Adspend has risen continuously from 2001 to 2006 and media analysts from Nielsen expect 2007’s tally to grow by 17 per cent, to 34 trillion rupiah (US$3.6 billion). However, Intan Sukmawati, general manager at MEC, cautioned that media and consumer inflation might limit growth to 15 per cent this year.
From Q2 2008, key global events such as the European Championships and the Beijing Olympics are likely to drive adspend in 2008 to 40 trillion rupiah. In previous years, the Euro 2004 tournament saw adspend rise from over four trillion to 5.5 trillion rupiah between Q3 2003 and Q2 2004. The presidential elections in Q3 2004 saw ad spend climb to nearly six trillion rupiah.
Food and beverage, toiletries/cosmetics, computer/ telecommunications and the automotive industries will continue to dominate adspend. The biggest-spending brands in Indonesia are Telkomsel, Nokia, Clear and Esia. “Unilever’s Clear is the leading shampoo brand and it’s very much into share-of-voice domination. And competition in the telecommunication category is always very fierce. To be market-leading brands, they need to re-establish their media dominance,” said Sukmawati.
Sukmawati also noted that political parties, running for upcoming elections in late 2008, will drive growth in the corporate and public service announcement category of adspend.
Television will remain the most popular medium in the country due to the country’s size.
However, Sukmawati backs digital media to grow apace, as Kompas Group - the country’s leading publication group — will be launching its digital platform in 2008.
