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Nielsen Company Indonesia, the local unit of the global information and market research company Nielsen Holdings PLC, says the value of spending on advertisement on television and in printed media in Indonesia has risen in the January-July 2017 period. However, this growth is a bit distorted because it is only supported by rising tariffs, and not supported by rising numbers of adds (number of spots).
Growth of advertising spending in Indonesia's printed and electronic media grew 14 percent year-on-year (y/y) to IDR 134.8 trillion (approx. USD $10.1 billion) in 2016 from IDR 118 trillion in the preceding year. This growth pace is nearly double the annual growth pace that was recorded in 2014 and 2015 at 8 percent and 7 percent, respectively. These data come from a new report released by Nielsen’s Advertising Information Service earlier this week.
RTB House, a Poland-based technology firm that develops solutions for personalized display advertising in more than 30 markets across the globe, expects online advertisement spending in Indonesia to reach USD $4.92 billion by 2019 (up 250 percent from estimated online advertisement expenditure in 2016). This rise comes on the back of Indonesia's rising Internet and smartphone penetration. Recently, Indonesia surpassed the magic number of 100 million in terms of Indonesian Internet users.
Spending on advertisement in Indonesia's media in the first six months of 2013 has grown 25 percent to IDR 51.16 trillion (USD $4.65 billion) compared to the same period last year. This sharp increase was supported by a six percent rise in advertising volume to 3.5 million advertising spots (advertising space) on television, and in newspapers and magazines. With about 68 percent of total spending, television generates most of the country's advertisement spending, followed by newspapers (30 percent) and magazines/tabloids (2 percent).
Media Nusantara Citra (MNC) is Indonesia's leading integrated media company. It owns the most popular TV channel of Indonesia (RCTI) as well as two other free national channels (MNCTV and GlobalTV). The company also provides 16 Pay-TV channels which cover a whole range of genres. Most of its revenue is gained through advertisement on its TV channels. Apart from television, the company's supporting businesses include print & online media as well as radio.
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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.
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