I&B announces 25% hike in print media advertisements1 min read . Updated: 08 Jan 2019, 08:02 PM IST
The move is likely to benefit small and medium-sized newspapers greatly, especially those in regional and vernacular languages
New Delhi: There is good news for small and medium-sized newspapers. Ahead of the 2019 elections, the Ministry of Information and Broadcasting on Tuesday announced a 25% hike for advertisement in print media, over and above the existing rate structure by the Bureau of Outreach and Communication (erstwhile Directorate of Advertising and Visual Publicity).
The new rate structure will be valid for a period of three years.
The last revision in advertisement rates took place in 2013, when an increase of 19% was announced over and above the rates of 2010. The move is likely to benefit small and medium-sized newspapers greatly, especially those in regional and vernacular languages.
“Every newspaper has a substantial advertising revenue coming in from the DAVP," said Sanjay Gupta, chief executive officer at Jagran Prakashan Ltd, the company that owns newspapers, including Dainik Jagran and Mid-Day. “Any increase in rates is most welcome and we are grateful given that this was a long-standing demand from the industry."
In a press release, the ministry said the decision was taken based on the recommendations of the 8th Rate Structure Committee constituted by it, which took into account several factors, including the increase in the price of news print, processing charges and others related to the computation of advertisement rates.
“It’s a step in the right direction as it will support regional dailies which rely on advertising. Moreover, since it is an election year newspapers are expected to witness a spike in advertising especially from the government," according to Ashish Bhasin, chairman and chief executive (South Asia), Dentsu Aegis Network Media India Pvt. Ltd.