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Ad spending in print media suffers decline last year
Source: Nielsen IndonesiaSpending on advertisements (ads) in newspapers suffered a decline in 2015, the first time in the last 10 years, despite an increase in total ad spending during the year, according to a survey conducted by Nielsen Indonesia
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Source: Nielsen Indonesia
Spending on advertisements (ads) in newspapers suffered a decline in 2015, the first time in the last 10 years, despite an increase in total ad spending during the year, according to a survey conducted by Nielsen
Indonesia.
2015 was a bad year for print media as the purchase of ad spaces in the country's 101 newspapers dropped by 4 percent to Rp 30.8 trillion (US$2.2 billion), while overall spending on ads in papers, on television, in magazines and in tabloids increased 7 percent toRp 118 trillion.
'The decline can be attributed to the fact that the industrial sectors are cutting ad budgets to save costs amid a rise in other costs in a slowing down economy,' Nielsen Indonesia media director Hellen Katherina said during the release of the data in Jakarta on Wednesday.
The survey also showed that the number of newspapers in the country decreased to 101 in 2015 from 117 in 2011.
Several papers, including Sinar Harapan and The Jakarta Globe, have shut down operations due to lacklustre profits caused by high operating costs and tight competition with online media.
However, Hellen said that the public should take note of the bright side because despite the decline, last year also saw a quarterly rise in ad spending for newspapers for the first time in two years.
Starting in the middle of 2014, papers saw declining ad revenues every three months until the fourth quarter last year where ad sales finally rose by 1 percent after previously declining between 1 and 11 percent.
The data revealed that spending on paper ads rose quarterly thanks to the purchase of ads by the government and political parties. These purchases contributed Rp 1.8 trillion to newspaper revenues.
'We hope the [quarterly] trend will continue to be positive this year as people buy more stuff in a recovering economy,' Hellen said.
The local economy in the last quarter of 2015 grew by 5.04 percent, an improvement compared to the 4.74 percent recorded in the third quarter of the year.
The government is also committed to maximizing spending in order to stimulate the economy.
Nielsen's data also revealed that the government, alongside regional administrations and political parties, was the biggest contributor to newsprint ad revenues, spending Rp 5.3 trillion in total last year, an 8 percent increase year-on-year (yoy).
Other top spenders included corporations, real estate and housing businesses, private vehicles and hotels and restaurants, with ad purchases totalling Rp 2.3 trillion,Rp 1.8 trillion, Rp 1.7 trillion and Rp 1.7 trillion, respectively.
Brand-wise, Honda motorcycle and Matahari Department Store were the top spenders with Rp 313 billion and Rp 214 billion, respectively.
Despite the fall in newspaper ad sales, overall sales for television, papers, magazines and tabloids increased 7 percent yoy to Rp 118 trillion, thanks in large part to a 12 percent increase in television ads. (rbk)
