2021 Media Inflation Update and How to Deal with I...

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The factors affecting media inflation are explained in detail in the 49th Media Express in 2021 , so we won’t repeat them here. Let’s review the major changes from both demand and supply side:

Supply Side

Policy regulation impact: The supply side reduction is mainly caused by the impact of policies . First of all , 2021 is the 100th anniversary of the founding of the Communist Party of China. At the same time, this year is also the beginning of the 14th Five-Year Plan, and it is also the beginning of the new journey of building a modern socialist country in an all-round way. Based on this, TV stations will restrict some drama shows and variety shows while reducing advertising resources. Secondly, National Radio and Television Administration continues strengthen policy supervision on the drama topic, sky-high remuneration of stars, the ratings fraud, and the revamped TV series, also cause the incremental reduction of new drama.

Media morphosis: The advocation of staying local for the 2021 Spring Festival released early which allows advertisers and media to prepare for it in advance . The State Council also encourages the media to increase the supply of programs of the Internet, TV, and radio during this period , so that consumers have more opportunities to reach advertisements than last year. While for the Tokyo Olympic Games  which already postponed for a year, the first time behind closed doors without overseas spectators mode will consume much more sporting events advertising inventory than before. Members can skip advertisements is still one of the most important factors affecting OTV inventory.

Audience change: Although there are signs of epidemic recurrence in the beginning of 2021, but they are quickly got control with efficient epidemic prevention and control mechanism. And with the attendant is the popularity of the vaccine, people are spending much more time on outdoor activities. The internet use of consumers will return to the new normal.

Demand Side

Macro: Compared to last year's city closure which caused by outbreak of the Covid-19, the epidemic has been further alleviated with the free open vaccination this year; CPI, GDP, CCI(Consumer Confidence Index) and other macro-economic indicators has increased a greater extent than last year to boost domestic demand. At the same time, imported inflation has inevitably leaded to an increase in raw material costs, and all major industries have experienced the market inflation.

Industry: For industries which overseas markets are affected, they are facing internal pressure of facing traffic and the dual challenges from the market and income from external; they need to broaden the size of the market led to increased demand, which is very visually reflected in the advertiser's ad spending.

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