In a move aimed at bolstering the traditional media industry amid its rapid transition to digital platforms, the government of India has approved a 26 per cent hike in advertisement rates, raising the print media rate for black-and-white ads from Rs 47.40 to Rs 59.68 per sq. cm for dailies with a circulation of one lakh.
The government has also agreed to the recommendations of the Committee relating to premium rates to be offered for colour advertisements, preferential positioning.
In a statement issued here, the Ministry of Information and Broadcasting stated that the rates for release of advertisements in Print media by Central Bureau of Communication (CBC) were last revised by the Ministry on the basis of the recommendations of the 8th Rate Structure Committee (RSC) in January, 2019, which were valid for a period of three years.
The 9th Rate Structure Committee under the chairmanship of Additional Secretary & Financial Adviser (I&B) was constituted in November 2021 for making recommendations regarding revision in rates for Government advertisements in print media.
The Committee, during its proceedings between November, 2021 and August, 2023, considered the representations from various newspaper associations of small, medium and big category newspapers viz. Indian Newspaper Society (INS), All India Small Newspapers Association (AISNA), Small-Medium-Big Newspapers Society (SMBNS) and other stakeholders.
The Committee also deliberated on the various parameters having an impact on the rates of advertisements in print media, such as WPI inflation in respect of Newsprint, wage, rate of inflation, trend of imported newsprint prices, processing cost, etc. The Committee submitted its recommendations on 23 September, 2023.
“Increasing the rates for government advertisements in print media will yield several significant benefits, both for the government and the media landscape. Higher rates for government advertisements will provide essential revenue support to print media, especially in an era of competition from various other media platforms and in view of the escalation in cost in the last few years. This can help sustain operations, maintain quality journalism, and support local news initiatives. By boosting financial stability, print media can invest in better content, thereby serving the public interest more effectively,” stated the Ministry.
The upward revision in advertisement rates can align with broader trends in media consumption. By recognizing the value of print media in a diversified media ecosystem, the Government can better target its communications strategies, ensuring that they reach citizens effectively across various platforms, the statement read further.