If we consider the actual cost of printing a newspaper daily, it would total up to approximately Rs 80-100 per copy, which would include costs of printing, reporting, editing and circulation. This is practically beyond the reach of many citizens to afford on a daily basis. But in the present situation we get these dailies at a nominal cost of Rs 4-5 per copy. This is majorly made possible with the inclusion of advertisements in newspapers. These subsidise the cost and newspapers get available at a lesser rate. Ads in the paper are colour display or classified ads, which are primarily text ads, and might have some photographs.
An advertising department for a newspaper organisation is responsible for generating revenue for the business by selling advertising space to local or national organizations. It accepts and processes orders from advertisers, to book space in the newspapers, as well as create ads. Statistics and information about the circulation and readership of the newspaper are carried out through research work. This department also works along with the editorial teams to develop features that will attract advertisers or help clients place their products.
Advertising contributes 75-80 percent of the total revenue. Statistics say that local retail advertising is a significant source of newspaper’s income, accounting for about 50 percent of all revenue. Classified ads come next with 40 percent, followed by national ads and preprinted inserts. In most countries, newspaper industry cannot stand without government ads being the major source of income.
The advertising department of the newspaper also publishes a rate card for advertising space, which is based on the circulation of the newspaper and its frequency as well as the profile of its readers. The rate card has a pricing based on sizes of ads, along with discounts and multiple booking offers across editions.