Media Pricing Expected to Stabilize in 2011
It’s been a difficult couple of years for the media industry. Advertisers, particularly those in telecommunications and auto, have pulled quite a lot of spending during the recession. Plus, traditional media has been greatly impacted by new media opportunities, as audiences become more and more fragmented. But this year, we’re seeing some signs that indicate things are starting to look up for the media industry.
What’s in store for 2011? Advertisers are returning and ad spending will slowly increase as the media industry begins to recover. Although we haven’t seen major rate adjustments, we wouldn’t be surprised if there are slight increases in media pricing this year. In fact, the American Association of Advertising Agencies is projecting an overall media inflation of 3.8 percent.
Based on our observations, here are some suggestions to keep in mind as you plan for the upcoming year:
- Don’t anticipate 2011 media costs to increase significantly, with the exception of cable TV, which is expected to see double-digit increases in rates this year.
- Plan as early as possible to lock in rates now (if you haven’t already done so), before rates begin to increase.
- Try to plan budgets for 12 months to allow as much negotiating power as possible.
- Have a contingency budget to take advantage of extra space opportunities.
- Look at local spot television if budgets allow. If planning for cable, plan especially early to lock in lower rates.
