‘Too late and too little’: Industry cautious over 26% govt print ad rate hike

New Delhi: The Centre’s 26% hike in print advertisement rates has been welcomed by publishers but described as “too late and too little”, with industry estimates suggesting that the move will translate into only a 10-15% increase in government advertising revenue for most print players as departmental budgets are unlikely to rise proportionately.

In a major policy shift likely to influence nearly Rs 21,000 crore of annual advertising spend, the Ministry of Information and Broadcasting has increased government print advertisement rates by 26%, marking the first upward revision since 2019.

The revision raises the base rate for black-and-white advertisements for one lakh copies of daily newspapers from Rs 47.40 to Rs 59.68 per sq. cm. It also introduces premiums for colour ads and preferential positions such as jackets and front-page placements, categories that publishers say have been under-compensated for years.

The move is expected to translate into a 10-15% rise in government advertising revenue for most print publishers, according to industry estimates, even though departmental budgets are not expected to rise proportionately.

‘Too late and too little’

Commenting on the development, INS President Vivek Gupta welcomed the move but underlined that the delay had weakened publishers.

“It’s too late and too little. Even if we account for a normal 5–6% inflation cycle, this revision has come after an unreasonably long gap. The committee may have been constituted in 2021, but the last effective rate revision happened in 2018, so technically, we’ve waited seven years,” Gupta told BestMediaInfo.com.

He added, “We are thankful to the government for finally moving on this, but we genuinely hope it won’t take this long the next time, because this industry, like any other, has also been facing rising costs.”

Gupta said government ads remain a major revenue stream, and rates need to be closer to commercial levels to offset rising production costs. He welcomed premiums for preferred positions, calling them essential.

“Preferential positions, like the front page or jacket ads, are the hottest-selling inventory. Many times, the government insists on those premium slots, and on several occasions, in the spirit of national service and duty, we have given them free of cost. It has been a long-standing demand of the industry that if premium positioning is required, then it must also be paid for accordingly,” he noted.

The INS chief also highlighted a long-standing gap that has restricted the digital arms of publications from getting a shot of government ad revenue. He highlighted that ads appearing on e-papers and digital editions of print titles are not compensated.

“It is high time we are compensated for e-paper ads as well, because they generate incremental data and incremental value for the government, PSUs, clients, advertisers, everyone,” he said.

He added that the revision will particularly help smaller and regional newspapers.

“It’s not about circulation, it’s about last-mile connectivity. Small and medium newspapers often play a crucial role in information dissemination, and this revision will finally give them a real shot in the arm,” said Gupta.

However, he cautioned against indications that public sector undertaking (PSU) advertising might also be routed through CBC.

“The government has been informally insisting on routing PSU ads through this process, and that is something we would not be very happy about,” he said.

‘Significant’ but controlled impact

At the other end of the spectrum, Suresh Balakrishnan, Chief Revenue Officer, The Hindu Group, called the 26% hike a “significant” correction.

He stated, “It will help the print media industry significantly because a substantial share of its advertising comes from the government. I think this revision will bolster the industry quite a lot.”

Balakrishnan said the hike is not delayed or inadequate, but publishers should not expect a proportionate jump in business. He noted that the real gain for publishers will be moderated by fixed departmental budgets.

“DAVP budgets are not going to increase by 26%. It’s not as if they will release the same volume of advertising as last year but at higher rates this year. They might reduce sizes and adjust accordingly. Overall, I believe most publications will see an effective increase of around 10-15%, and that is still significant,” he told BestMediaInfo.com.

Prasoon Pandey, Head of Investor & Media Relations at Dainik Bhaskar Group, positioned the revision as a recognition of print’s trust factor.

“Print is growing in India. This upward rate revision by the central government reinforces that print remains a force to reckon with and continues to be viewed as the most credible media source. The revision will help boost advertising revenue as well as profitability,” he said.

States likely to follow with slower, staggered increases

An industry expert said the Centre’s hike might have a cascading effect across state governments, though the increases will be more modest and spread out over a longer period.

“State governments typically revise their print advertisement rates 6-18 months after a DAVP revision, but their hikes rarely match the Centre’s. Most states raise rates by 10-20%, depending on fiscal room and circulation slabs.

After previous DAVP hikes of just 8-14%, major states like Maharashtra, Karnataka, Tamil Nadu, Rajasthan and Uttar Pradesh all implemented double-digit increases. A 26% rise at the Centre will definitely put pressure on states to follow suit.”

The expert added that political cycles will influence how aggressively states revise their rate cards.

“Election-bound states could go as high as 15-20%, while mid-tier states may settle in the 8-12% range. Smaller and Northeastern states, which often delay revisions for 3-5 years, may offer only marginal increases of 0-8%.”

According to the expert quoted above, the sharp revision at the Centre strengthens publishers’ bargaining power, especially in the Hindi belt and the South, where they are pushing for parity with DAVP rates and higher premiums. The Centre’s decision effectively resets the pricing anchor for government advertising nationwide.

A revision seven years in the making

The new rate structure is based on the recommendations of the 9th Rate Structure Committee, set up in November 2021. The committee examined cost escalations, from newsprint inflation and wage increases to import price trends, and received submissions from industry bodies including the Indian Newspaper Society (INS), All India Small Newspapers Association, and Small-Medium-Big Newspapers Society. Its recommendations were submitted in September 2023.

The Central Bureau of Communication (CBC), the government’s nodal advertising body, will implement the revised rates.

CBC last revised print advertisement prices in January 2019 based on the 8th Rate Structure Committee; those rates were valid for three years and expired in 2022, leaving publishers waiting since then.

Financial significance for a sector relying on pricing, not volume

Industry reports show that print volume did not grow in 2024, meaning most AdEx expansion came from price increases, not additional space or circulation. In this context, the government’s revised rates offer a rare revenue lever.

The implications are significant for a sector where advertising remains a lifeline. One of the various industry reports pegged India’s print advertising expenditure at Rs 20,272 crore in 2024, growing about 5% despite stagnant volumes.

The report projected Rs 21,691 crore in print AdEx for 2025, a 7% rise, even as print’s share of total AdEx slips from 19% to 18%.

EY’s outlook places print advertising revenue (gross of taxes) at Rs 17,890 crore in 2024, with the segment growing just 0.7% that year.

Taken together, these reports underline the dependence of print on pricing corrections rather than volume growth, making the government’s rate revision one of the few meaningful levers available to publishers.

A 10-15% uplift in government advertising revenue could translate into a meaningful contribution when benchmarked against Print AdEx.

For large publishers with a substantial DAVP share, the gains could shore up margins strained by newsprint volatility and distribution costs. For small and regional publications, which depend more heavily on government advertising, the impact may be even more pronounced.

The 26% hike offers a much-needed correction in an industry that has waited more than half a decade for revised compensation. But uneven cost structures, limited government budgets, and the lack of digital-edition payments continue to leave gaps.

Still, most publishers agree on the broad sentiment: the revision is a boost, though long overdue. Whether it materially strengthens the Rs 21,691-crore print advertising market projected for 2025 will depend on how ministries allocate budgets, how often premium positions are used, and whether digital extensions of print finally find a place in government advertising policy.