ASEAN KEY DESTINATIONS
RI leads advertising spending growth in Asia-Pacific region
Indonesia will continue to lead the Asia-Pacific region in growth in spending on advertising at least until next year, with an expected growth rate of about 15 percent, information company Nielsen and the International Advertising Association (IAA) have predicted.
In the previous quarters, Indonesia showed the fastest growth, around 15 percent, in net advertising spending in the region, followed by China with 12 percent, according to presentation material at the Asia Pacific Media Forum (APMF) on Friday.
“Indonesia still has a long way to go before it catches up with the rest of the world, but spending is heading toward international levels,” Faris Abouhamad, chairman and world president of IAA Global, said at the APMF on Friday. “I would say that in the fourth quarter, and maybe into next year, we will continue to see this level of growth,” he added.
Analysts have said that while demand for advertising in the first half of the year was buoyed by election-related spending, budgets have generally been pushed back to the second half of the year.
In addition, advertising spending is expected to be given a boost by the inauguration of the new government next month, as there are high hopes over economic certainty and reform.
“Under the new government, the country can make up for what it’s missed out on, and generate new momentum,” Abouhamad said.
“This [the new government] should obviously be a positive sign for advertisers, media owners and investors. Everybody is waiting for the new economic program, waiting to become part of the new economic chapter,” he added.
Paul Fisher, managing director (media) of Nielsen Asia Pacific, was similarly optimistic that there would be renewed consumer positivity in Indonesia, creating sustained growth in the remaining period of this year.
RI shows fastest growth of around 15% in ad spending in the region, followed by China’s 12%
Other Asia Pacific countries grow slower at single digit
Advertisers see bright outlook on RI ad industry as new govt seen as a positive sign
“We would like to see the 15 percent growth continue, especially in this period after the elections, which tend to have a dampening effect on advertising and consumer sentiment. There needs to be a strong basis on which growth can continue. We hope that there will be greater investment in advertising,” he said.
Seventy-eight percent of Indonesians consider television as the most relevant advertising medium, followed by social media at 48 percent, according to a survey conducted by the APMF and YouGov.
While Indonesia and China have been growing rapidly, elsewhere in the Asia-Pacific region, ad spending has grown more slowly, with Singapore, Malaysia, Japan, South Korea, Australia and New Zealand all recording single-digit growth.
“It’s been a challenging year for many businesses in the industry. We’re hoping that advertisers will advertise more in the fourth quarter, and that we can finish this year with stronger growth,” Fisher said.
Similarly, the IAA estimated that after slow growth in ad spending earlier this year, the market in the region will swing back to a normal level in the fourth quarter.
Improved connectivity, better government support, population expansion and higher education levels will drive higher ad spending, according to the association.
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