It is well known
that most of the big newspapers and magazine run on advertisements.
Advertisement is the sole ladder for a newspaper or a magazine to earn high
revenues. 80% of the newspaper industry is supported by advertisements, which
led to the fall of dying industry.
During the period,
as the advertisers decided to cut short their expenditure, the print industry
was impacted. English biggies like Times of India and several other regional
newspapers, which were already struggling were impacted further. The newspapers
saw a gradual decrease in the number of pages everyday during that period. The
profit for that period went down by around 3-5%.
The local hawkers
and vendors, which highly dealt in cash transactions were also hit, but
charging a miniscule amount for the papers, did not affect them badly. The main
affected were the newspaper companies which fell short of revenues through
advertisements and subscriptions.
Around 20-25% of the
ad expenditure went down, which continued for the next five months. The
subscriptions were also hit, however the revenues came back in a short span of
Priyank Mathur, GM
of TOI Branding explains that, “The print industry is based on advertising
which is based on business. If the businesses were not working at that time,
the advertisements went down. The marketing budgets were impacted that time. As
soon as the cash flow stops, the businesses control their expenses, as they know
the consumer is anyways not going to come to them.”
According to exchange4media, the period post- Diwali is
considered to be a dull period, where usually people and the companies spend
less. This trend has been observed for the last 15-20 years. So, the Print was
affected by this period in addition to the demonetization, sucking up the
revenues for them.
Print Industry has
its ads categorized like Real Estate, Automobiles, FMCG, Banks and others.
During Demonetization, it was seen that Real Estate ads were the least
affected. However, after the RERA act, real estate ads were affected and they
went down subsequently.
Leaving the real
estate ads behind, also Digital Payment systems like Paytm, JIO money and
Mobikwik jacked up their advertisement spends and every other day in November
or December, you could spot a huge one page or a jacket ad for the digital
Priyank Mathur adds
that, “The revival for print was moderate as it was the last to recover after
Film, Advertisements and TV. We saw the revival in some 3-4 months and now we
are trying to shift our operations to digital payments as soon as possible.
However, traditional advertising still has a larger share in the advertisement
market, that’s why we have our revenues well.”