Report: Telecoms maintain lead in spending, mostly on TV

According to a recent report by Nielsen research, Indonesia’s advertising spending increased 29 percent during the first half of this year to Rp 28.5 trillion (US$3.16 billion) from the same period last year, boosted by an
increase in TV commercials during the World Cup period and a sharp increase in spending by telecommunications-related companies.

“The sharp increase in spending on advertising during the first half was not only driven by the World Cup, but also the telecommunications industry whose advertising spending showed a 50 percent increase compared to [H1 2009],” Nielsen Audience Measurement managing director Irawati Pratignyo said Thursday.

The survey covered 24 television stations, 95 newspapers and 163 magazines and tabloids in Jakarta, Surabaya, Medan, Semarang, Bandung, Makassar, Yogyakarta, Palembang, Denpasar and Banjarmasin.

The figures presented are gross rates unadjusted for discounts and promotions.

According to the report, TV continued to dominate the Indonesian advertising market, receiving more than 60 percent of the total spending during the first half of 2010. Newspapers contributed 35 percent, while magazines and tabloids grabbed only 3 percent.

The total advertising spending for TV reached Rp 17 trillion, 35 percent more than the amount recorded for the same period in 2009.

Advertising spending on newspapers increased 21 percent to Rp 10 trillion, while that of magazines and tabloids increased by 16 percent to Rp 973 billion.

Telecommunication companies remained the biggest spenders in all media categories, with a total spending reaching Rp 2.6 trillion, a 50 percent increase over the first six months of 2009.

“Telkomsel and XL are the top 2 highest spenders with total spending of Rp 260 billion and Rp 250 billion, respectively,” Irawati said.

Government and political organizations were the biggest spenders in newspaper advertising, outlaying a total of around Rp 1 trillion. (map)