MUMBAI: Marketers be prepared! This year, all media costs globally are poised to rise ahead of economic inflation. According to a survey done by Initiative Futures Worldwide, global media costs will nudge ahead of inflation and the sharpest rise will be seen in emerging markets, whilst mature markets will slow. Also, internet advertising costs could rise as high as six per cent in 2006 due to unprecedented demand.

The report shows that the global average in media continue to rank in the same order from the most expensive - cinema, with a global average cost per thousand (CPT) of $ 59.43, followed by, Internet - $ 16.38; magazines -$ 11.14; newspapers -$ 9.23; television - $ 7.06; radio - $ 6.32, and outdoor, the world's least expensive medium, at a global average cost of $ 5.37.

Comparing the global costs with that of India, the study found that India offers the lowest CPT for cinema advertising ($ 6.28) vis-à-vis global cinema CPT ($ 59.43). Across medium, Indian media costs are significantly lesser to the global media costs with an exception of radio where the CPT stands almost equal at approximately $ 6.5.

Also interesting to know is that while comparing India media costs of 2004 and 2005, the study found that radio witnessed a 100 per cent rise from $ 3.09 to $ 6.47. Should be music to the ears of all the new FM players who are poised to make an entry into the market.

Subsequent to radio has been Internet, with 70 per cent increase in its CPT from $ 2.22 to $ 3.78. Following Internet is a 23 per cent increase in television, 24 per cent increase in newspapers and 19 per cent increase in magazines.

Some of the parameters that were taken into consideration while analysing the India story, were

On the other hand, global media year-on-year trends point to an expected rise of 9.1 per cent in the cost of cinema in 2006, the highest price hike of all media surveyed.

The cost to advertise on Internet should rise by 5.9 per cent in 2006, commanding the second highest price after cinema. Demand is being driven by a surge in Internet users and the rapid uptake of broadband, plus new, and increasingly engaging formats for advertisers. Internet advertising investment is concentrated among a handful of global Internet players and demand is outstripping supply.

Outdoor remains the least expensive, and new technological innovations combined with its unassailable position as a mass medium, make outdoor an undeniably attractive proposition.

The global average in media costs is being driven by developing countries in Eastern Europe, as well as Latin America and China, where high economic growth, surging demand and scarce supply are pushing prices up sharply. On the contrary, mature markets, such as the US and the Western European countries, see a more sedate rise in media costs, often below economic inflation; although the picture varies from medium to medium. For example, the US, the world's largest advertising market, has the cheapest newspaper, magazine and outdoor prices in the world, but the highest TV and Internet costs.

Asia offers the lowest cost of cinema advertising, with the exception of Hong Kong, which has the fourth most expensive cinema costs in the world. Japan, the world's second largest advertising market, boasts the highest radio costs, and although prices in general in the market have remained flat, there are signs of economic recovery. A significant finding of the report is that the cost of TV in China is set to rise by a staggering 20.1 per cent in 2006, due to rising costs and falling ratings.

The report supplies costs by medium, by country, by region, that are real and not ratecard, including typical agency fees. Initiative's media cost and inflation report provides clients with the true cost of media from an advertiser's perspective to help inform their international budget allocation decisions.