Big bucks up for grabs in ad industry

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.