According to the latest World Federation of Advertisers (WFA) Outlook report advertisers should expect media prices to rise by around 4% a year in both 2025 and 2026, signalling a new normal for global media inflation.
This inflation, despite having steadied, is now embedded, which is reflective of broader economic trends of sustained inflation.
However, this steady increase hides some sharp contrasts between regions and media channels, which advertisers should be aware of when making investment choices.
Market differentiation
The report shows that in markets like the US, UK and Western Europe, media inflation is relatively stable and is between +3% and +5%.
This is said to be due to cautious advertiser behaviour and more efficient and gradual digital buying.
However, in emerging markets, such as Eastern Europe, where inflation stood at +11%, and India at +9%, prices are rising much faster.
Notably, the report highlights how growing economies and rising demand from local advertisers are pushing up the cost of reaching audiences.
Not all screens are created equal
Broadcaster video-on-demand (BVOD) commands the most substantial price inflation of any channel at around +5% per year.
While prices for Connected TV (CTV) are almost flat at +1%, as supply still outweighs demand, and fragmentation continues to weaken pricing power.
Notably, linear TV remains resilient at +5% inflation, which the report explains is due to the shrinking of audiences, which are still highly valuable.
Digital is no longer cheap
Despite once being seen as a cost-effective option, the report shows digital media is no longer a deflationary force.
Channels like paid search, social video, and retail media are inflating at the same pace as the global average of around +4-5%.
This means advertisers considering shifting more budget into digital shouldn’t assume lower costs and performance and value should be reviewed appropriately to justify the spend.
Local knowledge is key
Furthermore, the report highlights sharp differences within regions. Inflation in Northern Europe is steady, while Eastern Europe is surging.
In APAC, Japan remains stable, however, inflation is rising quickly in India and Hong Kong.
This offers opportunities for advertisers, with those who understand how inflation is playing out differently by market and by channel being better placed to stretch their budgets further and improve campaign performance.
What is clear is that media inflation is not going away; instead, it is becoming a consistent, embedded part of media planning.
Tom Ashby, global lead of media services at WFA, said: “Advertisers need to work harder to get more from their media budgets.
“Understanding how prices are shifting across regions and channels will be key to maintaining effectiveness.”
