Ads from the advertisers' perspective<\/p>\n
JAKARTA (JP): Projected advertising expenditures in Indonesia,
\nacross all media, will amount to Rp 3,113 billion this year.
\nCommercial television and newspaper will have the lion's share
\nbetween them, carrying advertising worth 80.8 percent of overall
\nexpenditures, according to Media Scene 1994\/95. The remaining
\nadspend is roughly distributed between magazine, radio, and
\noutdoor advertising equally. Cinema receives the tiny remaining
\npercentage.<\/p>\n
How do the client companies choose their advertising agencies?
\nHow do they decide on which to select from the wide range of
\nadvertising agencies now operating? In choosing an agency the
\nfirst consideration is reputation. If this is insufficient
\nguidance, companies then brief a number of agencies and ask them
\nto submit proposals, from which they may base their decision on
\nwhich advertising agency to use. Credibility, alacrity, proven
\ncreative ability and creative prospects are key assets of sought-
\nafter agencies.<\/p>\n
Deregulatory packages since 1983 and recent reforms have
\nproduced a robust banking sector in Indonesia, with, at last
\ncount, 240 banks in competition in 1994. At Bank Bali, Product
\nServices Development and Management Manager Eric Gunawan and
\nPublic Relations Manager Dian Syarief are happy to deal with the
\n"top 10" advertising agencies. But a drawback with the big
\nagencies can be that they may already have many established
\nclients and not have sufficient time for a new one. "That's the
\nfirst constraint," Dian says. Second, "if they are in the top 10,
\ntheir fees are very high, in which case we have to be "creative"
\nwith our budget and look to smaller, cheaper agencies."<\/p>\n
Is there then always a place for the smaller, domestic agency?
\n"Yes, why not? And there is also a place for nationalism!" Dian
\nsays. "I have also found that the local agent, whether he is a
\nwriter or a director, is very creative, and that the expat is not
\nnecessarily the expert."<\/p>\n
"Since the early 1990s many new advertising agencies have
\nsprung up in Indonesia "The growth has been tremendous," Indra
\nAbidin, from Fortune Indonesia, says. It is the view of Paul W.
\nKamardi, of Matari Advertising, that of the about 800 agencies
\noperating (Abidin puts the figure at about 700), about 50 percent
\nare advertising placement agencies, "placing adverts in the
\nclassifieds". Of the remaining 400, half of these agencies
\nproduce billboards, signs, etc. This leaves a remaining 200 that
\nare "genuine" advertising agencies, "one hundred of which are
\ndoing most of the business".<\/p>\n
Potential client companies are frequently visited by agency
\nrepresentatives with a portfolio of work in hand. And, the client
\ncompanies will look at what is on offer. "Why not?" Dian Syarief
\nlaughs. Sometimes companies might discuss with their "visitors"
\nthe effectiveness of the advertising that they are currently
\nusing. Companies seem to feel quite relaxed about being actively
\nsought after in this way. Agencies are not so happy about a
\nsituation which they characterize as price-cutting competition.<\/p>\n
But it isn't just the agencies who knock at the door.
\nProduction houses and the media also approach potential clients,
\nbypassing the agencies altogether. Clients who gave this
\ninformation wondered what the reasons were behind this
\nphenomenon, which seems to be quite marked this year.<\/p>\n
When asked about its relations with the media in other
\nrespects, Bank Bali talked about shared information and news
\nexchange. Given that it is within the media's brief to turn down
\nadvertising that is against public interest, has the media ever
\nhad occasion to reject advertising because of content? There had
\nbeen one occasion when an advertisement was rejected by a radio
\nstation on the grounds that it mentioned the names of the
\ncompetition. This is disallowed in Indonesian media.<\/p>\n
Comments from both the client companies and advertising
\nagencies suggest that both prefer long-term associations, to
\ndevelop a better understanding of client cultures and objectives.
\nIndra Abidin likened the relationship to that between husband and
\nwife, first entered into after the agency has assured itself that
\nthe relationship is workable and to mutual benefit. Synergy of
\npurpose. "We have our own way of identifying the client: First,
\nthe product, and second, the people behind the product". Paul
\nKamardi said that agencies prefer to have clients with whom they
\nare "comfortable", who share that "x-factor, body chemistry".<\/p>\n
Bank Bali prefers a long relationship with an agency, seeing
\nit as beneficial for both sides. When an agency and a client have
\nknown each other for some time there is no need to start from
\nscratch each time there is a new campaign. "They already know us,
\nthey know our corporate culture, they know our product. We hope
\nfor a long relationship, but if our needs are not met, we have to
\nbe honest, we have to be "creative" (and find another agent to
\nsuit)."<\/p>\n
It has been suggested that agencies have problems keeping
\nbanks as clients. Bank Bali suggests that it may be because of
\nthe very tight time constraint in bank advertising campaigns.<\/p>\n
Mobility is a problem for client companies. Rapid staff
\nturnover in the advertising sector interrupts the continuity of
\nthis long-term client-agency relationship. When key staff leave
\nan agency, time is required once again to build relationships and
\nunderstanding anew, for replacement agency staff to get to
\nunderstand a client's situation and their characteristics all
\nover again.<\/p>\n
Banks differ on the question of conflict of interests. Whereas
\nMatari Advertising will only accept a single client, such as one
\nbank, from each area, Citra-Lintas has several banks on its
\nbooks, clients that clearly see there is no compromise or
\nconflicts of interest in the services offered by the agency. But
\nwith the view that not many advertising agencies have such a
\n"clear separation of accounts", Bank Bali prefers to be the sole
\nbanking client at the one agency. Whether there is conflicts of
\ninterest within a large agency would depend on the organization
\nof resources within the company.<\/p>\n
For a company such as PT LippoMelco Electronic Indonesia,
\nwhich markets advanced high-technology products such as
\nMitsubishi refrigerators and televisions, it has been essential
\nto have an agency with an infrastructure equipped to service the
\nneeds of high-end, exclusive product marketing. LippoMelco has
\nbeen with Matari Advertising, who also offers them market
\nresearch, for about nine years.<\/p>\n
Managers at LippoMelco, Johny C Wijaya, marketing, and Soeroto
\nI. Santoso, promotion and research, subscribe to the view that
\nthe large advertising agency, with international links, suits
\nthem best. It is also a matter of track record. They say the
\n"natural law" applies: if agencies were creatures in the wild, it
\nwould be the biggest animal which was the strongest. Though the
\nsmaller might be lighter of step, and quick on its feet, it is
\nsize that counts.<\/p>\n
Bank Bali, on the other hand, mixes it. Today it has dealings,
\ndepending on activities, with a range of advertising agencies,
\nfrom large long-established agencies like AdForce, which has
\ninternational links, to small local agencies like Kristal and
\nKomunika.<\/p>\n
"Once there is no creativity and the agency no longer delivers
\ngood service, then we have to search for another agent," Dian
\nSyarief says. "Of key importance is professionalism. What I mean
\nis that they give good service in being on time. Punctual. We
\nneed the agency's support in bringing our projects in on time."
\nThat is to say, service delivery.<\/p>\n
For their part, the advertising agencies recognize that
\nclients will shift when they are not satisfied, and will look
\nelsewhere for more creativity, a lower price, more timely
\ndelivery, or additional manpower.<\/p>\n
If a client leaves, "agencies only have themselves to blame",
\nPaul Kamardi says. Though it should be pointed out that a change
\nat head office overseas, to another agency, will mean the
\nIndonesian subsidiary has to follow suit and also change.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ads-from-the-advertisers-perspective-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}