The economic environment of the CEE media markets in 2023

In 2023, media markets across Central and Eastern Europe faced a challenging economic landscape influenced by high inflation, modest growth, and a shift consumer behavior. which all have impacted advertising budgets and investment strategies.

The region exhibited varied economic performance, with Poland, the largest economy in CEE, experiencing its weakest growth in decades at just 0.2%. Other significant economies, like the Czech Republic and Hungary, also showed minimal growth or contractions. Notably, Hungary struggles with extreme inflation, peaking at 25.7% earlier in 2023 but it is projected to decline significantly by 2024, which also caused the overall spending on Hungarian media market to drop, despite the nominal growth. Inflationary pressures were widespread, with rates around 10% in Romania and exceeding 9% in the Baltic states, which were reflected in media prices too.

Bosnia and Herzegovina and Romania were exceptions, showing moderate GDP growth of 1.7% to 3%, driven by domestic consumption despite external economic pressures. Serbia's media market, although experiencing a notable 7% growth, was largely influenced by inflation, while Slovenia managed a 1.6% growth amidst recovery efforts from catastrophic flooding.

High inflation has forced advertisers to adjust their strategies, often reallocating budgets towards digital platforms which provide more measurable outcomes in the economic uncertainty. In the traditionally TV-strong market, Bulgaria, television faced challenges as businesses shifted towards digital channels to handle tighter budgets. This trend was mirrored across the whole region as companies adapted to changing consumer behaviors and heightened cost pressures.

Ukraine demonstrated remarkable resilience during the ongoing war, with the economy growing by 5.3% in 2023. This recovery, however, was heavily constrained by the persistent impacts of the hits on infrastructure and business operations.