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Hike in print media ad rates will boost industry: Study

Press Trust of India  |  Mumbai 

The hike in will give a fillip to the industry, according to

The on Tuesday had announced a 25 percent increase in the rates for newspaper advertisements by the Bureau of Outreach and (erstwhile Directorate of and Visual Publicity).

The rates which came into immediate effect will be valid for three years.

The last revision in advertisement rates took place in 2013 when an increase of 19 per cent was announced over and above the rates of 2010.

The move will directly boost revenue of print industry, which was valued at around Rs 31,800 crore in FY18. After the TV segment, with about 37 per cent, print is the second largest contributor to the industry's revenue at around 35 per cent.

"This decision is expected to benefit the companies operating in the Indian print industry, which have seen a fall in operating and profit after tax margins, since the December 2017 quarter. The first half of FY19 experienced decline in revenues due to limited revenues owing to shifting of the festive season to the third quarter of the year with muted ad spends in auto, education and retail industries, rise in newsprint prices coupled with rupee depreciation," it said.

The agency also noted that the move will raise the offered by the government, which earlier were much lower at about just around 10 per cent of the commercial ad rates on print, but contributed around 15 per cent of the total of small and medium sized papers.

"About 70 per cent revenue of a comes from advertising. This move to hike will bring a rise in operating revenues of newspapers, especially regional and small players which rely heavily on advertising," it said.

The expected heavy spend in advertising from the government during FY19, due to the season, will act as a catalyst for the revenue jump of the print industry during the year, it added.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, January 09 2019. 19:20 IST