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Continued pressure on media owners kept media inflation — the rate at which the cost of an advertisement rises — to just under 4% in 2016. That’s the lowest it’s been in the past four years.
Figures from Media Inflation Watch (MIW) for January to September 2016 show this is largely due to low television rate increases.
MediaShop strategist Belinda Kayton says there have been a number of changes to the measurement landscape in the past year and while most media owners have moved to a net rate card, some have increased the commission level to 17% and some have stuck to a 16.5% structure.
"To make sure we compare apples with apples, all historic, current and future rates are reduced to net of commission," she says. Most media owners are responding to the harsh economic conditions and increases have been "modest".
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