Festive Advertising Demand Fails to Improve Publishers' Pricing Power

India's newspaper publishers are facing difficulties implementing a proposed 15% advertising surcharge despite increased advertising activity during the festive season. The Indian Newspaper Society (INS) had recommended the surcharge from August 1, 2026, to help publishers manage rising operational expenses.

However, advertiser resistance and intense competition have prevented most publishers from implementing the recommended increase.

The festive quarter is particularly important for the print industry, contributing approximately 40–45% of publishers' annual advertising revenue. Despite higher bookings around Dussehra, Diwali and the broader festive shopping season, publishers are finding it difficult to convert increased demand into better advertising rates.

Advertisers Resist Uniform Rate Increases

Advertisers and media planners argue that a standardised increase does not account for differences in circulation, readership profiles, audience quality and commercial positioning across publications.

Brands increasingly evaluate advertising investments based on the value and audience reach a publication can deliver.

Advertisers also negotiate discounts, bundled packages and premium placements depending on campaign requirements. As a result, publishers cannot automatically translate higher seasonal demand into stronger pricing.

Mohit Jain, Chief Operating Officer and Board Member of Bennett, Coleman and Co. Ltd (Times of India Group), said publishers have not yet been able to demand the proposed 15% surcharge, despite rising newsprint and freight costs.

Former INS chief and Mathrubhumi Managing Director M. V. Shreyams Kumar also highlighted the difficulty of implementing the increase, noting that advertisers traditionally seek substantial festive-season discounts.

Rising Costs Put Pressure on Newspaper Publishers

The proposed surcharge is intended to help publishers manage increasing operating expenses.

Imported newsprint prices have risen by approximately 10% over the past year, adding pressure to production costs. Freight expenses, geopolitical uncertainty and currency fluctuations have further affected the industry's cost structure.

India also depends heavily on imported newsprint, with nearly two-thirds of its consumption sourced from overseas.

These rising expenses have made it increasingly important for publishers to improve advertising revenue and protect their operating margins.

However, advertisers remain cautious about accepting higher rates without clear evidence of additional value.

Print Advertising Growth Remains Slower Than the Overall Market

According to the Pitch Madison Advertising Report, print advertising grew 3% to ₹20,866 crore in 2025, compared with ₹20,272 crore in 2024.

Despite the increase in advertising expenditure, print's share of total advertising spending declined from 19% to 18%.

The figures indicate that print advertising continues to grow in absolute terms but is losing a portion of the overall advertising market.

For publishers, this creates an additional challenge. Generating higher revenue through increased advertising volume is different from improving advertising yields through stronger rates.

INS Says Some Publishers Have Partially Implemented the Surcharge

Karan Darda, CEO of Lokmat Media and Chairman of the INS, clarified that the 15% surcharge is advisory rather than mandatory.

He said some publishers, including Dainik Bhaskar and Lokmat, have managed to implement the surcharge partially with a limited number of advertisers.

According to Darda, the automobile sector has shown greater acceptance of the increase. He also highlighted the continuing importance of newspaper credibility and reader trust in attracting advertisers.

However, some publishers indicated that the increases secured through negotiations have generally been around 2–4% compared with the rest of the season.

Festive Season Becomes a Test for Print Advertising Revenue

The festive quarter will be an important indicator of the print industry's ability to strengthen its commercial position.

Higher advertising bookings may help publishers improve revenue volumes, but maintaining stronger advertising rates remains a separate challenge.

Publishers must balance the need to recover rising costs against advertiser expectations, competitive pricing and the risk of losing campaigns to other publications or media channels.

Ultimately, the success of the festive advertising season will depend not only on the number of campaigns booked but also on whether publishers can convert that demand into better advertising yields.