Global, U.S. Ad Cost Inflation Moderates To 3.3%, 2.7%, Respectively

One positive byproduct of the global ad recession -- for the demand-side -- is that media advertising cost inflation has moderated.

“Global media inflation is expected to hold at +3.3% for 2020,” according to an analysis released this morning by ad industry marketing consultancy R3. The analysis, which projects 2020 U.S. media inflation will come in at +2.7%, half a point lower than the global average, also breaks out projections for several other major markets.

R3 said its estimates are based on data provided by the six largest agency holding companies, as well as input from media owners and analysts, and that the 2020 represents an uncharacteristic shift in supply and demand due to the effects of the global pandemic.

“It’s the first time in media history that viewership and engagement has gone up without the same growth potential in inventory and pricing,” states R3 Principal Greg Paull, adding, “COVID-19 has created a very unique challenge for media owners and a very unique opportunity for the boldest of advertisers.”



Next story loading loading..