Advertising revenue of INS members up 17% to Rs 12,268 crore in 2021
Accredited advertising agencies are most dominant source of advertising revenue, according to INS annual report
The Indian Newspaper Society (INS) members have reported a total advertising business of Rs 12,268.03 crores for the calendar year 2021, up by 17.30% as against Rs10,458.28 crores in 2020. The INS, in its annual report for the year 2020- 21, has mentioned that amongst the various sources of advertising revenue, accredited advertising agencies continued to dominate.
“One of the key functions performed by the society is to provide assistance to member publications with regard to monitoring the recovery of their dues from accredited advertising agencies and advertisers. Advertisements are the major source of revenue for the newspapers and periodicals and, therefore, critical in terms of the business plans for most publications,” said INS in the report.
Ad business from accredited advertising agencies was up by 31.93% to Rs 6490.04 crore in 2021 against Rs 4919.13 crore in 2020. Business from non-accredited agencies grew 4.28% in 2021 to Rs 2152.02 crore against Rs 2063.70 crore in 2020. Direct ad revenue was up by 15.93% to Rs 2021.92 crore against Rs1744.07 crore in 2020.
Revenue from BOC (erstwhile DAVP) was down by 10.08% to Rs 75.05 crore against Rs 83.46 crore in 2020. Railways revenues dropped by 31.66% to Rs 4.49 crore against Rs 6.57crore. State government revenue also shrunk by 3.74% to Rs 765.33 against Rs 795.04 in 2020. Public Sector Undertaking spent Rs 53.78 in 2021, up by 48.73% from Rs 36.16 crore in 2020. State Public Sector Undertakings spent Rs 157.18 crore against Rs 144.17 crore, whereas Tender Advertisement spends dropped by 17.68% to Rs 548.22 crore against Rs 665.99 crore.
Also, 205 members reported in 2021 as compared to 238 members in 2020.
INS said that the distribution of business from accredited agencies was dominated by Indian language dailies which accounted for 58.00% share. English dailies accounted for 41.04% share.
This year, English dailies saw an increase of 32.26% in business from accredited agencies to Rs 2663.33 crore against Rs 2013.70 crore in 2020. English periodicals saw an increase of 19.71% to Rs 40.76 crore in 2021 against Rs 34.05 crore in 2020. Indian language daily and Indian language periodicals saw an increase of 31.85% and 32.87%, respectively.
During the financial year ending March 31, 2022, the society’s membership stood at 746, while 19 publications ceased to be members.
The annual report shared that the efficiency of the INS credit monitoring system is reflected in the extent of debts written off over the past five years, which remained well below 1%.
“Over the five-year period, the aggregate write-off in relation to volume of business, at 0.19%, is considered a creditable performance in the Indian market. The write-offs represent the excess of outstanding dues from advertising agencies over the collateral (bank guarantees/security deposits) encashed prior to the cancellation of an agency’s accreditation on the grounds of unsatisfactory payment record. The success of INS in controlling the levels of write-off is the result of the progressive tightening of benchmarks for monitoring of agencies, growing accuracy in interpreting warning signals based on the payment records of agencies, and enhancing the collateral requirements,” reads the annual report.
INS also mentioned that it is true that advertising agencies themselves often have problems with recovering their dues from their clients. While the society insists that agencies are obliged to pay their dues to members notwithstanding non-recoveries from their advertisers, it does assist the agencies, in deserving cases, by suspending the advertisements of the defaulting advertisers in the publications of the members, in terms of the provisions of its Accreditation Rules, when the bona fides of the agency concerned have been established and it has cleared the dues of the publications.
“The implementation of this measure has helped many agencies in recovery of dues from recalcitrant clients. During the year, the society has issued two advisories against the advertisers. During the year two of earlier advisories were subsequently withdrawn on account of settlement reached between the parties.”
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