Mumbai: The Indian print media industry is poised to record robust growth in 2024, with advertising revenues projected to return to pre-pandemic levels and profit margins improving amid softening of newsprint prices. According to the Pitch Madison Advertising Report 2024, print advertising revenue is anticipated to rise by 7%, reaching ₹20,613 crore this year, surpassing pre-Covid figures in 2019.
The report predicted a 12% increase in total advertising expenditure to ₹1.11 lakh crore. It also noted a consistent increase in print advertising revenue, from ₹16,595 crore in 2021 to ₹18,470 crore in 2022 and ₹19,250 crore in 2023. Newsprint prices, a significant factor in direct variable costs for print media companies, have decreased from over ₹80,000 per metric tonne post-Covid to about ₹50,000 per metric tonne.
‘Print remains resilient’
Madison World Chairman Sam Balsara said print remains resilient in India despite being in terminal decline globally. He also expects print to record rapid growth in 2024. “The global share of print is 4%; India’s share is 20%. That’s phenomenal. In China, the print share is near zero. In the US and UK, it is less than 5%,” the advertising veteran told ET.
“While the share of print is declining, in rupee terms, it has been growing year-on-year. And we expect good growth in 2024 too, higher than the growth achieved last year,” he added.
Sivakumar Sundaram, CEO (Publishing) of Bennett Coleman & Company Limited (BCCL), said print advertising revenue in 2024 is anticipated to reach an all-time high. He also noted that newspapers, with their high credibility, affordability, and daily home delivery, coupled with strong readership habits, serve as a shield against Big Tech challenges.
BCCL is the publisher of The Economic Times.
“Print continues to be a strong evergreen medium for advertisers who are looking to build trust and credibility for their brands. We continue to bring innovation to print advertising, increasing the impact for our advertisers,” Sundaram said.
In July 2023, Crisil predicted a 13-15% revenue growth for Indian print media ,to ₹30,000 crore, this financial year, driven by higher corporate and government ad spending.
‘Strong outlook’
Girish Agarwal, non-executive director at DB Corp noted that the credibility of newspapers, coupled with burgeoning economic activity and growth in tier-II and beyond markets, has translated into improved advertising revenues for Indian-language newspapers.
“We believe that the outlook for the sector remains very strong with the current growth momentum, which is set to increase going forward,” he added. MV Shreyams Kumar, managing director of Mathrubhumi Group said growth estimates projected by media agencies for print are very conservative. “Print is an important medium for brand building. Election year is usually a good year for print,” he noted. Shashi Sinha, CEO, IPG Mediabrands India, predicts strong growth for print in 2024 due to the Lok Sabha elections and new automobile launches, benefiting both English and regional print.
“Credibility plays an important role, especially in an election year. In my personal view, digital is a bit oversold. Auto launches will also help the print medium post strong growth,” he added.
‘Helps Brand Recognition’
“For brand recognition and building trust, print advertising is very effective. It also allows customisation for local/national targeting geographies, reaching diverse masses. Combining digital and print can bring maximum effectiveness to a marketing campaign,” said Devndra Chawla, CEO, GreenCell Mobility, a mass mobility business. In September 2023, ICRA forecasted a 500-600 basis point increase in operating margins in FY24 due to lower newsprint costs and poll-driven ad revenue.
According to Sundaram, BCCL has balanced its portfolio between domestic and international newsprint suppliers to mitigate geopolitical challenges and supply chain disruptions. “This overall downward trend in newsprint prices has indeed had a strong positive impact on the bottom line of print media companies.” Agarwal said DB Corp’s average cost for newsprint fell by 18-20% year-on-year in the last quarter from the high level of ₹64,000 per metric tonne to around ₹48,000 currently, further boosting the company’s Ebitda margins.
“With a further estimated correction of 2-3% in newsprint prices and high base of last year, we expect the benefit to continue in 2024,” he said.
