Strong outlook: Indian print media industry is poised to record robust growth in 2024

Mumbai: The Indian print media trade is poised to document sturdy development in 2024, with promoting revenues projected to return to pre-pandemic ranges and revenue margins bettering amid softening of newsprint costs. Based on the Pitch Madison Promoting Report 2024, print promoting income is anticipated to rise by 7%, reaching ₹20,613 crore this 12 months, surpassing pre-Covid figures in 2019.

The report predicted a 12% enhance in complete promoting expenditure to ₹1.11 lakh crore. It additionally famous a constant enhance in print promoting income, from ₹16,595 crore in 2021 to ₹18,470 crore in 2022 and ₹19,250 crore in 2023. Newsprint costs, a big consider direct variable prices for print media corporations, have decreased from over ₹80,000 per metric tonne post-Covid to about ₹50,000 per metric tonne.

This Year, The News Augurs Well for Indian Print Media

‘Print stays resilient’

Madison World Chairman Sam Balsara stated print stays resilient in India regardless of being in terminal decline globally. He additionally expects print to document fast development in 2024. “The worldwide share of print is 4%; India’s share is 20%. That is phenomenal. In China, the print share is close to zero. Within the US and UK, it’s lower than 5%,” the promoting veteran informed ET.

“Whereas the share of print is declining, in rupee phrases, it has been rising year-on-year. And we count on good development in 2024 too, larger than the expansion achieved final 12 months,” he added. Sivakumar Sundaram, CEO (Publishing) of Bennett Coleman & Firm Restricted (BCCL), stated print promoting income in 2024 is anticipated to succeed in an all-time excessive. He additionally famous that newspapers, with their excessive credibility, affordability, and every day residence supply, coupled with robust readership habits, function a protect in opposition to Large Tech challenges. BCCL is the writer of The Financial Instances.

“Print continues to be a robust evergreen medium for advertisers who wish to construct belief and credibility for his or her manufacturers. We proceed to deliver innovation to print promoting, growing the impression for our advertisers,” Sundaram stated.

In July 2023, Crisil predicted a 13-15% income development for Indian print media ,to ₹30,000 crore, this monetary 12 months, pushed by larger company and authorities advert spending.

‘robust outlook’

Girish Agarwal, non-executive director at DB Corp famous that the credibility of newspapers, coupled with burgeoning financial exercise and development in tier-II and past markets, has translated into improved promoting revenues for Indian-language newspapers.

“We imagine that the outlook for the sector stays very robust with the present development momentum, which is about to extend going ahead,” he added. MV Shreyams Kumar, managing director of Mathrubhumi Group stated development estimates projected by media companies for print are very conservative. “Print is a vital medium for model constructing. Election 12 months is normally a very good 12 months for print,” he famous. Shashi Singh, CEO, IPG Mediabrands India, predicts robust development for print in 2024 as a result of Lok Sabha elections and new vehicle launches, benefiting each English and regional print.

“Credibility performs an necessary function, particularly in an election 12 months. In my private view, digital is a bit oversold. Auto launches will even assist the print medium publish robust development,” he added.

‘Helps Model Recognition’

“For model recognition and constructing belief, print promoting could be very efficient. It additionally permits customisation for native/nationwide concentrating on geographies, reaching numerous lots. Combining digital and print can deliver most effectiveness to a advertising marketing campaign,” stated Devndra Chawla, CEO, GreenCell Mobility, a mass mobility enterprise. In September 2023, ICRA forecasted a 500-600 foundation level enhance in working margins in FY24 on account of decrease newsprint prices and poll-driven advert income.

Based on Sundaram, BCCL has balanced its portfolio between home and worldwide newsprint suppliers to mitigate geopolitical challenges and provide chain disruptions. “This total downward development in newsprint costs has certainly had a robust optimistic impression on the underside line of print media corporations.” Agarwal stated DB Corp’s common value for newsprint fell by 18-20% year-on-year within the final quarter from the excessive stage of ₹64,000 per metric tonne to round ₹48,000 at the moment, additional boosting the corporate’s Ebitda margins.

“With an additional estimated correction of 2-3% in newsprint costs and excessive base of final 12 months, we count on the profit to proceed in 2024,” he stated.

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