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Will Inflation Make Ads More Expensive? This Study Reveals the Answer

It seems like pretty much everything is starting to get extremely expensive these days, with inflation running rampant in virtually every part of the world right now. Consumer inflation has become so bad that it has broken records that are decades old, with the 7.5% inflation that people are seeing right now being worse than anything they have seen in the past forty years or so. This begs the question, will ads start to get even more expensive as well?

With all of that having been said and now out of the way, it is important to note that digital ads have already started to become more expensive due to a wide range of factors. However, ECI Media Management estimates that things are not going to be quite as bad, with ad price inflation expected to lag behind general inflation that is being seen for most consumer goods that people are going to want to buy at some point or another.

According to these estimates, digital ad prices in North America are expected to become 5.4% more expensive this year. That’s pretty heartening because it is a fully 28% lower than general consumer inflation, but it should be noted that the rest of the world is probably going to do better from that perspective. Global costs for digital ads are likely going to rise by 4.5%, which means that ads in North America are going to increase their prices at a rate that is faster than the rest of the world.

However, the fact that inflation for digital ads is not as severe as for everything else is definitely a good sign. Chances are that things will start to taper out this year, with some level of normalcy being achieved by the time 2023 comes around. Suffice it to say that most advertisers will be waiting with bated breath, and print media will continue to see a deflation in ad prices which indicates the relatively low demand for print ad space. The market might correct this in due course but it will be a rough year for marketers without a shadow of a doubt.

Read next: Here’s Why Digital Advertising is So Expensive in 2022

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