Nielsen Company Indonesia, the local unit of the global information and market research company Nielsen Holdings PLC, says the value of spending on advertisement on television and in printed media in Indonesia has risen in the January-July 2017 period. However, this growth is a bit distorted because it is only supported by rising tariffs, and not supported by rising numbers of adds (number of spots).
Hellen Katherina, Executive Director & Head of Media Business at Nielsen Indonesia, said spending on advertisement on television and printed media in Indonesia rose 6 percent year-on-year (y/y) to IDR 81.3 trillion (approx. USD $6.1 billion) in the first seven months of 2017.
However, this growth was only made possible by a 7 percent (y/y) increase in average add tariffs because - in terms of volume - the number of advertisements actually fell 2 percent over the same period. Therefore, Katherina labels the advertisement spending growth that was seen in January-July 2017 as pseudo-growth.
Television remained the most popular media for advertisement in Indonesia. During the aforementioned period a total of IDR 65.1 trillion (approx. USD $4.9 billion) was spent by advertisers to put their adds on television, followed by printed media (IDR 15.6 trillion) and, specifically, magazines (IDR 656.6 billion).
By far most adds in Indonesia involved telecommunication services & products, e-commerce, snacks, personal care products and vitamins. Considering people's lives are increasingly dependent on online services and activities, telecommunication and e-commerce companies contributed most to total advertisement spending in Indonesia in the January-July 2017 period.
Meanwhile, the role of tobacco products fell. Advertisement spending by Indonesia's tobacco companies fell 27 percent (y/y) to IDR 1.1 trillion in the first seven months of the year. This development is in line with recent government regulation that make it increasingly difficult for cigarette manufacturers to advertise their products in media.
Other products or segments that were less visible on television and printed media so far this year are traditional medicines, politics & government, tea & coffee, and computer & hardware.