TV ads urge impulsive consumption

The Jakarta Post, Jakarta

"My son refused to go to school this morning because his father forgot to buy his favorite snacks," complained Nita, a 29-year- old mother.

She said Naufal, her four-year-old son, saw a new biscuit advertised on television the night before. "He always asks for the things he sees on TV."

Estimating that her family spent about seven hours a day watching television, Nita admitted she was often influenced by the advertisements.

"Sometimes I switch to another brand or buy new products which I don't really need because of the many TV ads," she said.

Nita says she has noticed the frequency of advertising, both on television and in print, has increased during the past few years.

Her observations are backed up by Nielsen Media Research's latest survey, which showed producers spent almost US$500 million on TV advertisements in last year's third quarter, up 49 percent for that period.

The survey says several factors -- including the general elections and the growing number of media -- contributed to the increase in expenditure.

Expenses on TV advertising from October 2003 to September 2004 made up 70 percent, or about $490 million of the total $700 million spent on advertising.

Nielsen reported Indonesia and China were the two Asian countries experiencing the fastest growth in advertising expenditure last year.

"Television is the predominant medium for advertisers because it is widely watched and can reach all market segments," said Iman B. Prasodjo, a sociologist with the University of Indonesia.

An increase in advertisement expenditure did not necessarily lead to an increase of consumption, but it did serve as a trigger, he said.

"The way TV accommodates advertisers' needs makes it a perfect way for capitalists to manipulate consumers, especially the uneducated, in times when their economic conditions are the toughest," Imam said.

The 2005 market update by the Institute for Development of Economy and Finance (Indef) says household consumption dominated the nation's economic growth in 2004 and that consumer loans are likely to increase to finance this consumption.

"If people increase their expenses while their income stays stagnant, they will end up having a pile of burdening debts," Indef director Aviliani said.

But for Nita, consumer loans offered by banks and finance companies are the answer to her dreams.

"I just bought myself a cameraphone on credit," she said happily.

The phone cost her about Rp 3 million (US$328). (003)