Print ad rates likely to be hiked by 26% by Govt post Bihar elections

The central government is likely to announce a 26% increase in advertisement rates for print media, the first major revision since 2019, sources have told e4m. A formal notification is expected to be issued after November 15, once the Model Code of Conduct for the Bihar Assembly elections is lifted.

The move is aimed at supporting traditional media houses amid growing disruption from digital platforms, according to sources. Officials said the move is part of a broader plan to stabilise conventional media sectors like print, radio, and television whose revenues have been hit by the rapid shift to digital formats. The proposed rate hike follows the previous increase in 2019, when the government raised print ad rates by 25%.

The increase in ad rates, industry experts say, is expected to provide a timely financial boost to the print media sector, which continues to face headwinds from digital migration and rising input costs

The Bureau of Outreach and Communication (BOC) recommended the rate revision after a detailed cost analysis of newsprint and operational inputs. The hike will apply to government advertisements placed across newspapers nationwide and is expected to take effect by mid-November.

According to Karan Taurani, EVP at Elara Securities, the government’s proposed 26% hike in print media advertisement rates is positive for DB Corp (DBCL), potentially leading to a 3% overall revenue uplift during FY27–28.

 Taurani noted that advertising accounts for nearly 70% of DB Corp’s total revenue, with print contributing about 64%. Government ads make up 17 to 25% of total ad revenue higher during election periods. Based on the proposed hike, Elara estimates a 4.4% upgrade in print ad revenue and a 3% upgrade in overall revenue.

 It must be mentioned that prior to 2019, rates were revised in 2013 with a 19% increase over 2010 levels. The new hike aims to provide relief to newspapers, particularly small and medium publications, which have been waiting for a revision since 2022.

The ministry has already announced plans to integrate the Press Information Bureau (PIB), Central Bureau of Communication (CBC), and Registrar of Newspapers for India (RNI) to improve coordination across communication, outreach and regulatory functions.

 Meanwhile, for the radio sector, the government is examining ways to remove the regulatory constraints. “We are exploring ways to remove regulatory overhangs and make the environment more conducive for expansion,” a source said.

Similarly, reforms are being considered in the television and DTH segments to improve TRP transparency, expand free dish reach, and make the cost structure more efficient. “A consultation paper on rating reforms has already been completed,” a source added.