Print media is on a recovery path after the vagaries of the pandemic, with newspapers and magazines both registering modest growth, says the latest EY-FICCI M&E report. The segment is expected to have steady readership levels for at least the next three years.

However, the sector has not been able to reach its pre-Covid levels with advertising revenues still 14 per cent below what it was before the pandemic. 

That said, industry experts say this segment of the M&E sector has several opportunities to keep up its growth momentum, including focusing on selective audience segments, innovative pricing and diversifying revenue streams.

Prospects Galore

The notable increase in print advertising volumes from 2023 to 2024 confirms print's consistent appeal to marketers for product launches, targeted communication, and brand messaging, shared Subramanian S, SVP-Response, The Times of India Group. Projected trends for 2024 indicate a surge in consumer spending on tangible assets like real estate, cars, and travel and tourism.

“The advertising landscape within the print industry is poised for continued growth in 2024. Fuelled by the robust performance of the Indian economy compared to its global counterparts, we anticipate a rise in both the number of advertisers and advertising expenditures throughout the year,” he added.

The FICCI-EY report also suggests the Print segment can grow to Rs 288 billion by 2026, at a CAGR of 3.4 per cent. Advertising will grow at a 4.7 per cent CAGR, driven by access to increasingly elusive affluent audiences and premium inventory formats. 

Varghese Chandy, VP - Marketing and Advertising Sales, Malayala Manorama, believes though media fragmentation will continue to rise, advertisers will identify the continued improvement in print distribution, and print advertising will find a place in more media plans.

2023 was a year when retail advertising activity was strong, he said. “Retailers vouch for the impact and quick return offered by print advertising. As the number of large format brick and mortar stores grow, the segment will be one the main drivers of print advertising growth.”

Rough Ride

But there have been obstacles too. 2023 witnessed unexpectedly lower ad spends in print during festive seasons, both regionally and nationally. As per experts clash of events like IPL and CWC with festivals could have diverted funds, impacting print revenue during these periods. 

The EY report shows how the rise of digital news consumption impacted Print. There were 456 million digital news consumers in India, of which over 80 per cent consumed news on their mobile phones, the report said.

Some CEOs who were interviewed for the EY-FICCI report said India has started to reach a saturation point, especially in newspaper-reading households, making it challenging to add new subscribers. While at the other end, young audiences entering the workforce have several alternative news sources, and hence may not desire to subscribe to a newspaper as much as they used to a few years ago. 

As per the report, Print players have confirmed that a sizeable portion of their print readers have shifted to their own digital platforms.

Alok Sanwal, CEO, Dainik Jagran-inext Jagran Prakashan, highlighted print will have to be a solution provider now, rather than a space seller. “It is a 70-80-year-old medium and has to do a lot more than its contemporaries to remain relevant. Not just from a marketing perspective but relevance from a content perspective too, print will have to redefine itself,” he said.

The EY report has suggested a few ways to reignite marketers’ interest in the medium.

Alternate revenue streams

The over-dependence on marketing and advertising as the only opportunity to generate revenue will not suffice, Sanwal asserted. The players need to explore other options. 

Newspaper brands could venture into affiliate events businesses such as weddings, sports, government events, ticketing, etc. Events revenues will contribute to top-line growth, particularly in tier-II and III markets, where national mass brands need greater connect. 

Digital efforts should focus on growing app-based audiences as compared to fleeting web-based audiences and reduce the dependence on programmatic advertising by doing more direct deals with advertisers. 

They could also monetise content, including archives, and explore innovative content formats such as short videos, podcasts and curated short films. 

Call for Reinvention

To sustain and further grow print revenues, publications will have to reinvent their strategies and offerings. Print will have to either change or perish, underlined Sanwal. 

While readers have the choice between multiple channels of information, their trust remains highest in newspaper brands. This perception is the biggest differentiator for print publishers, and the print segment needs to get together to build the narrative.

The print segment faces challenges in attracting younger readers, and that can be an existential threat. Continued investment in products (both physical and digital) for young audiences who are entering the workforce will be critical in building the readership habit.

The growth in the readership base growth is critical, and increasing the utility of the newspaper is the answer. This can be achieved in many ways, like providing more local news, more in-depth analysis, coupons and discounts on e-commerce sites, etc. Also, focussing on editorial quality - investing in the newsroom to provide unparalleled insights. Analysis and perspectives from opinion leaders within the community of readers may also help.