INS members report 41.29% drop in advertising revenue to Rs 10,458.28 crore in 2020

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The Indian Newspaper Society (INS) has revealed that its members reported a 41.29% drop in advertising revenue to Rs 10,458.28 crore in 2020 from Rs 17,815.88 crore in 2019 due to the pandemic. For the fiscal year ended March 31, the membership of the company stood at 716. Membership includes all major print media houses like Times of India Group, HT Media, DB Corp, Jagran Prakashan, Lokmat, ABP Group and Malayala Manorama.

“For calendar year 2020, INS members reported total advertising activity of Rs 10,458.28 crore, compared to Rs 17,815.88 crore in 2019,” INS said in its annual report. for fiscal year 21. Among the various sources of advertising revenue, accredited advertising agencies continued to dominate the advertising activities of INS members.

He further stated that the business distribution of accredited agencies was dominated by Indian language dailies which accounted for 58.04% of total activity, with English dailies accounting for 40.94%.

Advertising activities of accredited advertising agencies fell 46% to Rs 4,919.13 crore from Rs 9,059.60 crore. In the case of non-accredited agencies, advertising activity fell 43.48% to Rs 2,063.7 from Rs 3,651.41 crore. Direct advertising revenue from INS affiliated publishers fell 42% to Rs 1,744.07 crore from Rs 3,008.94 crore.

Government advertising revenue from the Bureau of Outreach and Communication (BOC) fell 57% to Rs 83.46 crore from Rs 194.10 crore. State government advertising revenues fell 9% to Rs 795.04 crore from Rs 869.80 crore. State-owned public sector companies spent Rs 144.17 crore on INS affiliated publishers, which is a drop of 31% from Rs 207.72 crore in 2019. Advertising for INS tenders fell 16% to Rs 665.99 crore from Rs 729.99 crore.

The English dailies recorded a 48% drop in the activities of accredited agencies to Rs 2013.70 crore against Rs 3836.23 crore. Indian-language dailies recorded a 44.18% drop in revenue from accredited agencies to Rs 2,854.95 crore, from Rs 5,114.98 crore.

During the period under review, English and language periodicals saw a 46% and 64% reduction in the activities of accredited agencies to Rs 34.05 crore and Rs 16.43 crore respectively.

One of the essential missions of the INS is to assist member publications in monitoring the recovery of their contributions from advertising agencies and advertisers. Ads are the main source of income for newspapers and periodicals and therefore are essential in terms of business plans for most publications. INS is the only industry association in India that actually manages an essential part of its members’ activities – the management of its claims on advertising sales,

“The effectiveness of the INS credit monitoring system is also reflected in the scale of debts written off over the past five years which have remained well below 1%. 0.17% is considered a commendable performance in the Indian market. Write-offs represent the excess of unpaid dues from advertising agencies over collateral (bank guarantees / security deposits) cashed before the cancellation of accreditation from an agency for record unsatisfactory payment pattern, ”the company said.

The INS said that while insisting that agencies are obligated to pay their membership dues notwithstanding non-collections from their advertisers, it helps agencies, in deserving cases, by suspending advertisements from defaulting advertisers in members’ publications, in accordance with the provisions of its Accreditation Regulations, when the good faith of the agency concerned has been established and it has paid the publication fees.

He added that the implementation of this measure has helped many agencies in collecting dues from recalcitrant clients. During the year, the Company issued two opinions against advertisers.

During the fiscal year ended March 31, 2021, 65 publications ceased to be members.

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