- TV Inflation down from 14% to 11%
- Digital Inflation down from 9% to 8%
- Marketers to invest 30% more on Digital , 50% more on Mobile
SHANGHAI – Monday, March 27th, 2015 – According to a new report from independent marketing consultancy R3, China’s net media inflation will see increases of between 5 to 11% for most main media, with TV leading the way at 11%.
Chris Lo, Senior Consultant, R3
“It’s clear that the slowdown is affecting everyone in China – including media owners” said Chris Lo, Senior Consultant at R3. “This is the smallest increase in the last five years of our tracking in China” he added.
To calculate these numbers, R3 surveyed more than fifty of China’s top marketers and media agencies and produced an aggregated result looking at both ratecard and projected net inflation. While there were some variances, the general consensus is that real inflation will continue to rise in high single digits, well above the 3% CPI forecast for 2015. “Given the historically dynamic industry, media inflation is still at high levels versus consumer goods costs – if China continues this slowdown, then this gap has to close “ added Mr Lo.
SHIFT IN BUDGETS FOR 2015
R3 also used this opportunity to benchmark changes in investment patterns for 2015 – with TV’s growth now curbed at the expense of Mobile, Digital and even Outdoor. “The Outdoor industry has now become a heavily digitized one itself, hence the ongoing growth for the sector” added Mr Lo. “The real pressure is going to be on print, which is seeing 9-11% decline in overall investment, and yet are still asking for 5-6% media inflation – expect to see this sector under pressure through the year” he added.
VIDEO, WEBPORTALS LEAD THE WAY ON DIGITAL INFLATION
Breaking down Digital into its components, marketers and agencies are forecasting some quite different rates of inflation. “Online video is continuing to prove itself as a viable option to TV, hence net inflation rates here are anticipated at a much higher rate than Ad Display” added Mr Lo. R3 will repeat the study again early in the new year to verify all this data
INFOGRAPHIC:
ABOUT R3
R3 is a global marketing consultancy, focused on improving the effectiveness and efficiency of marketers and their agencies. Founded in 2002 , it works with eight of the world’s top twenty global marketers, including Unilever, Coca-Cola, AB InBev, Unilever, Diageo, Samsung, Nestle, JNJ and General Motors. For more information, visit www.rthree.com, or contact Talia Tay at [email protected] +86 21 5271 6505
