Digital onslaught: Can IRS be the saviour for Print?
Many newspapers have either reduced their circulation or shut some editions to improve profitability. Publishers hope advertisers would invest more once the IRS returns
As the Media Research Users Council (MRUC) India plans to restart the Indian Readership Survey (IRS) after a gap of five years, publishers are optimistic that the return of the survey could help them to improve their ad revenue and give the print industry a fillip.
In a landscape increasingly dominated by digital platforms, print media houses are facing mounting pressures to adapt. Several newspapers have reduced their circulation by 15-20 percent and closed loss-making editions in a bid to enhance profitability, industry insiders say.
Although there has been a recent uptick in the print ad revenue, it is largely attributed to falling ad rates rather than an increase in overall marketing spend of brands.
Industry veterans suggest that credible and updated readership data could encourage advertisers, who are increasingly investing in digital platforms, to allocate more of their budgets to print ads.
“The IRS holds the promise of providing much-needed clarity on print media consumption. It would surely be instrumental in reviving advertisers’ interest in print,” a top leader from a leading English daily told e4m.
Print media, despite its enduring relevance, currently captures only 20% of India's advertising spend, a stark contrast to the 44% commanded by digital platforms and 32% by television.
The latest EY-FICCI Media & Entertainment report highlights that while print media is on a recovery path post Covid—with newspapers and magazines experiencing modest growth—the sector has not yet regained its pre-pandemic revenue levels. Advertising revenues remain 14% below pre-pandemic figures, although there has been a notable increase from Rs 16,595 crore in 2021 to Rs 19,250 crore in 2023, stated the report.
The year 2023 saw lower ad spends during festive seasons, with major events like the IPL and CWC potentially diverting advertising budgets away from print, experts say.
Furthermore, the rise of digital news consumption, with 456 million digital news consumers in India and over 80% accessing news via mobile phones, has impacted print media. Many print readers have shifted to digital platforms, making it challenging to attract new subscribers in a market approaching saturation.
Advertisers want IRS back
According to media buyers, major advertisers in sectors such as auto, BFSI, real estate, retail, consumer durables, and FMCG continue to view print as a vital component of their media strategy mainly because of print media’s credibility and the trust it builds with consumers.
“This trust and the tangible nature of print contribute to better information retention which remains crucial for brands,” says a media buyer.
However, in the absence of proper readership data, they have no other option but to make choices based on intuition, surrogate surveys, feedback of dealers/media buyers and Audit Bureau of Circulations data, among others. Some brands still consider 2019 IRS data before deciding the ad rates and investment, media buyers told e4m.
Pelki Tshering, CMO, Tanishq, told e4m, “All advertisers need updated and realistic IRS data to navigate the validation and consumption of readership for planning, leading to the valuation of ad rates.”
Tanishq currently conducts surrogate surveys on the newspapers’ website to get a broader idea about the papers’ readership, Tshering said.
However, brands largely say that it's impossible to stop the digital onslaught as consumers who have already shifted to digital platforms will not return to print media.
“Most of the print consumers are millennials and above only. This segment is important for us but our ad spend towards digital will continue to grow as the younger population who spends more is there. Print has to work hard in terms of innovation to retain its advertisers,” said the CMO of an FMCG brand.
“In June this year, Swiggy Instamart came up with a mango-scented front-page newspaper ad which featured vivid visuals of mangoes and a copy that stated, ‘Read this ad with your nose’. It went viral leading to a lot of discussion and conversions as well,” reminds a media buyer.
IRS will help advertisers & publishers both: INS chief
Rakesh Sharma, President of Indian Newspapers Society, however, insists that print advertising and digital media advertising are two different issues. “Rise in digital advertising is not linked to print advertising.”
Explaining the nuances of IRS, Sharma says, “The IRS helps to understand the reach of newspapers, how many copies are circulated in particular areas, how many multiples of readers they have, readers’ socio-economic status among others. The survey is an essential tool for advertisers to optimize their print investment.”
“At the same time, the IRS will also help publishers to understand their readership better. It is quite possible that readership of a newspaper has gone up despite a reduction in circulation. Since the IRS, which is the only currency for print measurement in India, was stuck for five years, publishers are also clueless about actual readership. The fresh data would provide them better bargaining power.”
