Big bucks up for grabs in ad industry
Like it or not, the tempting tag lines and seductive images of advertisements hold sway over many aspects of our lives. The Jakarta Post reporters, Budiman Moerdijat, Devi M. Asmarani, Edith Hartanto, Oka Budhi Yogaswara, Meidyatama Suryodiningrat, Stevie Emilia, Dwi Atmanta and Ridwan M. Sijabat, look at what it takes to get ahead in the burgeoning local advertising industry. More stories are on Page 3 and Page 11.
JAKARTA (JP): Advertising has come into its own in recent years as a major component in the national economic engine.
In tandem with economic growth and the increasing prominence of private television stations, the advertising industry has flourished.
With some 50 advertising companies operating, there are big pieces of the advertising pie to be had.
Total spending on advertisements has nearly doubled in the last two years.
In 1995, advertising spending was Rp 3.3 trillion, but rose to more than Rp 4.6 trillion the following year. It is expected to reach nearly Rp 6.5 trillion this year.
Prior to the onset of the monetary crisis, many projected that advertising spending would swell above Rp 12 trillion before the turn of the century.
The growth of the industry has accompanied the rising prosperity of the nation, particularly the affluence and consumptive lifestyles of urbanites.
Products jostle for prominence in the consumer market, and they get their crucial sales pitch across through ads.
With five private television stations, advertisers now have an expanded forum in which to parade their wares.
TV absorbs more than 55 percent of all advertising. The share of print media -- newspapers and magazines -- has been on a persistent slide in recent years, and now stands at just 33 percent.
Despite the economic turmoil, some advertising industry insiders are optimistic that more good days lie ahead.
They argue that companies realize the necessity of advertising. Even with slight ad spending decreases, they claim that advertising will continue to be a major force in helping sell products.
Property and banking are the sectors likely to make the biggest cuts in advertising spending next year. Property accounted for 15 percent of all advertising last year, according to estimates.
Yusca Ismail, chairman of the Indonesian Association of Advertising Agencies, was more reserved than many of his colleagues on prospects in the years ahead.
Guardedly optimistic, he warned that "1998 will be a year of uncertainty".
If the feared big cuts do come, medium-sized agencies are expected to fare worse than small ones.
The latter survive on advertising contracts from many products, and the loss of several of these may not hurt them too much. Medium-sized agencies have larger billings, but their client based is limited to a few companies.
Lifestyle
Mention the advertising industry, and many will give a knowing, almost envious look. The prevailing stereotype is that advertising executives revel in the high life.
Few professions bring their workers into almost constant interaction with the beautiful people.
Popular TV serials -- including the syndicated Melrose Place exposing the glamorous exploits of a bunch of advertising staff -- perpetuate the glamorous stereotype.
Salaries are in the upper range for Indonesian white collar workers.
Cakram advertising industry magazine reported that account directors earn an average of Rp 5.5 million per month, and art directors around Rp 3 million. Creative directors receive the biggest average paycheck of Rp 13 million.
But ad executives say the rewards come at a cost, including long work hours and the stress of dealing with uncooperative talent.
Romanus Sumaryo of the Artisi Advertising and Communications Agency says models can be temperamental, and "sometimes extremely cranky".
He added that the race to meet deadlines and complete projects to clients' wishes can take a toll on the health and social life of ad executives.
Quality
Ad production is soaring, but quality still hovers around the middling mark.
Yusca Ismail attributes this deficiency to the dearth of qualified local ad workers, and a decided rarity of fresh ideas.
"We need more advertisements which can 'excite' the public."
Savvy local ad executives find themselves snowed under by work, and many firms employ expatriates to pick up the slack.
Yusca reminds that the advertising industry is still in its teething phase here.
"We are in the early stages of the advertising industry, especially in TV commercials," he said.
Date shows that 65 percent of advertising workers have less than six years experience in the field, and half of this percentage has worked only three years.
This shortage of expertise and grounding may be the reason for several advertisements denounced as insensitive or vulgar.
Women's groups were incensed by a public service print ad showing a miniskirt framing a pair of legs, with the provocative blurb: "How can the number of sex crimes go down if skirts get higher?"
Scant attention to ethics is another contentious issue.
Zumrotin K. Susilo, executive director of the Indonesian Consumers Foundation, said more government involvement was needed to check misleading advertisements.
"The concern now is how to make a responsible and ethical ad."
A subtle pitch is a rarity, with the hard sell overwhelmingly preferred. Critics argue ad companies often prey on the ignorance of children and women in exaggerated product claims.
Communications expert Muhammad Budyatna says advertising shapes children's habits.
They may plead with their parents for junk food or toys promoted in TV ads.
Many countries have legislation barring misleading or exploitative advertising messages directed at children.
In Belgium, candy advertisements must be accompanied by a graphic of a toothbrush. In Denmark, chocolate and snack ads must not claim to be supplements for the main food groups. In Australia, advertisements are barred during preschool programs.
There is no comparable legislation here, but chances are it will come with recognition of the advertising industry's considerable and ubiquitous influence.