Media inflation is a persistent headache for US marketers. Rising costs across digital, television, and out-of-home channels are eating into budgets and impacting campaign reach and effectiveness. Simply throwing more money at the problem isn’t sustainable. The solution? Strategic optimization and a laser focus on efficiency.

Here’s a snapshot of the challenge, showing the average percentage increase in media costs across key channels over the past five years:

Source: Standard Media Index, Magna Global & eMarketer; note 2020 Out-of-home reflects pandemic hit

While the dramatic spikes of 2021 have moderated, media costs continue to climb.  So, how can CMOs and brand marketers combat inflationary pressure?

1. Embrace Data-Driven Optimization:

Blindly allocating budget based on past performance is a recipe for disaster in an inflationary environment. Rigorous data analysis and analytics is crucial. This means:

• Granular Performance Measurement: Go beyond basic metrics. Track performance at the platform, creative, audience, and keyword level.
• Attribution Modeling: Understand the true impact of each touchpoint in the customer journey.
• Real-Time Optimization: Continuously adjust campaigns based on performance data, shifting budget to the most efficient channels and tactics.

2. Diversify Your Media Mix:

Don’t put all your eggs in one basket. Explore a wider range of channels, including:

• Connected TV (CTV): CTV offers targeting capabilities and a growing audience, often at a lower CPM than traditional TV or other digital options.
• Retail Media Networks: Reach consumers at the point of purchase with highly targeted ads.
• Digital Audio: Explore podcasts and streaming audio platforms to reach engaged audiences.
• Influencer Marketing: Leverage the power of authentic voices to connect with your target market.
• Test emerging platforms.  Emerging platforms are usually priced very efficiently to ensure superior ROI to build a loyal client base and smaller platforms normally have more highly engaged viewers/listeners.

3. Negotiate Aggressively:

Review your agency team’s buying power and industry relationships.  The best teams will take the additional time and steps to secure the best possible rates.

4. Focus on Creative Excellence:

In a crowded and expensive media landscape, breakthrough creative is more important than ever. High-quality, engaging creative will capture attention and drive results, maximizing the impact of your media spend.

5. Partner with a Highly Skilled Media Agency:

This is where a strong media agency becomes invaluable. Navigating the complexities of media inflation requires specialized expertise and deep industry relationships. A skilled agency will:

• Develop data-driven strategies: Leveraging advanced analytics to optimize your media mix and maximize ROI.
• Negotiate favorable rates: Using their buying power and market knowledge to secure the best possible pricing.
• Identify emerging opportunities: Staying ahead of the curve and identifying new, cost-effective channels.
• Provide transparent reporting: Giving you a clear understanding of campaign performance and how your budget is being spent.
• Offer agility: Being able to quickly adapt the media plans and move money to where the best returns are being generated.

Combating media inflation requires a proactive, data-driven, and strategic approach. By embracing the strategies and partnering with a skilled media agency, you can ensure your marketing budget delivers maximum impact, even in a challenging economic environment. Don’t let rising costs derail your growth; instead, use them as a catalyst for smarter, more efficient marketing.