Pay more for less
The latest advertising inflation data from Media Manager Online revealed that the effective price for advertising rose significantly on many media platforms.
Media Manager Online (MMO) released its new Inflation Watch data for January to March 2012, showing that while the performance of TV, print and radio advertising declined, the price for advertising on these mediums increased.
According to MMO’s Media Inflation Watch (MIW), which provides a measure of South Africa’s media inflation, all mediums except online advertising showed an effective increase in advertising rates.
The following table provides an overview of price increase and the Media Inflation Watch statistic (which provides an indication of the cost of reaching 1,000 people) year-on-year (January to March 2012 versus January to March 2011).
| Cost of advertising | |||
| Medium | Rates | Performance | Price to reach 1,000 people |
| Online | -1.30% | 0.00% | -1.3% |
| Cinema | +16.20% | +9.30% | +6.40% |
| +5.36% | -5.12% | +11.76% | |
| Radio | +6.17% | -4.92% | +14.70% |
| TV | +17.14% | -0.39% | +19.79% |
| Total All Media | +10.45% | -2.33% | +14.71% |
Andrew Glanville from Media Manager’s explains that the large overall increase in effective advertising costs was partly fuelled by the SABC’s increase in advertising costs and decrease in viewership.
Glanville explained that SABC1 increased rates by 34% while its viewership slumped by 9%, which yields a massive +48.0% MIW (CPM) increase.
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