From Government of Indonesia

Ad Spending Up 19% in Q1

Advertising industry spending on TV and print media spots grew 19% in the first quarter, hitting Rp7.03 trillion ($798.75 million), according to ACNielsen Indonesia.

This represents a significant rise from advertising spending of Rp5.92 trillion in the January-March period of 2006, and Rp5.54 trillion in the same period in 2005, reported The Jakarta Post.

Of the Rp7.03 trillion spent by the advertising industry in the first quarter of this year, 66% went to 19 surveyed television stations, 30% to 82 newspapers and 4% to 127 surveyed magazines and tabloids, according to ACNielsen numbers released Tuesday (15/5/07).

ACNielsen Indonesia senior manager Ika Jatmikasari said the negative impact of 2005's twin fuel price hikes had eased and businesses were putting more money into advertising.

"The fuel price hikes were still affecting many companies last year, forcing them to slash their budgets for ads. But now, ad spending is picking up and will rise throughout the year as more new products fill the markets. In the meantime, businesses still need to advertise to build up brand awareness," she said.

Commenting on the jump in total ad spending in the first quarter, she said businesses normally spend more money on advertising in the beginning of the year, when they introduce new products.

ACNielsen data show that communication handset producers and service providers topped ad spending in all surveyed media during the January-March period, at Rp457 billion, or 51% higher than the Rp303 billion spent by the sector in the same period last year.

GSM-based operator Telkomsel and cell phone manufacturer Nokia led ad spending in the sector with Rp47 billion and Rp35 billion, respectively. Telkomsel's spending increased from Rp23 billion, while Nokia's was down from Rp37 billion in the same period in 2006.
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