'DNA' exclusive: DAVP’s rate bonanza for print media

With a view to woo the print media before the 2014 general elections, the government is likely to announce a mega bonanza for the newspaper industry by aligning the DAVP advertisement rate to the market rates.

A working group committee for the 12th plan headed by Rajiv Takru, additional secretary, ministry of information and broadcasting has proposed that the government should think of aligning the print media advertisement rates with market prices.

The decision if implemented will do away with the current practice of paying of 15% commission to agency.

“Internally the I&B ministry had discussed this, and it was proposed that the advertisement rates for the print media should be market linked”, said a senior official in the I&B ministry.

The I&B ministry has also asked for an increased budgetary outlay Rs100 crore per year during the 12th plan as compared to Rs87 crore in the year 2011-12.

“We need to have higher budget to carry out various campaigns for promoting government schemes in the media. That is why there is a need of higher budgetary allocation”, added the official.

According to government figures, the print media industry had an estimated size Rs64,600 crore in 2010 and has a growth rate of 1-10% per annum. By 2015, the size of the industry is likely to reach Rs 1,19,900 crore, at an average growth rate of 13.20% . The advertisement revenue accounts for almost 76% of the total revenue for the print media, while the remaining amount is generated through subscription income.