortex Media and AuditStar provides a comprehensive analysis of media inflation forecasts for 2024, focusing on key regions such as the US, the Americas, Europe, and Asia Pacific.

Media inflation refers to the rising cost of advertising across different media channels like TV, digital, and print. As these costs increase, businesses need to spend more to reach the same audience.

This report is essential for stakeholders in the global pharmaceutical media industry to understand the changing landscape and to strategize effectively. Below are the key highlights and comparisons from the report:

 Key Stats from the Report

1. US Media Landscape:

• Media inflation in the US is expected to average 3.2% in 2024, with a significant ad spend increase of 8.4%, driven by political spending.
• Linear TV inflation is low at 1.3%, reflecting a shift towards digital video, which is expected to see 3.5% inflation.

2. Canada’s Digital Surge:

• Media inflation is higher in Canada (5.3%) compared to the US, with notable inflation in Linear TV (9.5%) and Connected TV (8.0%).
• Digital media, especially Connected TV, is experiencing rapid growth, easing inventory pressures.

3. Brazil’s Media Inflation:

• Brazil shows a higher overall media inflation (6.4%), driven by strong growth in Linear TV (7.5%) and OOH (7.5%).
• The shift towards digital formats is significant, with online media expected to capture a larger share of ad spend.

4. Mexico’s Advertising Market:

• Media inflation in Mexico is projected at 5.3%, with Linear TV at 6.3% and OOH at 7.0%.
• Presidential elections in 2024 will boost media demand, impacting inflation and ad spend dynamics.

5. Europe’s Media Variations:

• The UK and Germany have lower media inflation rates (around 2.0% and 5.0%, respectively) compared to France (3.3%) and Italy (5.3%).
• Linear TV inflation in Germany (8.7%) and France (7.4%) is significantly higher than in the UK (2.0%).

6. China’s Digital Dominance:

• China’s GDP growth is strong at 5.2%, with media inflation averaging 4.0%.
• Online ad spend is dominant, accounting for 80% of total media budgets, highlighting the shift towards digital platforms.

7. India’s High Media Inflation:

• India exhibits the highest media inflation in the region at 7.5%, with Linear TV inflation at 11.5%.
• The rapid growth of digital video (8.5%) underscores the country’s increasing digital media consumption.

8. Japan and Australia’s Media Trends:

• Japan’s media inflation is moderate at 3.0%, with balanced growth across media types.
• Australia’s Linear TV inflation is high at 7.5%, but overall media inflation remains low at 2.7%.

9. Global Media Inflation Summary:

• The global average media inflation is 3.2% for 2024, with the highest rates in Australia (7.5% for Linear TV) and India (8.5% for Digital Video).
• Digital media continues to dominate, especially in markets like China and the US.

10. Future Media Landscape:

• The shift from linear TV to digital streaming is a key trend, influencing ad spend strategies.
• The growth in out-of-home (OOH) media, driven by digital advancements and political spending, presents new opportunities for advertisers.

Considerations from solli

The “Media Inflation Outlook” highlights significant shifts and trends in the media landscape for 2024. To make the most of this report, pharmaceutical media planners may consider the following actionable steps:

1. Strategic Budget Allocation: Consider adjusting media budgets to account for higher inflation in digital and OOH media, particularly in regions like Brazil and India.
2. Leverage Digital Growth: Observing the rapid growth of digital media, especially in markets like China and the US, suggests that investing more in digital video and social platforms could help reach a broader audience efficiently.
3. Monitor Regional Variations: Paying close attention to regional differences in media inflation can be insightful. For example, allocating more resources to digital and streaming in the US, while being mindful of higher linear TV costs in Europe.
4. Stay Ahead of Trends: Keeping an eye on emerging trends, such as the shift from linear TV to digital streaming, may help in adjusting strategies to follow audience movements and remain relevant in an evolving market.

To read the full report on the Cortex Media website click here.