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.