Indonesian Advertising Association Launches Indonesia Media Guide 2015

Indonesian Media Guide and AdAsia 2017 announcement | Melfin Salim/AdDiction

Indonesian Media Guide and AdAsia 2017 announcement | Melfin Salim/AdDiction

The Indonesian Association of Advertising Companies (P3I) on Tuesday (29/9) launched the Indonesian Media Guide 2015 which contains a wealth of data and statistics on the growth and trends of the Indonesian advertising and media industries as well as a deep dive into consumer behavior in recent years.

In his opening speech, Dentsu Aegis Network Indonesia CEO Harris Thajeb as the head of the association acknowledged the significant role that technology has played in changing the media landscape and transforming consumer behavior. “It’s fascinating to note that there is a rapid change in how the world communicates, including technology, media, and content”, he said. These changes affect how people adopt and consume media, creating new opportunities in a number of fields.

The emergence of smartphones has changed how people treat news, entertainment, and communication, which forces companies to learn new methods in understanding consumers and mastering the media. “Media integration is a necessity to achieve effectiveness. This is the reality of the advertising world”, Thajeb said.

The launch event was also used to promote the upcoming AdAsia 2015 conference in Taipei and the 2017 event in Bali, which would be the first time in 20 years that Indonesia becomes host of the biennial conference. The Taipei event in November will hold an Indonesian night celebrating the Indonesian culture in recognition of the country’s role as the next host.

Research findings
As data providers for the report, representatives from Nielsen and Roy Morgan Research were on stage to present some of their findings which covered a wide range of subjects from the impact of economic situations to the things that are valued the most by consumers.

Despite a massive drop in government spending and private sector investment starting in 2014, Nielsen’s consumer confidence number remains very high above global average and spending is dominated by fashion, education, and loans although entertainment and recreation have suffered significantly.

Television spending across the board is still growing but ad spots are relatively stable, meaning spots are becoming more expensive. Companies in the tobacco industry, e-commerce, baby formula, and beauty products industries are the ones willing to spend significantly more despite economic downturn.

On the print side, 2015 is the first year that ad spend on print has declined but the number of spots has been in gradual decline since 2012.

According to Roy Morgan research, the Internet remains the second most consumed media next to television but the number has stabilized over the past year while the huge decline of newspaper readership interestingly has slowed down. However, online readership is still insignificant in comparison, presenting a difficult situation for newspaper publishers in terms of revenue strategies.

As a general outlook on retail, Roy Morgan points out that 23% of consumers shop less often in physical stores as preferences have shifted greatly towards online retail, led by companies such as OLX, Kaskus, Lazada, Bhinneka, Tiket, Zalora, and Tokopedia.

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Aulia Masna

Pretty much anything you want to do in life involves a pitch, so why not dig deeper into the world where everything hinges on the pitch? Advertising is not just an industry, it's a lifeline of many industries. See it, love it, hate it, embrace it, criticize it, do it.

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