Advertising Spending Reaches IDR 82.1 T

Advertising Spending Reaches IDR 82.1 T

Advertising spending on television and print media in the period from January to July 2017 reached IDR 82.1 trillion, growing six percent over the same period last year. This growth is apparent because it is more affected by the increase in advertising rates.

Hellen Katherina, Executive Director of Media Nielsen Indonesia, said that the product categories that boost the growth of TV and print media commercials are telecommunications and online services, growing 32 percent and 31 percent amounting to IDR 3.7 trillion and IDR 3.2 trillion respectively. “Growth in the telecommunication is heavily influenced by Vivo Smartphone’s advertising spending which increased 59 times from IDR 462.4 billion last year,” said Hellen.

Samsung is in the second place with IDR 372.1 billion, growing 14 times from 2016’s. In online services, the three largest advertisers are Traveloka, Agoda, and Shopee. “The consumer lifestyle that is increasingly leading to digital affects the tight competition of telecommunication service providers and online services, especially e-commerce so they are intensively promoting in the media,” said Hellen.

On the other hand, some product categories reduce advertising spending significantly. Kretek cigarette fell 28 percent or IDR 1.1 trillion to IDR 2.8 trillion, as well as traditional medicine by 50 percent or IDR 404 billion.

Based on the type of media, advertising spending on television is still dominating with a contribution of IDR 65.1 trillion, followed by newspaper amounting to IDR 15.6 trillion. Radio advertising spending in the period from January to July 2017 reached IDR 811.6 billion, exceeding magazines and tabloids of IDR 686.6 billion.

Nielsen Advertising Information Services was released based on monitoring of 15 national television, 98 newspapers, 120 magazines and tabloids, and 104 radio stations. Ad spending value is calculated based on gross rate card without discount, bonus or promo. (*)

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