Rising media prices because of high inflation is a reality every marketer must navigate.

Here are 4 things you should know:

#1: Media costs are rising… for how long?

Total media spending in the United States will likely climb 11% this year to $294,000 to $0.3B. Much of it because of media raising their prices.

They are not raising their prices solely due to demand and supply – instead they are raising prices because of inflation where without raising the prices, they will be losing money every single week.

The official government figure for inflation is 9.1%.

Private economists say it’s closer to 11-12%.

The reality is, very dollar is worth less. And if you don’t raise your prices. You are making less. What we’re seeing is that media costs are rising, and they will continue to rise throughout 2022 and 2023.

The question is: will the federal government stop overspending and will the federal reserve decrease the massive increase in the money supply they created so that the inflation rate will go down.

It’s unlikely we will see that in the next two years… maybe longer.

#2: Forecasted media cost increases for 2022

  • Broadcasting TV… 15.6%
  • Cable/Satellite… 14.0%
  • Addressable TV… 5.5%
  • Connected TV… 5.7%
  • Pre-Roll… 6.0%
  • Digital Ads… 3.0%
  • Social Display… 2.5%
  • Radio… 3.5%
  • Podcasts… 2.9%
  • Direct Mail… 7.5%

#3: How should you respond to media increases?

When we work with marketers, we create accountable advertising – we’re scientific marketing.

We always know the cost per lead and the cost per sale.

This is something no marketer and no company can compromise on.

As costs rise, you may be forced to decrease marginal media budgets that are not paying out.

You have no choice,

Hard decisions must be made.

And it’s possible you need to be shifting some of your budget to other medium that is producing a better return on investment.

#4: What is inflation? Why inflation in a recession?

Inflation is an increase in money supply greater than the supply, goods, and services.

It’s caused largely because of the overspending by the federal government spiking our debt by trillions of dollars.

Inflation must be under control but until it is, we must live with the inflation knowing we will have to do so for the next few years… and that is part of our marketing strategy and planning.

Can there be an inflation during a recession? Absolutely.

In the 1970s and early 1980s, Ronald Raegan and the federal reserve put a stop to the overspending and to the massive increase in supple. Back then, we were able to get inflation under control. There was also a thing called stagflation – where prices are rising but the economy is not growing and not decreasing, just stagnant.

Stagflation is what could be happening in the next couple of years.

Planning our marketing and advertising campaigns in this environment is different than when the economy is booming. It’s even different than when the economy is in a recession and thus the planning for your media must be calculated in your budgets.

We have worked in times on inflation with clients, we’ve worked in times of recession with clients. If you need help in making sure that you are making the right decisions or if you need a second opinion, we’d be glad to work with you in your marketing campaigns. We can provide you specific services or full services as we have clients worldwide. Give us a call at 615-933-4647 or email Craig at craig@cdmginc.com