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DAVP to implement 24% increase in ad rates
The I&B Ministry has approved the hike to meet rising newsprint costs
Following the example of publications such as Outlook and India Today, the Directorate of Advertising and Visual Publicity (DAVP) has increased its advertising rates in the wake of steeply rising newsprint costs.
The DAVP is the nodal agency that undertakes multimedia advertising and publicity for the ministries and departments of the Government of India. A large number of autonomous bodies, too, route their ads through the DAVP.
On the demands of its publication members, the DAVP had suggested a rise of 30 per cent in advertising rates across the board. The proposal was finally mooted by the Information and Broadcasting Ministry (I&B), which approved an implementation of 24 per cent increase in ad rates, instead of the suggested 30 per cent.
Cama is also of the view that even this step will not be sufficient to provide relief to the print media. Additionally, there is a need to take recourse to measures, such as increase in cover prices, to meet the escalating costs of running a publication. He believes that an increase of, say, Rs 5 should not irk a reader, who is looking for excellent editorial content and wishes to have full value for her money.
Another major concern for Cama stems from the fact that it is the big publishers who end up with the bulk of government advertising. So, there is a genuine fear of small publications losing out on the benefits accruing from an increase in ad rates. So, along with the rates, the advertising spends by the DAVP, too, should be increased so that the money spent percolates to the smaller publications.
Smaller publications can, however, rest easy because the increase in ad rates will be applicable to both Central government advertisements and advertising by state governments.
Maheshwer Peri, president and publisher, Outlook Group, believes that the suggested hike in ad rates by the DAVP will largely benefit newspapers or publications that are into government tenders and circulars. For magazines, the hike does not signal any direct benefits. Having said that, he adds, “The hike indicates and validates the hike effected by publications such as ours to keep a check on rising newsprint cost.”