The total spending on advertising will not decline in the
The total spending on advertising will not decline in the
short term, in fact it will grow. In Indonesia the real ad
expenditure growth has been 20 - 25 percent per annum. This is
because most Asian economies are still developing and the service
sector is still growing. Some of the media channels may
experience a decline in advertising spend as more channels become
available. For example advertising in cinema may decline as cost
of production of making ad films for cinema advertising is very
expensive.
What are the most affective advertising media these days?
Word of Mouth is the most effective media. This does not
literally mean one person telling a friend about a brand. It can
be achieved in many ways using new technology such as SMS and e-
mails. The point is if the message is received from someone known
to the consumer, more likely it will be taken seriously.
While TV is still the king for its speed of creating awareness
and reach, there are many niche channels that are more effective
in creating sales. For example beauty parlors have been used
effectively for increasing sales of hair and cosmetic products.
Point of Purchase (POP) advertising is also more effective
now, especially in the modern trade environment and a brand can
swing the purchase in its favour by some interesting advertising