Coping with the advertising glut in traditional media

The segmentation of global advertising media and the change in the way people use their leisure time, consume information and interact with TV commercials has resulted in a major change in mass marketing. With such a change, companies are now facing more difficulties in finding an effective way of advertising their products.

In a recent interview, Pradeep Harikrishnan, the research advisor of Initiative media specialist, highlighted the implications of the shift in global mass marketing for Indonesia's advertising world. Below are excerpts from the interview.

How has such a change affected advertising here?

Indonesia is going through all the changes you mentioned ... The media is more segmented today than it has ever been. The number of TV stations has increased to 12, with many more regional channels. More regional channels will be operating soon. As a result, channel shares have become fragmented, and advertisers need more channels to reach the same number of consumers they reached five years ago. While the top four channels still have 65 percent of the audience share, they used to reach close to 100 percent five years ago. Effectively, you reach only two-thirds of your target if you use the same TV channels you were using some time ago.

The fragmentation is not restricted to TV alone. Radio has been a very regional and segmented media in Indonesia for a long time. Initiative Media uses 900 radio stations, and these are all local radio stations. It is not possible to obtain national coverage using just a few radio stations in Indonesia. In print, there are over 400 magazine and newspaper titles available today. and that number is growing every year. The reach of the top five newspapers in Indonesia in 2004 is half of what it was in 1998. The media is more segmented in Indonesia today, not just because of the growth in mass media -- a number of new media options have also emerged.

For example, VCD player penetration in households has increased from 12 percent in 1999 to 55 percent in 2004. This means some of the time people spent watching TV is now taken up by movies they watch using their VCD players. The increasing number of shopping malls and entertainment options in large cities has changed the way consumers use their leisure time. TV consumption, for sure, has decreased over the last few years, mainly because of the increase in entertainment and shopping options and the accessibility of low cost VCDs.

Realizing that consumers are spending more time now outside their homes, advertisers in Indonesia are now investing more in out-of-home (OOH) media options.

This includes billboards, banners, posters, and activation in shopping malls and in-stores. The shift from mass media advertising to OOH is inevitable, as mass media options such as TV and radio have increased, and consumers are spending more time outside their homes today -- either because there are working for longer hours or they are seeking entertainment outside their homes.

What are the implications of such a change on traditional advertising media, such as TV, print and commercial radio?

The implications are very clear. It is no longer enough to sit back and think that you have got your message across to consumers by advertising through traditional media, such as TV, radio and print. The segmented nature of mass media means that you have to combine different media vehicles to achieve your objective of reaching consumers effectively.

There are many studies that demonstrate using a combination of media creates a synergistic effect, or an "Impact Multiplier Effect", compared to the use of TV or print only. Radio appeals to different segments of the population. By combining press, radio and TV campaigns, we can achieve a better balance of reach and frequency.

Advertisers are now employing integrated campaigns using mass media and OOH channels to ensure that the message is delivered effectively to consumers. Different media perform different roles, for example TV advertising has the advantage of mass appeal, sound, movement, and print -- details, extended time etc.

A good example would be the multi-media campaign we used for a major shampoo brand in Indonesia. To increase the quality of awareness for this brand we reduced the investment in TV and used other media -- Radio, SMS, outdoor activation etc. The results were encouraging, with more involvement from consumers and a better delivery of the advertising message.

How should such advertising media as TV, print and radio respond to this change?

Traditional media channels -- TV, print and radio realize that they cannot work standing on their own. They work better in combinations and also need to integrate with non-traditional media encountered out of home. Media owners should come together to offer advertisers media combinations that will maximize the impact for brand advertising. But which combination of media can offer the best returns on advertising? That is the million-dollar question, and research is required to uncover the return on multi-media investments. Again, media owners and advertisers should invest in studies that help in answering such questions.

How does such a change influence the way that companies advertise their products?

Companies are looking for better ways of advertising their products. They would like to advertise in ways that are relevant to their target audience, and are likely to create an impact. They are also asking their agencies for more memorable advertising that will break through the clutter, and innovative media solutions.

Companies are also using the "sponsorship" option more now to get noticed. The idea is to improve the visibility of the brand by being associated with a program or event that has high appeal among target consumers. This is also useful in communicating brand values, based on the nature, content and execution of the program or event being sponsored.

Some studies have shown that the ability of consumers to recall brands sponsoring events is about 40-50 percent higher than regular advertising.

Clients also now insist on an integrated media plan. This ensures that all the different media vehicles used for advertising communicate the same message, and hence build the quality of awareness as consumers are exposed to multiple media.

Do you think, TV clutter has also affected the Indonesian TV commercial?

Indonesia has the highest clutter in the world. An average adult in Indonesia is exposed to 852 commercials a week compared to the world average of 560. This has been driven by the fact that the cost of advertising on TV in Indonesia is the lowest in the region, as well as the growth in private enterprise in the country.

High clutter levels are seen all over the world. They are not restricted to one region, and do not depend on the maturity of the TV market. Indonesia, the U.S., Mexico and China, with astronomical clutter levels of 852, 817, 687 and 671, respectively, have the most cluttered TV environments in the world and, yet, are completely different cultures with completely different TV landscapes.

The clutter in these countries is considerably higher than the global average; for example, in Indonesia, adults are exposed to 52 percent more TV commercials than average.

The impact of this high clutter on consumers has been low involvement with advertising on TV. Consumers hardly pay attention to TV advertising now, and, in fact, change the channel when there is an advertising break. Channel zapping has been fueled by the high clutter of advertising on TV, which had led to a high variation in program viewership patterns. However, Indonesia consumers are not yet negative toward advertising, as in some of the western markets, where consumers have very little tolerance for advertising on TV.