NEW DELHI: The Union Information and Broadcasting Ministry on Friday announced a 10 per cent increase in the rates of advertisements released through the Directorate of Advertising and Visual Publicity (DAVP).
The 10 per cent increase coupled with the waiver of 15 per cent agency commission on DAVP advertisements will add up to a 25 per cent increase in earnings, Union Minister of State for Information & Broadcasting Anand Sharma said here, while announcing this component of the media package.
However, the 10 per cent increase to be paid as a separate element and designated as ‘special relief’ will be available only to those media establishments which can show documentary proof of loss of revenue in non-governmental advertisements as compared to the same period last year. Both these relaxations will be valid only till June 30 before which the situation would be reviewed yet again. This revision has been done in keeping with a demand from the captains of the media industry which has also been affected by the global meltdown. Media heads had met the Minister to draw his attention to the loss of advertisement revenue as a result of the slowdown because of which many companies had stopped advertising.
“When captains of industry approached us, we said yes we will try to do something but you should in turn ensure that there are no lay-offs,” the Minister said in a bid to drive home the fact that the DAVP rate increase would benefit the entire media including journalists.