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Jakarta Post

Samsung, Tokopedia spend big on digital ads, Nielsen says

  • News Desk

    The Jakarta Post

Jakarta   /   Thu, September 19, 2019   /   01:12 pm
Samsung, Tokopedia spend big on digital ads, Nielsen says More than just a photo and video sharing social networking, Instagram has emerged as one of the biggest advertising media industries. ( Meepian)

Technology company Samsung Indonesia and homegrown unicorn Tokopedia are among several companies that have spent big on digital advertising in the last 12 months, according to a recent study by data analysis firm Nielsen Indonesia.

Samsung allocated 42 percent of its total ad budget on digital platforms during the period, while online marketplace Tokopedia spent 36 percent of its ad budget and smartphone maker Vivo disbursed 26 percent of its allocation for digital commercials, the Nielsen Advertising Intelligence Q3 2018 – Q2 2019 study revealed on Wednesday.

“Digital media is considered by brand owners as an important option in spending their advertising budgets,” said Nielsen media research executive director Hellen Katherina. “As a rookie, digital media has been able to show its existence in terms of advertising spending, in the midst of TV domination.”

It also found that online application platforms had the biggest contribution to digital advertisements, followed by communication equipment and services and automotive.

Digital platforms as a promotion means contributed to Rp 9.3 trillion (US$660 million) from a total Rp 165 trillion in ad spending during the study period. Nielsen could not give a figure on digital ad spending growth as it had just started researching the topic in last year’s third quarter and was unable to provide quarterly data.

Therefore, digital ad spending on the top 200 Indonesian websites contributed to 6 percent of all ads in July 2018 until June, while the remaining amount was disbursed to other media, namely TV stations, newspapers and radio stations.

Advertisements on TV stations dominated the market share with 79 percent contribution at Rp 130 trillion, while print media chipped in 15 percent or Rp 24.3 trillion and radio stations contributed to 1 percent or Rp 1.7 trillion.

Nielsen’s study involved 17,000 respondents in 11 cities in Indonesia, 15 TV stations, 99 newspaper companies, 120 magazine and tabloid companies, 104 radio stations and the country’s top 200 websites. Hellen, however, said the study had not yet taken into account advertisements on social media platforms and search engines, such as Facebook and Google. (awa)