WFA: APAC media inflation set to soar in 2025, 2026

Media inflation across Asia Pacific is set to climb in 2025 and accelerate further in 2026, mirroring a global trend of rising media costs, according to the latest World Federation of Advertisers (WFA) Outlook report. This means brands will need to dig deeper into their pockets to maintain the same media presence.

The WFA report, synthesising forecasts from leading agencies, predicts sharp cost increases across key APAC markets. The second edition of WFA Outlook 2024, which aggregates inflation forecasts from leading media agencies and consultants, reveals 2024 media price inflation forecasts have picked up slightly from 3.1% in April to 3.3% now, with increases in US and Western Europe offsetting forecasted reductions in China and Japan.

India leads the charge with a projected inflation rate of 9% in 2025, soaring to 9.6% in 2026. This might be a brutal hit for brands vying for attention in a fiercely competitive market.

China, another important market, anticipates a rise from 3.6% in 2025 to 5.4% in 2026. Even traditionally stable Japan is expected to see an uptick, moving from 1.8% in 2025 to 3.1% in 2026. Australia, after a projected rise to 4.7% in 2025, is predicted to see a slight dip to 3.0% in 2026, though this still represents a significant cost compared to previous years.

These increases reflect a broader global pattern.

Nine of the top 10 global media markets are predicted to experience higher inflation in 2025 compared to 2024. As shown in the chart above, the US, for instance, is projected to see a rise from 2.1% to 2.3% in 2025, further accelerating to 3.9% in 2026. Germany anticipates a substantial jump from 5.3% in 2025 to 8% in 2026, outpacing even some APAC markets. The UK, while offering a momentary respite with a slight dip to 2.3% in 2025, is predicted to face renewed inflationary pressure at 2.1% in 2026.

Several factors contribute to this inflation trend. Globally, increasing demand for premium inventory, particularly in digital and connected TV environments, is a key driver. The rise of retail media, while offering new opportunities, also adds to the competitive landscape and pushes prices upwards. In specific APAC markets, factors like the rapid growth of digital media consumption in India, coupled with increasing competition, fuel higher inflation. In China, the ongoing development of sophisticated digital advertising ecosystems and the increasing importance of ecommerce platforms contribute to the price escalation.

Demonstrating the unexpected spike in UK TV advertising costs in Q2 2024, that triggered by a decline in viewership, the report also stresses on the need for brands to adopt more agile approaches to media planning. Tom Ashby, global lead, media services at WFA, talks about the importance of leveraging these insights for the 2025 planning process. He adds, "While the global aggregated figures quoted will not apply equally to every advertiser or media owner, the data sheet offers valuable insights for planners to leverage as they move deeper into the 2025 planning process.”

The WFA Outlook report is compiled from anonymised forecasts provided by nine major media agency groups and consultants including Cortex Media, Dentsu, Ebiquity, Havas, Magna, MediaSense, OMG, Publicis Media, and IAB.