BackGovt mulling raising ad rates for print media, move to help struggling industry
Rates for government ads in both print and electronic media are decided by the advertising and visual communication divisionThe newspaper media has been struggling for a long time as newsprint and logistics costs have risen
PremiumThe government is considering a proposal to increase advertisement rates for print media, according to sources familiar with the development. The ongoing 40-day national lockdown has dealt a severe blow to the print media with corporates pulling out advertisements because of drastic fall in circulation of newspapers and magazines. Sources said the government was concerned by the distress in the sector and is keen to prevent its escalation.
“A request had come from the industry people for a hike in advertisement rates. The work is in progress. There could be some decision in two-to-three weeks on the hike," a government official told Mint.
Rates for government advertisements in both print and electronic media are decided by the advertising and visual communication division (AVCD), which is part of the ministry of information and broadcasting’s umbrella body, Bureau of Outreach and Communication (BOC). AVCD is the erstwhile directorate of advertising and visual publicity (DAVP).
The fixed rates for advertisements don’t apply in all cases, pricing for content like branded programming being of a subject of negotiations centred around matters like a channel’s own reach and duration of broadcast.
The newspaper media has been struggling for a long time as newsprint and logistics costs have risen while more and more people have shifted to consuming content online. Increased mobile penetration improving broadband connectivity and availability of more regional content has also fuelled the shift towards online content, both news and entertainment.
AVCD is the nodal division of BOC for dissemination of information about various schemes and policies of different ministries and government departments, public sector undertakings and autonomous body. BOC acts as an advisory body to the government on its media strategy.
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