Why’s DAVP revenue losing its appeal among Print players  

Government advertising routed through the Directorate of Advertising and Visual Publicity (DAVP) is increasingly losing its sheen as a revenue stream for print players. We asked publishers why, and while the answers were fairly straightforward, the industry heads also explained why the reason behind this dip has its complexities too. 

DAVP ad rates are directly linked to certified circulation numbers and the inability of most newspapers to reclaim their pre-COVID readership has led to diminishing returns from this category of ads. And what’s worrying the industry is the increasing gap between circulation expectations and the ground reality.

Print circulation in India was severely disrupted during the pandemic due to lockdowns, distribution barriers and consumer hesitancy toward physical newspapers. Though several publications launched or scaled up their digital offerings, the Print Media Advertisement Policy has stuck to physical circulation figures. This has pushed many newspapers into lower rate brackets for government ads.

The Story in Numbers

Explaining further is Manoj Singh, Vice President at Madison Media: “DAVP advertisement rates are structured around a publication’s certified circulation under the Print Media Advertisement Policy. Higher circulation qualifies for better slabs, including premiums for front-page or back-page placements. But since the pandemic, most publications have not recovered their pre-COVID distribution volumes and this directly impacts their DAVP earnings.”

For publications that previously reported more than 75,000 copies in circulation, slipping below that benchmark has meant reduced eligibility and lower revenues.

According to financial reports, Jagran Prakashan reported Rs 338.02 crore in circulation revenue for FY25 compared to Rs 359.01 crore the year before. HT Media saw a decline of 10.6 per cent with Rs 211 crore in FY25 down from Rs 236 crore in FY24. Meanwhile, DB Corp reported Rs 473.4 crore this year versus Rs 479.1 crore in FY24.

‘The Model Is Different’ 

A senior executive from the print media industry, requesting anonymity, offered additional perspective. “The government is incidentally the largest advertiser,” the executive said. “But it doesn’t operate the way commercial advertisers do. There’s a different principle altogether when it comes to DAVP.”

According to the executive, DAVP sets advertising rates based on circulation figures, not readership. “Commercial clients like Unilever, P&G, and the rest look at readership. They give us a rate based on the number of people reading our publication. But the government, through DAVP, gives us rates based on the number of copies we print called certified circulation.”

He called the model “different” rather than directly calling it flawed but noted the disparity. “To each his own. There’s a correlation of more copies, more readers but it’s still not exactly the same. Yet that’s how it works. The government has chosen to operate basis certified copies. The DAVP rates are decided by a central body within the ministry.”

He clarified that contrary to popular belief, there isn’t a uniform base rate across publications. “No, it’s not one-size-fits-all. There’s no standard rate card. The rates vary across publications because they’re tied to certified circulation.”

He further explained, “Let’s say DAVP fixes a standard rate of Rs X per copy, then your total ad rate depends on how many certified copies you have. So if your copies go up in the next six months, your rate goes up too. And if they come down, your rate is revised downwards.”

This circulation-based structure makes publishers especially sensitive to fluctuations in physical distribution. “Rates are supposed to be revised every six months. For us and for most print players, ad rates fell post-COVID. That’s because our circulation fell drastically when the pandemic hit.”

He noted that while the sector has seen recovery since then, most newspapers are still clawing their way back to pre-COVID circulation levels.

Market Dynamics

In Delhi, Hindustan Times commands one of the higher DAVP rates among English dailies in the dataset, charging Rs 307.70 per unit with a reported circulation of over 6.49 lakh copies. In contrast, its Mumbai edition carries a significantly lower rate of Rs 104.16, corresponding to a circulation of about 2.19 lakh. This gap reflects differing market dynamics between the two metros, including brand positioning, readership habits and regional influence.

The Times of India maintains relatively consistent numbers across both cities, with its Delhi edition priced at Rs 263.13 for 5.55 lakh copies, and its Mumbai edition slightly lower at Rs 259.99 for a comparable 5.48 lakh circulation. The similarity in reach and pricing indicates a strong national footprint that appeals to advertisers looking for pan-India exposure.

The Indian Express is among the more affordable English dailies listed, with its Delhi edition priced at Rs 56.23 for a circulation of 1.18 lakh. In Mumbai, the paper is even more cost-effective, charging Rs 47.39 with a readership base of approximately 91,800. These lower rates may appeal to advertisers aiming for niche urban readerships at controlled budgets.

Audit & Rates

One major factor contributing to declining DAVP earnings is the audit requirement. Varghese Chandy, Vice President of Marketing and Advertising Sales at Malayalam Manorama, said, “ABC is the final authority for print media circulation audit. During the COVID period ABC gave exemptions to member publications to skip a few circulation audit periods. However, DAVP does not allow this. If publications miss a six-monthly period for publications with more than 25,000 copies, DAVP straight away brings down the rates based on a circulation of 25,000 copies.”

Chandy noted that this policy adversely affects larger publications with far higher actual distribution. As an alternative some publishers have turned to the Registrar of Newspapers for India, which conducts audits annually. “Another currency which DAVP accepts is RNI audit figures and publishers are trying to get RNI audit which is an annual audit compared to ABC which is a six-monthly audit,” he said.

Chandy also pointed out that even under normal circumstances DAVP advertising has never been a high-revenue proposition. “DAVP rates were never lucrative for the publishers. It is less than a quarter of the commercial card rates and sometimes even one-tenth. DAVP rates are fixed by the government to communicate the welfare measures of the Government of India. Unfortunately, it is now used to even advertise the profit-making public sector companies.”

Singh added that in some cases publishers have opted out of ABC certification altogether to avoid disclosing steep circulation drops. While this may preserve perception among some advertisers it can lead to disqualification or reduced earnings from DAVP which relies heavily on audited data.

Recovery Measures 

In response to the ongoing challenges publishers are rolling out various circulation-boosting measures. “All publications are making efforts to surpass the pre-COVID numbers and are having multiple promotional schemes,” said Chandy. These include aggressive pricing bundled subscription models and print-digital packages aimed at bringing back lapsed readers.

Singh said publishers must focus on building hybrid models to align with changing consumption patterns. “Investing in digital subscriptions e-papers and paywall strategies while also improving physical distribution can help. Publications should also strengthen local delivery especially in rural areas where DAVP campaigns are more active,” he said.

Stressing the importance of data transparency, Singh noted, “Transparent certified circulation remains critical. Without reliable ABC or RNI data advertisers and the government will question credibility. We advise all print partners to resume regular certifications even if numbers are lower.”

Chandy acknowledged a more long-term hurdle in the form of shifting audience habits. “Challenges are primarily the youngsters who are spending all their time over social media. Publishers are focusing on this target group and are running campaigns addressing this TG. The problem of fake news in digital platforms is being communicated and that print is the most credible medium,” he said.

Thus, the verdict has been unanimous - until publications can win back younger readers, restore certified circulation levels and justify higher DAVP slabs, government advertising will continue to offer limited returns for the Indian print industry.