The Union cabinet’s decision to approve a 26% increase in black and white print advertisement rates, as well as placing a premium on color ads and special placements such as the front, back, and jacket pages, has been broadly welcomed by the news publishing fraternity. However, many feel that the actual benefits may depend on how the government’s advertising budgets are increased or implemented.
Explaining the business of advertisement revenue, a senior executive at a leading Delhi-based newspaper said government ads account for nearly 40% of print advertising — and an even higher share for smaller publications — and as such, the revision could offer a much-needed reprieve.
However, the financial impact would depend on whether the government increases its overall ad spending. “If ad volumes stay constant or departments resize ads to fit existing budgets, the effect could be limited,” the executive said. “But if budgets expand, the higher rates will help offset rising input costs and the revenue pressures that have persisted since the pandemic.”
Newspapers have been strained for revenue over the years as input and raw material costs have increased and revenue sources have plateaued, especially after the Covid-19 pandemic. Even though there has been improvement in the past two years in newspaper revenue, as seen in yearly reports, as well as in IPPStar’s analysis, growth is marginal.
Print ad revenue
Advertisements are a major source of revenue for most newspapers. For example, the print section of HT Media registered an operating revenue of Rs 358 crore in Q2FY26, of which advertisement revenue constituted Rs 278 crore. Circulation revenue was only Rs 53 crore in Q2FY26.
Similarly, DB Corp reported a total revenue of Rs 634.7 crore in Q2FY26, of which advertising revenue stood at Rs 447.8 crore. In comparison, circulation revenue was Rs 120.8 crore in Q2FY26. The results would be more or less similar for most print media houses.
According to the Pitch Madison Advertising Report, in 2024, print adex crossed Rs 20,000-crore mark for the first time post-Covid – reaching Rs 20,272 crore, still a sizeable number, though down in terms of market share (19%) compared to digital (42%), which is a fast-growing medium. In 2019, print had an adex of Rs 20,045 crore, a little more than 2024, with a 30% share of the advertising pie.
Media houses feel inflation has to be taken into account while calculating the margins, as the Central Bureau of Communication (CBC) had last revised print advertisement prices in January 2019 based on the 8th Rate Structure Committee, which were valid for three years. CBC is the unified outreach wing of the union ministry of information & broadcasting. Others said ePaper ads and those in the digital editions of print titles need to be compensated as well.
The senior executive quoted above felt the central hike could prompt state governments to revisit their own advertising rates or at least start a conversation around it, though they are not obligated to follow the Centre’s decision. “This move gives newspapers greater bargaining power,” the newspaper executive said.
MV Shreyams Kumar, managing director of the Kerala-based Mathrubhumi newspaper, described the 26% hike as “a welcome move,” particularly the introduction of premiums on preferred ad positions such as the front, back, and jacket pages. At the same time, Shreyams Kumar also cautioned that the gains could be modest if departmental budgets remain unchanged, noting that the revised rates might lead to a realignment of ad sizes and editions.
Asked if the rate hike could offer newspapers more bargaining power vis-à-vis commercial ads, he said, “For commercial negotiations, CBC rates are not a benchmark.”
Others were more cautious. Another newspaper representative warned that the revision could inadvertently benefit dubious or little-known publications “with inflated circulation figures” that remain on the government’s empaneled list. “Names one may have never heard of, but who claim high circulation. There’s a need to verify circulation claims.”
Cost-correction for print – govt
The government, on its part, while approving the recommendations, described the hike as a cost-correction measure aimed at sustaining the print media sector. In a statement tabled in Parliament, the ministry said the revision followed recommendations of the 9th Rate Structure Committee, which consulted stakeholders, including the Indian Newspaper Society and the All India Small Newspapers Association.
Minister of state for information and broadcasting, L Murugan, said the new rates reflect rising expenses for newsprint, wages, and imported paper. He said the revision would “help sustain local and regional news ecosystems” that continue to play a vital role in government information dissemination despite the rise of digital platforms.
The government has approved premium pricing for color advertisements and special placements. Murugan said that these measures would allow publishers to invest in higher-quality journalism.
However, opposition MPs raised concerns about transparency, urging the government to release the full committee report to ensure the benefits are distributed fairly and do not disproportionately favor larger media houses.
The ministry has yet to commit to releasing the report, but maintains that the decision “balances fiscal prudence with the need to support the long-term viability of print media in an evolving environment.”
