- Tags : Marketing | Media Placement & Fulfillment Services | Price trend | Price forecast | Procurement research | Category market forecast
Recent Price Trend - Media Placement & Fulfillment Services
The price of media placement and fulfillment services has been rising at an estimated annualized rate of 2.5% during the three years to 2017. The rate of price changes has varied among suppliers, with the advertising conglomerates at the top of the market instituting higher price increases than most other suppliers. This discrepancy reflects the growing dominance these top suppliers have over the market, which has allowed them to charge a premium for their services. In addition, advertising conglomerates’ collective experience in the market and greater networks have empowered them to negotiate more cost-effective and efficient media deals, providing them with further leeway to increase prices at a faster rate than other market firms.
Even so, all suppliers have increased prices, regardless of type. A rise in demand resulting from growth in total advertising expenditure has driven this price growth. As total advertising expenditure has increased, it has cultivated demand for media placement and fulfillment services, because media is needed to deliver advertisements to their intended audience. This trend has overshadowed stagnation in the growth of the number of cable TV subscriptions.
Rising input costs have also supported price growth in the market. The price of advertising has grown as the population has expanded, boosting the number of potential media consumers. This trend has led to greater media consumption and has increased the value of advertising. Suppliers have raised their prices in response.
To the benefit of buyers, price volatility for media placement and fulfillment services is inherently low because suppliers are reluctant to institute extreme price changes for fear of becoming uncompetitive. Low price volatility allows buyers to accurately budget for their media buying service orders. As a result, buyers need not enter into long-term contracts to hedge against potential price spikes.
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