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The following is the Forecast and response of media price rise in 2021 From GroupM Knowledge recommended by recordtrend.com. And this article belongs to the classification: network marketing.
Since human entered the credit currency society, although the performance of inflation in various industries is different, it exists in all walks of life.
In the media industry, the factors that affect the rise of media price basically affect the price by acting on the supply and demand.
On the supply side, several factors have a greater impact on media prices
Consumer’s attention: usually can be measured by some indicators, such as the daily life, monthly life, frequency, duration, etc.
Policies and regulations: inventory changes caused by the state’s supervision of the media industry.
The influence and discourse power of industry giants: including the discourse power brought by the industry concentration of media.
Advertising inventory held by media: mainly refers to the commercialization process of advertising space opened by media.
Demand side: generally refers to the demand from advertisers
Macro economy and consumption: the demand of media market is generally directly related to the economic prosperity, that is, it shows the trend of change in the same direction with important economic indicators (such as GDP and total consumption of social retail goods).
Industry / enterprise’s judgment on future market growth: generally, it takes two years as a cycle. The industry and enterprise will predict the market and determine the budget size of advertising.
Investment demand of new industries: when some emerging industries enter the market, such as the Internet, online education, online finance and other companies in recent years, they will bring new investment demand increment, and the advertising demand will expand accordingly.
Hot events: the occurrence of some hot events and important IP will also lead to the increase of advertising demand. For example, each Olympic Games will bring about 10% increase in advertising demand, and advertisers will flood into the marketing around the Olympic Games in different forms.
Due to the limited time and energy of consumers in real life, and in the credit currency society, the capital investment that enterprises can make in the process of growth is theoretically unlimited. Therefore, in the advertising world, in the media market, the demand is always greater than the supply, so China’s media has always shown a rising trend of premium.
On the demand side, China’s economy has begun to accelerate repair. According to the latest forecast of IMF, China’s GDP growth rate will reach 8.2% in 2021. Coupled with the policy guidance of “internal circulation”, it can be predicted that the basic orientation of China’s economy will be good and the consumption will be accelerated. At the same time, the international market has high expectations for the Chinese market. Both local and international enterprises will have higher growth expectations for 2021, which indicates that more budgets will hit “China” and bring huge consumption and investment opportunities. In addition, the 2021 Tokyo Olympic Games and the European Cup will promote the expansion of the demand side of media delivery.
The supply side is showing a very “tightening” situation. For example, BATB has a very strong pricing power in digital media. At the same time, the total time consumers spend browsing digital media in 2021 will be much less than this year. In addition, 2021 will be an important publicity period, and the inventory rate of commercial dramas will be compressed. In addition, the general rise of comprehensive cost will further pressure the media price.
Finally, the influence of various supply and demand factors will be transmitted to the media price, which will push it to usher in a very high upward wave in 2021.
Specific to different media types, the price rise of each media in 2021 is slightly different:
The advertising revenue of the platform showed high growth, and the low advertising filling rate promoted the price rise to 38%.
Even in 2021, a certain amount of inventory will be released due to the rise of membership price. However, due to the influx of effect advertisers, the inventory is still in a tight state, and the price is expected to rise by 25%.
As a media carrier of value depression, the large screen will benefit from sports events in 2021, with an expected increase of 26% (excluding the impact of copyright).
Like Ott, the increase will reach 5% due to the impact of sports dividend.
Due to different regions, forms and suppliers, the increase shows a trend of polarization. It is expected that the comprehensive growth rate will reach 12% next year.
On the whole, the upward price fluctuation of media in 2021 will reach 57% in the past three years, which is an objective phenomenon left by the epidemic situation to the market and a subject to be faced by the whole industry ecological chain.
In the face of the sharp rise in media prices, according to the research findings of GroupM think tank and the experience accumulated in the market for many years, there are four tips for you to refer to:
Finally, looking forward to 2021, enterprises will have the opportunity to return to the state of high-speed growth. It is suggested that in the media investment, from the conservative attitude of cost first to the positive attitude of growth first; from short-term “bargaining” to long-term strategic investment mode, i.e. “on growth, decisive defeat; light purchase, heavy investment”.
Read more: groupthink tank: China media overview 2020 Golden Autumn Edition – core observation groupthink tank: Communication Strategies of the nine major groups of Chinese urban consumers in 2013 It is predicted that the global advertising market will reach 628 billion US dollars in 2020 Growth of 3.9% year-on-year: overview of Chinese media in 2019 (download attached) groupthink tank: media consumption analysis in post epidemic era; groupthink tank: soft implantation analysis of variety show in the first quarter of 2019; cluster think tank: domestic network animation analysis of video website in 2019; mobile app analysis in the first half of 2019: Social Analysis of e-commerce wechat app of e-commerce think tank: review of major CCTV TV dramas from January to September 2018
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