Advertisement Spending in Indonesian Media Grows 25% in First Half 2013
Spending on advertisement in Indonesia's media in the first six months of 2013 has grown 25 percent to IDR 51.16 trillion (USD $4.65 billion) compared to the same period last year. This sharp increase was supported by a six percent rise in advertising volume to 3.5 million advertising spots (advertising space) on television, and in newspapers and magazines. With about 68 percent of total spending, television generates most of the country's advertisement spending, followed by newspapers (30 percent) and magazines/tabloids (2 percent).
| 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
A number of products that contributed significantly to the increase of advertisement spending on television are 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).
Although the portion of advertisement spending in newspapers towards total advertisement spending fell due to the rise of television, in absolute terms the value of advertisement spending in newspapers rose 15 percent, particularly due to spending by government and political organizations (which grew 72 percent to IDR 2 trillion) ahead of the legislative and presidential elections in mid-2014.
The largest share of total advertisement spending in the media of Indonesia is accounted for by Indonesian companies, particularly those active in the telecommunications, fast moving consumer goods and finance sectors of Indonesia.