Print industry sees 2% decline in ad volume in 2018: TAM data

Industry players attribute this slump to several factors, including the after-effects of demonetization and GST.

The print industry, it seems, is still reeling under the impact of the double blow of demonetization and GST. According to TAM Media Research data, the ad volume across print industry witnessed a decline of 2 per cent in January-June 2018 as compared to January-June 2017.

The figure represents the combined indexed growth in top 10 advertising categories for the period of January-June 2018. These categories are: two-wheeler, car/jeep, coaching/competitive exam centre, multiple courses, real estate, hospital/clinic, retail outlet-electronics, school, retail outlet-clothing and retail outlet-jewellers. 

Industry players attribute this slump to several factors, including the after-effects of demonetization and GST. The figure represents the combined indexed growth in top 10 advertising categories for the period of January-June 2018. These categories are: two-wheeler, car/jeep, coaching/competitive exam centre, multiple courses, real estate, hospital/clinic, retail outlet-electronics, school, retail outlet-clothing and retail outlet-jewellers.



Industry players attribute this slump to several factors, including the after-effects of demonetization and GST.

“There is no denying the fact that overall volumes were affected. This happened due to multiple factors, including the after-effects of demonetization and GST, coupled with an overall macroeconomic and other seasonal trends. Brands were cautious in their marketing plans with regard to campaigns and preferred to focus on specific customer-led topical initiatives, which led to reduced budgets for the print,” says PM Balakrishna, Business Head- National Accounts, The Hindu.

However, Balakrishna believes that H2 should rebound strongly with overall macroeconomic sentiment picking up and most companies now seeing the benefits of GST compliance.
“Companies are now planning to unveil their launches and brand campaigns and print will be a very critical medium to boost sales and customer awareness for these campaigns. Print has always been the preferred medium for offers and schemes during the festive period. And with the festive window being slightly larger this time compared to last year, the industry is expected to see a much more buoyant quarter and year ahead,” he says.

An industry observer expressed similar thoughts. “January- June 2017 was immediately post demonetization and companies were holding their budgets. Advertisers had become more conscious about their spends and had started spending more on TV and digital to reach maximum number of people. Print also gives you reach, but it is far more expensive than other mediums. Print is very important for a strategic advertising,” said the observer, who did not wished to be named.

As per the recent KPMG report, the print sector witnessed a significant adverse impact due to the after effects of demonetization, coupled with a weak advertising demand due to implementation of GST and RERA. This resulted in a growth rate of 3.4 per cent during FY18, which was the lowest in a decade.

Talking about the ad volumes, a senior executive from HT Media said, “The print industry is going through a difficult phase. Newsprint price hike has also hit us badly.”

In the list of top 10 categories, car/ jeep segment has seen a dip of 14 per cent, while the coaching segment has grown by 6 per cent.

Vinita Shah, Head-Marketing, Business Development & Analytics for TAM Axis and TAM Sports, explained, “If you compare the top 10 categories of January-June 2017 with January-June 2018, there is not much difference. Also, the storyline gets different when festival season starts. You will see more retail advertising coming in.” For more updates, be socially connected with us on
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