Ads spending may reach Rp 5 trillion<\/p>\n
JAKARTA (JP): Indonesia's growing consumer trend is expected
\nto boost advertisement spending to almost Rp 5 trillion (US$ 2.05
\nbillion) this year, up 20 percent from Rp 4.14 trillion last
\nyear, an advertising executive has predicted.<\/p>\n
Chairman of the Association of Indonesian Advertising
\nCompanies (PPPI) Yusca Ismail said over the weekend that from the
\ntotal amount of spending this year, about 55 percent (Rp 2.77
\ntrillion) would go to television media, 27 percent (Rp 1.34
\ntrillion) to newspapers and the rest to magazines, radio, movie
\nhouses and billboards.<\/p>\n
Yusca, who is also general manager of the Perwanal advertising
\nagency, said the advertising industry would continue to have a
\nbright future \"at least in the next five to seven years\".<\/p>\n
\"This is a short-term prediction based on fluctuations that
\nalways prevail in the industry,\" he said, after speaking at a
\nseminar on communications and marketing.<\/p>\n
Yusca said that after enjoying an average growth of up to 40
\npercent a year since 1989 -- when the government first allowed
\ntelevision stations to air advertisements -- the industry's
\ngrowth was likely to decline slightly to between 20 and 25
\npercent in the coming years.<\/p>\n
\"But even these figures are good and will no doubt provide
\nlots of job opportunities,\" he said.<\/p>\n
Yusca said there were currently \"too many\" foreign workers in
\nthe industry's middle and top-managerial levels. Most worked as
\ncreative, media, operations and art directors as well as
\ncopywriters.<\/p>\n
But he was optimistic that in the next five to seven years,
\nIndonesians would be able to fill most of the positions at these
\nlevels.<\/p>\n
\"Foreigners will then be used strictly for their technical
\nexpertise and advise, but everything else will come from
\nIndonesians,\" he said.<\/p>\n
Yusca said employing Indonesians in the advertising industry
\nhad great advantages because they could better understand the
\ncultural nuance of Indonesian consumers.<\/p>\n
\"It's true that culture influences the advertising industry...
\nMy company, for example, once made an advertisement designed
\nentirely by a team of foreigners and it was a total flop,\" he
\nsaid.<\/p>\n
But foreigners were presently still needed to pass on
\ntechnical and professional skills to the local staff, he said.<\/p>\n
\"That's why, right now, up to half the employees of some
\nadvertising agencies are foreigners,\" he said.<\/p>\n
The industry, consisting of about 150 advertising agencies,
\ncurrently employs up to 7,500 people across the country,
\nexcluding administrative staff.<\/p>\n
A World Development Report last year listed Indonesia as the
\nsecond biggest consumer country in East Asia after the
\nPhilippines.<\/p>\n
Indonesia's consumption expenditure was 61 percent of its
\ngross domestic product in 1994, below that of the Philippines,
\nwhich spent 71 percent of its gross domestic product on
\nconsumption.<\/p>\n
In 1980, Indonesia spent only 52 percent of gross domestic
\nproduct on consumption.<\/p>\n
Data from the Central Bureau of Statistics showed that
\nhousehold expenditure on food-related consumer goods increased by
\n5 percent a year during the 1990-1995 period while expenditure on
\nnon-food consumer goods rose 12 percent a year.<\/p>\n
In 1990, 60.36 percent of Indonesian households' expenditure
\nwas on food and only 39.64 percent on non-food consumer goods. In
\n1995, they spent 56.86 percent on food and 43.48 percent on non-
\nfood consumer goods. (pwn)<\/p>\n
Table: Advertising expenditure (in billions of rupiah)<\/p>\n
1989 1992 1996 1997
\n Television 29 390 2.203 2.770
\n Newspapers 243 377 1.202 1.344
\n Magazines 72 95 270 325
\n Radio 73 100 189 206
\n Movie houses 7 10 10 9
\n Billboards 57 55 266 307
\n Total 481 1.027 4.140 4.961<\/p>\n
Source: Media Scene Indonesia Gross figures, which do not include
\ndiscounts, advertisement-barters that allow ads to be published
\nin the print media free of charge, and ads publicized at special
\nrates.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ads-spending-may-reach-rp-5-trillion-1447893297",
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