Staff Reporters
Jul 30, 2010

Telcos remain the highest TV ad spenders during WC in Indonesia : Nielsen

JAKARTA - Advertising spend increased 29 per cent in first half of 2010 compared to the same period in 2009, marking the highest increase for three years.

Makassar and Bandung are known for their loyal soccer fan base
Makassar and Bandung are known for their loyal soccer fan base

Adspend during the World Cup has increased June spending by 13 per cent.

Not surprisingly, TV enjoyed the highest growth (35 per cent) from the previous year, driven by spending on two World Cup broadcasters in June. 

Newspapers come in second place with almost Rp. 10 tn (US$1.11 billion), experiencing 21 per cent growth from last year. Other monitored print media i.e. magazine and tabloid grab the remaining three per cent, with the total of Rp. 973 bn (US$108 million). 

Irawati Pratignyo, managing director of Nielsen Audience Measurement, commented, "The high increase of advertising spending in this first half is not only mainly driven by the World Cup, but it is also driven by the telecommunication industry's advertising spending that shows a significant increase from last year." 

TV viewers increased 44 per cent during World Cup.

For official broadcast channels RCTI and Global TV, the World Cup boosted viewer levels with 44 per cent to 1.9 million people. The audience increase also impacted total television viewing which increased nine per cent to 6.4 million people. 

In general, 65 per cent of 2010 World Cup viewers were male; 56 per cent of those who watched the games were above 30 years and 54 per cent were workers. Comparing between cities, the highest TV viewers were found in Makassar (34.4 per cent) and Bandung (31 per cent), known for being loyal soccer fans.

Telco spending increased 50 per cent and remains the highest in all categories.

Telecommunication remains the highest spender category among all media types with a total spending of Rp. 2.6 tn (US$288.6 million) in first half 2010, increasing 50 per cent from 2009. This reflects to the list of high spenders, where nine of 15 are telco providers. Telkomsel and XL are the top two high spenders with total spending of Rp. 260 bn (US$28.86 million) and Rp. 250 bn (US$27.75 million), respectively. 

Other high spenders include Gudang Garam, the only cigarette brand within the big five, increasing its ad spend by over 200 per cent to Rp. 174 bn (US$19.31 million). The increment is also attributed to the World Cup 2010 event. 

Spending on newspapers.

Government and politics is the highest spender in newspapers with a total spend of Rp. 1 tn (US$111 million), through dropping 19 per cent from last year. This is mostly due to the local government election.

Telco spend in newspapers increased 45 per cent from last year with Rp. 882 bn (US$98 million). Other big spenders in newspapers also show some motorcycle brands with a total spending of Rp. 562 bn (US$62.38 million). 

Spending on magazine and tabloids.

Media and production house remains the highest spender categories with Rp. 85 bn (US$9.43 million). Telco also allocate some of its advertising budget to this media, spending Rp. 77 bn (US$8.5 million), increasing 14 per cent from last year. Hair care brands also are among the top spenders. 

 

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