• by Joe Mandese  @mp_joemandese, February 29, 2024

Even as U.S. consumer price inflation has begun moderating, advertisers and planners and buyers are seeing their costs move in the opposite direction -- especially for TV and "print" media -- according to just-released first quarter media price inflation estimates form ECI Media Management.

While TV ad costs continue to be under water and moving in a deflationary direction, the erosion of TV ad pricing power has improved from -5.1% in 2023 to -3.1% this year, according to ECI's tracking.

Despite improvements in TV, newspaper and magazine prices, the overall cost of U.S. media has declined from a 1.5% inflation rate in 2023 to a 1.4% rate in 2024, with the main drivers being digital and out-of-home media, though radio has been inching up too.

TV's ad pricing improvement reflects the end of last year's Hollywood strikes, as well as the continued erosion of viewers to CTV.

“In the United States, due to stubborn economic uncertainty and high costs, we expect many advertisers will exercise caution for the first half of this year," predicts ECI Global CEO Fredrik Kinge, noting, "As a result, 2024 is unlikely to be as robust a year as economists and business leaders hoped. Companies will be scrutinizing and optimizing their operational expenses. Advertising budgets will remain flat or slightly decline, with an increased focus on cost containment, efficiency and data-driven media channels."