Tue, 06 Oct 2009
Advertisers will soon shift a significant amount of their spending to digital and mobile media, threatening print and even TV media, a recent survey predicts.

Global business consultancy Pricewaterhouse Coopers says that global advertising spending on the Internet and mobile media will increase annually by a mere 0.3 percent in 2009 and 2010, and then surge up to 12.9 percent between 2011 to 2013.

In Indonesia, by the end of 2013, the growth in digital and mobile media ads is predicted to be much higher than the global rate.

The spending is predicted to be stagnant in 2009 and 2010, but from 2011 to 2013 it will boom by an annual 14.5 percent, the company says.

However, TV ads in Indonesia will likely stay at the top of the ads growth list by the end of 2013, with a growth rate of 16.1 percent.

In second place will be digital and mobile media, with 14.5 percent growth, followed by video games ads at 9.6 percent.

The predicted growth of digital and mobile advertising in Indonesia will be highly affected by the shift in behavior of consumers, the study says, predicted to spend most of their money on digital and mobile platforms.

“Starting from 2012, the spending on digital and mobile platforms in Indonesia will be higher than that on other forms of media,” said Irhoan Tanudiredja from Pricewaterhouse Coopers Indonesia.

“The opposite scheme will fit the global picture, which in 2013, will see the spending on digital and mobile platforms stay less than other spending, despite the digital boost.

“Along with the 2008 global downturn, the advertising sector is currently declining,” said Marcel Fenez, Pricewaterhouse Coopers’ global leader for entertainment and media.

“But we predict the effect will end soon and the market will rebound greatly starting from 2011, particularly the mobile and digital media.”

Fenez added the economic downturn had failed to stop emerging “digital behaviors” among consumers that would be even more widespread.

“Businessmen could find it more difficult to hide from the digital revolution,” he said.

Opportunities for advertisers in digital and mobile media will be supported by new models of digital ad-funded revenue, ranging from click-through banner ads and pre-roll ads on new video, as well as many other types.

Pricewaterhouse Coopers predicted that, despite the advertising boom, the overall spending in 2013 would likely be lower than in 2008.

“That doesn’t mean companies are advertising less, but they’ll be able to advertise more cheaply using the digital and mobile media,” Irhoan said.

A study by ACNielsen Indonesia in 2008 showed the share of Internet and mobile advertising revenue was still at the bottom of the media advertising revenue list, despite the boost in growth.

Television topped the list, with a hefty 16 percent increase in advertising revenue during the year, bring in a total Rp 19.7 trillion (US$2.05 billion).

Newspapers enjoyed Rp 10.1 trillion of advertising revenue during that same period, while magazine and tabloid ad revenues were Rp 864 billion and Rp 401 billion respectively. (bbs)



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