According to a study by Warc, the cost of buying television and internet advertising in China and India is rising faster than any of the world’s major markets.
Warc’s latest Media Inflation Forecast reveals that TV costs in China and India increased by 16 per cent and 15 per cent respectively in 2014, and will continue to move sharply upwards in 2015, although at a slightly slower rate – at 15 per cent and 14 per cent.
By comparison, in the other markets in the study – which also included Australia, France, Germany, Italy, Japan, Russia, Spain, the UK and the US – TV inflation is running at between zero per cent in Italy, two per cent in Japan and eight per cent in the UK.
The price of a standard billboard in 2014 rose 15 per cent in China and 16 per cent in India, and the same rate of growth is expected next year. Only Russian outdoor media prices shot up quicker in 2014, at 23 per cent, according to Warc. By contrast in Japan, zero per cent outdoor media inflation is expected next year.
For standard internet adverts – 468 by 60 display ads – inflation has been starkest again in China and India, up 13 per cent and 10 per cent respectively this year, with 12 per cent and 10 per cent hikes expected in 2015.
But internet advertising costs fell in Australia by two per cent last year, and are expected to fell by three per cent in 2015.
Print media inflation was the most pronounced in China. The cost for print advertising in China rose by 14 per cent for newspapers and 10 per cent for magazines in 2014, although the rate of increase will slow slightly in 2015, with 11 per cent and nine per cent respectively expected for 2015.
No other market is expected to see double digit inflation in either year, with newspaper costs falling in the US and several European countries, Warc finds.