Ad spending projected to increase by 30%<\/p>\n
JAKARTA (JP): Advertisement spending in 2001 is predicted to
\nincrease by 30 percent to Rp 9 trillion (about US$967 million)
\nfrom an estimated Rp 6.9 trillion this year, fueled by higher
\nconsumer spending and a nascent economic recovery, according to
\nthe Association of Indonesian Advertising Agencies (P3I) on
\nTuesday.<\/p>\n
P3I chairman RTS Masli cited Indonesia's vast population
\ncombined with improvements in consumer confidence and the
\ncountry's economy as the main reasons behind the optimism.<\/p>\n
\"During the crisis, most firms curtailed their promotion
\nspending. But once they began to advertise again, they went all-
\nout to maintain their market shares,\" Masli said during a break
\nin a seminar on the prospects of Indonesia's advertisement
\nindustry.<\/p>\n
Noted speakers Sjahrir, the president of PT Syahrir
\nSecurities, and Sri Adiningsih, a senior lecturer at Yogyakarta's
\nGadjah Mada University, also addressed the seminar, which was
\nheld by The Jakarta Post.<\/p>\n
Masli said that consumer products, such as personal care
\nproducts like soaps, shampoos and cosmetics, were the highest
\nranking in advertisement spending.<\/p>\n
However, he said, some firms were still holding back their
\npromotions, such as real estate companies which had yet to see
\ntheir market recover.<\/p>\n
Data from P3I shows that in 1999 advertisement spending rose
\nby 49 percent to Rp 5.61 trillion from Rp 3.75 trillion in 1998.<\/p>\n
According to P3I, television still ranks first in absorbing
\nadvertisement expenditure, followed by newspaper and outdoor
\nadvertisements.<\/p>\n
The association estimated that this year television
\nadvertisements would grow to Rp 4.20 trillion from an estimated
\nRp 3.44 trillion last year, newspaper to Rp 1.8 trillion from Rp
\n1.4 trillion and outdoor advertising to Rp 309 billion from 269
\nbillion.<\/p>\n
It said in 1999, personal care products claimed the highest
\nspending for advertisement with a total of Rp 354 billion,
\nfollowed by food and beverages with Rp 251 billion, medicine with
\nRp 357 billion, cigarettes with Rp 232 billion and household
\nproducts with Rp 74.45 billion.<\/p>\n
A marketing executive at cellular phone operator PT Telkomsel,
\nErik Meijer, said advertisement would remain an important tool in
\ntapping the growing mobile phone market.<\/p>\n
\"Because of the good prospective, there will be more
\ncompetitors. And the only way to face them is by placing more
\nadvertisements,\" he said.<\/p>\n
Furthermore, he said because of the complexity of today's
\ntelecommunications products, much must be spent on advertising to
\ninform people.<\/p>\n
Meijer said that while TV advertisements were more aimed at
\ncreating a corporate image, printed media were more suitable in
\nkeeping people abreast of the latest in telecommunication
\nproducts and services.<\/p>\n
However, he said, that too many ads in one media had become a
\nproblem for advertisers.<\/p>\n
\"There are some media that are so popular that they have
\nbecome too cluttered with advertisements,\" he said.<\/p>\n
Meijer said that if half of a TV show's duration was spent on
\ncommercials, Indonesians would watch less TV, thus reducing the
\neffectiveness of the promotion.<\/p>\n
Advertisers felt this media advertisement clutter in late
\n1999, when the economy began to improve and firms felt more
\nconfident to spent money on promotions, he explained.<\/p>\n
Because of this advertisement clutter, he said, advertisers
\nare now harder to please when placing their commercials or
\nadvertisements.<\/p>\n
He said that they had to be more creative in packaging and
\nplacing their commercials.<\/p>\n
To stand out from their competitors, companies are also
\nwilling to pay more in return for a more visible spot in a
\nmedia.(bkm)<\/p>",
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"sponsor": "Okusi Associates",
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