As inflation and price pressures gets more aggressive globally, the ripple effect is expected to be more devastating in the media industry. Apart from historical fact that buttresses this conclusion, the current inflationary regime is not only glocal but majorly engineered by macro-economic dislocations and geo-political headwinds.

As headline inflation across markets push beyond single digits, media rates and key pricing elements could rise between 20%-100% in certain markets and campaign channels. It is therefore expedient for media managers, agencies and brand owners to plan ahead by putting in place a strategic plan not just to hedge and tame the uncontrollable rise media rates but to get a competitive advantage in order to numb the effect of advertising on price hikes in the actual pricing of goods and services.

A critical analysis of the current inflationary regime proves that all other things being equal, the problem could take another eight quarters of consistent interest rate hikes by the leading central banks for global inflation to be properly tamed. It is very necessary for brand owners to go back to the drawing board to chart a better way forward in getting ahead of the problem.

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