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Upcoming regional elections attract below average ad income
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Surya Citra Media president director Sutanto Hartono answers questions on the sidelines of the company's public expose in Jakarta on Dec. 16. (JP/Anton Hermansyah)
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nlike the 2014 presidential election, the 2017 regional elections have so far not brought significant advertising income to media companies, an industry player has said.
Surya Citra Media president director Sutanto Hartono said the rule limiting donations for political campaigns was the main factor behind the slump in advertising income, with political parties now not spending as much as they once did.
"Moreover, in the gubernatorial elections, the campaign has not been as intense as the legislative and presidential election [campaigns]," he said at the company's press briefing in Jakarta on Friday.
Sutanto added that net advertising expenditure growth for 2017 would be 7 to 8 percent, similar to 2016, and it would still be dominated by advertisements for consumer goods.
"Political advertising expenditure may jump again for the 2019 presidential election," he said, adding that during the 2014 election, advertising expenditure jumped by 89 percent.
Media research organization Nielsen Indonesia recorded that during the first half of 2016, gross political advertising expenditure reached Rp 3.8 trillion (US$283.54 million).
However, Nielsen Indonesia executive director Hellen Katherina mentioned that most political parties advertised themselves in their own TV channels and newspapers. Because of this, the net spending could be far lower due to the “special rate” given to them. (evi)
