Indonesia ad spending grow 24%

Advertising spending in Indonesia has grown 24% in Q3 2011 compared to the same quarter last year, reaching more than $2 billion or nearly half of $5 billion the regional spent, according to global media and information company Nielsen.

Compare to the Southeast Asia region, Indonesia experienced the most notable increase in advertising dollars spent in quarter three, followed by the Philippines (+15%) and Singapore (+10%).

In the new analysis released today, Nielsen says the double digit growth in Indonesia is driven by spending on television (25%) and newspaper (22%). Magazine is growing relatively stable at 7%.

“Growth in third quarter is mainly driven by advertisers’ spending during the festive season. As consumption rose during this time, manufacturers tended to splurge during this time to push consumers’ spending,” says Irawati Pratignyo, Managing Director for Media Group at Nielsen Indonesia.

Telecommunication remained the biggest spender in the third quarter of 2011, growing 89% compared to the same quarter last year. Followed by hair care products (+11%) and government & political categories (+27%). For the first nine months last year, advertising spending in the country reached $1.7 billion.

In the same period, advertising spend throughout Southeast Asia exceeding US$5 billion from last year $4.3 billion. Nielsen’s Southeast Asia Quarterly Advertising Index revealed that total advertising spend across the region jumped by 3% in quarter three 2011 compared to quarter two. The latest quarter’s result was an increase of 16% on quarter three 2010 and 15% year-on-year.

“The growth in advertising spend coupled with strong consumer confidence within the region are promising signs for Southeast Asia. Strong advertising growth in the region over the past year underlines the region’s resilience amidst global economic uncertainty and increasing spend in markets such as Indonesia and the Philippines echoes sentiment within the region that local economies are still thriving and capable of withstanding external shocks,” notes David Webb, Nielsen’s APMEA Region, Managing Director of Advertising Solutions.

According to the Nielsen Index, growth in advertising spend across main media was driven largely by television and newspapers – television advertising spend increased 5% in the third quarter and 17% compared to the third quarter 2010, whilst newspapers, which remained flat in the third quarter, experienced 14% growth quarter-on-quarter.

Haircare, telecommunications and government department categories lead as the major sectors contributing to advertising spend across the Southeast Asia region, whilst Unilever topped the list of the region’s highest spending advertisers during the quarter three 2011 period.

“Whilst marketers throughout the region grapple with the challenge of spreading advertising budgets across a growing number of media platforms, television continues to demonstrate its un-matched ability to reach the masses, and technological developments such as HDTV, IPTV, TV on-demand and time-shifted viewing are all contributing to the ongoing appeal of television,” observes Webb.

As we look to the year ahead, he adds, the common challenge of allocation of advertising spend will again be at the forefront of marketers’ minds and all media, traditional and emerging, must look for ways to maintain audiences and demonstrate return on investment in order to earn their share of advertising dollars.

**The Nielsen Southeast Asia Advertising Index is produced on a quarterly basis to highlight key trends in advertising spend throughout the region. Main media reported at a regional level are: free to air TV, newspapers and magazines. In several markets advertising expenditure is based on media industry rate cards, and may not necessarily reflect actual media market conditions. The advertising data monitored in each market varies by number of media sectors covered and rate card methodologies. When reviewing year-on-year comparisons, significant changes in spending may reflect increases in media coverage, or rate card increases in addition to a general shift in ad spending activity. Data was collated at a local currency level and converted to US dollars using the official exchange rate as of November 2011.

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