The head of the Indonesian Advertising Companies Association (Persatuan Perusahaan Periklanan Indonesia or P3I), Harris Thajeb, said that corporate advertising spending has accounted for the bulk of this year's spending. Next year, it is expected to remain stagnant. Growth in advertising spending in 2014 is expected to be supported by the government and political parties. The private sector will probably be less enthusiastic to advertise during election campaigns as they do not want to mix their advertisement with political adds. Political parties will mostly use newspapers, television and digital media for their campaigns.

Sectors that contributed most to advertising spending in Indonesia in 2013 were telecommunication, fast moving consumer goods and banking. The most popular medium to advertise remains television. According to research conducted by the Nielsen Company, in the first half of 2013, 68 percent of total advertising spending went to television, followed by newspapers (30 percent) and magazines/tabloids (2 percent). A number of products that contributed significantly to the increase of advertising spending on television were hair care products (which grew 21 percent to IDR 2.2 trillion), telecommunication (which grew 20 percent to IDR 1.6 trillion), coffee and tea (which grew 144 percent to IDR 1.6 trillion), and clove cigarettes (which rose 53 percent to IDR 1.6 trillion).

  Advertisement Spending
Growth (%)
Semester I-2009         IDR 22.06 trillion         -
Semester I-2010         IDR 28.50 trillion       29.2
Semester I-2011         IDR 33.45 trillion       17.4
Semester I-2012         IDR 40.92 trillion       22.3
Semester I-2013         IDR 51.16 trillion       25.0

Source: Nielsen Company

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