RI 2nd top for add expanditure growth in Asia

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.