Television advertising costs have shot up since the Covid-19 pandemic, according to a new report.
The bi-monthly Global Ad Trends Report from WARC looked at global data across advertising and media and the rising cost of incremental reach.
The television cost per thousand (CPM) has risen 32.2% since 2019, which is the steepest increase for more than 20 years. Year-on-year it’s seen a 9.9% uplift.
While the trend is particularly noticeable in the US, where TV CPMs are forecast to reach $73.14 in 2022 (up 40% to pre-Covid) this is reflected globally.
According to WARC Media’s data, advertisers in the food sector spent an average of 79.8% of their budgets in TV in 2019. In the automotive category, that was 67.7%. Had they maintained the same level of investment, the volume of impressions would have decreased by 18% in 2021.
Digital Media
The increased cost of television advertising and fewer people tuning into linear programming has also impacted digital advertising.
Paid social CPMs increased by 33% between 2019 and 2021 according to Skai.
Video on demand and streaming advertising also rose, up 9% in 2022.
“Bargains”
The report does point out that offline channels haven’t seen the same levels of price inflation post Covid. That includes radio, which generally remains the same, or just below 2019 levels.
Out of Home – both digital and static – is 3.1% lower in the UK than it was in 2019.
“As the global economy teeters on the brink of an inflationary recession, media costs may experience further volatility,” explained Alex Brownsell, Head of Content, WARC Media.
“Nonetheless, non-video channels are worth consideration if they are right for the audience.”
