Ad spending grows slower as strategy shifts

Ad spending grows slower as strategy shifts

Anissa S. Febrina, The Jakarta Post, Jakarta

Watch out for advertisement invasions!
"There is not a single aspect of our lives that has not been
bombarded with advertisements," 25-year-old interior designer
Dita Eka said. "Even public toilet doors at malls bombard us with
ads, ads and more ads."

A bit of an exaggeration perhaps, but not completely untrue,
with recent media research showing a slower growth in the
country's 2005 above-the-line advertisement spending.

Nielsen Media Research reported on Wednesday that advertisers
in the country spent only 5 percent more in ad expenditure,
totaling Rp 23.59 trillion (some US$2.4 billion) between January
and November this year, as compared to the same period last year.

This was far slower growth than in the last three years, with
advertisement spending previously growing by at least 32 percent
per year.

"We have not determined an exact analysis, but it's most
likely because advertisers have shifted more to a below-the-line
strategy," Nielsen Media Research client service manager Ika
Jatmikasari said.

Above the line (ATL) is an advertising technique using
specific traditional media like newspapers, magazines, radio and
television.

Below the line (BTL) strategy utilizes any possible media from
outdoor signs, free gimmicks to promotional events.

The trend begun only this year, Ika added, as previously ad
spending growth had been relatively stable.

The shift to unconventional advertising strategies is
increasingly noticeable on the streets of Greater Jakarta, from
billboards, banners on bridges to promotional ashtrays on tables
in cafes and restaurants.

In addition, promotional events take place more often than
before, such as free milk campaigns at schools to hip urban
entertainment events.

"However, ad spending on conventional media will always grow,"
Ika added.

The research, covering 16 national and local television
stations, 75 newspapers as well as 135 magazines and tabloids,
also reveals that electronic media took the largest share of the
advertising pie with a 70 percent share.

Among the top 10 categories, advertisements on hair care
products topped the list this year, amounting to almost Rp 1.4
trillion.

Ad spending on such products increased by 28 percent from the
same period last year.

"There are new hair care products being introduced. It
contributed to the growth," Ika explained.

Promotion of hair care products also goes beyond TV screens
and print media pages. It ranges from free shampoos in public
places to on-line polling on what "beauty" is.

For advertisers and the advertising industry as a whole, when
it comes to promoting and selling products, the sky is the limit.

It is small wonder that this country's economy relies heavily
on consumption.