RI 2nd top for add expanditure growth in Asia

A'an Suryana, The Jakarta Post, Jakarta

Indonesia recorded the highest growth in advertising spending in Asia, excluding Japan, in the first half of the year, reflecting continued strong growth in the country, a research firm said on Wednesday.

Ad spending reached US$531 million in the first quarter of the year, a 39 percent increase from the same period last year, PT AC Nielsen Indonesia said, adding that the figures covered only ad spending in television and print media.

China recorded the second highest growth of 33 percent, followed by South Korea (19 percent), Malaysia (12 percent), Thailand (11 percent), Hong Kong (10 percent), the Philippines (3 percent) and Singapore (1 percent).

"The figures suggest consumer demands in Indonesia are still strong and the retail sector continues to thrive," said company director of communications and operations Yanti Nisro.

According to Yanti, despite the having the highest growth, in terms of amount of ad spending, Indonesia ranked sixth out of the eight countries surveyed.

China topped the list with a total of $7 billion in ad spending in the first half of the year, followed by South Korea ($2.5 billion), Hong Kong ($2 billion), Thailand ($660 billion) and the Philippines ($657 billion).

With a total ad spending of $531 million, Indonesia's spending was more than Malaysia's ($432 million) and Singapore's ($419).

"The figures are calculated based on the published rate-card by the media companies. In reality, the figure is much lower, as ad discounts and barters were not taken into account," said Yanti.

According to Yanti, three factors contributed to the high growth of ad spending in Indonesia, that is improvement in the local economy, World Cup fever and the operation of five new private television stations in the country.

Advertisement in television grew 32 percent in quantity thanks to the entry of the new television stations.

"The ad spots per week in television increased from 4,016 last year to 5,292 ad spots this year," AC Nielsen said in its media statement.

Public consumption has become the key driver of growth in the country's economy after the economic crisis hit the country in 1997, causing many bankruptcies in the manufacturing sector, scaring away investors from Indonesia. Exports, which grew over the past several years, have slowed down this year.

Several agencies, including the central bank and the Asian Development Bank (ADB), say consumption will slow down in the rest of the year.

However, based on its consumer survey in nine cities of the country, AC Nielsen concluded that the purchasing power of the public had increased.

The survey indicates that consumers are buying retail products at the same rate as they did prior to the economic crisis.

"This is despite the almost 200 percent increase in prices," AC Nielsen said.