Spending on Advertising in Indonesia Expected to Jump 20% in 2014
Spending on advertising in Indonesia is expected to jump 20 percent to IDR 140 trillion (USD $12.4 billion) in 2014. This expected growth is mainly the result of increased spending due to Indonesia's legislative and presidential elections as well as the 2014 FIFA World Cup in Brazil. The former means that Indonesian political parties will increase spending to reap popularity through media exposure, while the latter will draw millions of spectators and readers due to the popularity of football in Indonesia and thus becomes interesting for advertisers.
The head of the Indonesian Advertising Companies Association (Persatuan Perusahaan Periklanan Indonesia or P3I), Harris Thajeb, said that corporate advertising spending has accounted for the bulk of this year's spending. Next year, it is expected to remain stagnant. Growth in advertising spending in 2014 is expected to be supported by the government and political parties. The private sector will probably be less enthusiastic to advertise during election campaigns as they do not want to mix their advertisement with political adds. Political parties will mostly use newspapers, television and digital media for their campaigns.
Sectors that contributed most to advertising spending in Indonesia in 2013 were telecommunication, fast moving consumer goods and banking. The most popular medium to advertise remains television. According to research conducted by the Nielsen Company, in the first half of 2013, 68 percent of total advertising spending went to television, followed by newspapers (30 percent) and magazines/tabloids (2 percent). A number of products that contributed significantly to the increase of advertising spending on television were hair care products (which grew 21 percent to IDR 2.2 trillion), telecommunication (which grew 20 percent to IDR 1.6 trillion), coffee and tea (which grew 144 percent to IDR 1.6 trillion), and clove cigarettes (which rose 53 percent to IDR 1.6 trillion).
| Advertisement Spending |
Growth (%) | |
| Semester I-2009 | IDR 22.06 trillion | - |
| Semester I-2010 | IDR 28.50 trillion | 29.2 |
| Semester I-2011 | IDR 33.45 trillion | 17.4 |
| Semester I-2012 | IDR 40.92 trillion | 22.3 |
| Semester I-2013 | IDR 51.16 trillion | 25.0 |
Source: Nielsen Company