Advertising Expenditure Hit US$3.6 Billion
"It was an increase by 19 percent compared to the previous year."
(Antara/ Rosa Panggabean)
VIVAnews - Advertising Expenditure in both local and national media in 2008 is figured at around Rp 41.71 trillion (US$3.6 billion).
"It was an increase by 19 percent compared to the previous year," said Senior Manager of Nielsen Media Indonesia's Business Development, Maika Randini, on Tuesday, Jan 20.
The estimation is based on research conducted over 93 newspapers, 19 television stations as well as 151 magazines and tabloids. "The research did not include classified ads, discounts and promos. It only focused on ads of commercial products and were based on published rate card," said Randini.
Nielsen, Randini said, has been monitoring media in Indonesia since 2005. "The number of magazines and tabloids significantly rose by 30 during 2008," said Randini. In addition, there were only seven new newspapers.
It was pointed out that the increase of advertisement expenditure was due to the upturn in spot advertisement during 2008. "The number of spot advertisement increased by nine percent compared to the previous year," she said.
The spots in 2008 figured at 5.3 billion, a nine percent increase compared to 2007 with 4.9 billion. Randini went on to say that it was the average number of spot advertisements in TVs, magazines and tabloids, and newspaper.
Out of the three categories, Nielsen's research showed that newspaper hit the highest percentage. "The hike reached 29 percent," she said. Advertisement expenditures in newspaper in 2008 reached Rp 13.8 trillion (US$1.2 billion) while it was Rp 10.6 trillion (US$938 million) in 2007.
The growth of TV advertising expenditure in 2008 reached 14 percent, from Rp 23 trillion (US$2 trillion) to Rp 26.2 trillion (US$2.3 billion). Advertising expenditure in magazines and tabloids grew by 22 percent from Rp 1.4 trillion (US$123.9 million) to Rp 1.7 trillion (US$150.4 million).
However, of Rp 41.4 trillion (US$3.6 billion), the highest sums were contributed by TV advertisements with 63 percent. In addition, newspaper contributed 33 percent and magazines and tabloids shared four percent.
However, television's contribution decreased by three percent compared to 2007. "In 2007, it contributed 66 percent," said Randini.
On the contrary, newspaper's contribution went up by three percent compared to the previous year. "More advertisement on political and governmental issues were in circulation," she said. While advertisements in magazines and tabloids remained steady.
Translated by: Bonardo Maulana Wahono
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