The Government has decided to hike the Directorate of Advertising and Visual Publicity (DAVP) ad rates. Sources familiar with the situation inform that the DAVP ad rates are expected to increase by another 10-15 per cent. Also, the Government has accepted the request of the print industry players to waive off the 15 per cent commission that was given on the ads. In essence, this would mean a 25-30 per cent increase in DAVP ad rates.
It is learnt that these discussions have been on for some time now, considering the effect of the economic slowdown on the print industry, and that a favourable decision on this has finally been taken. Even as no official comments were available at the time of filing the report, sources familiar with the development have confirmed that an official announcement on this would be made soon.
It may be recalled that late last year, the Ministry of Information and Broadcasting had announced enhancement of the existing rates for the DAVP advertisements by 24 per cent, applicable for the advertisements released on or after September 1, 2008. This implies that since October 2008 to now, there has been almost a 50 per cent increase in the DAVP ad rates. There are more than 4,000 newspapers that are registered with the DAVP, who will benefit from this decision.
DAVP increases ad rates by 24 pc; rate structure committee to be set up