digital ad spend contributes 6% of the total ad spend

 

Jakarta, 18 September 2019 – Advertising spending on TV, Print and Radio in the past 12 months (July 2018 – June 2019) reached RP156 Trillion, equals with two percent increase. The growth is lower than that of the same period last year which was nine percent. Despite experiencing slow growth, TV still dominated with 83% share. This year, TV ad spend grew six percent while last year the growth reached 13%. Those numbers are according to Nielsen Advertising Intelligence (Ad Intel) released today by Nielsen Indonesia.

In Q3 2018, Nielsen added Digital in its ad spend measurement, and since then the Digital ad spend has contributed RP9.3 Trillion. Therefore, in total, the ad spend including Digital has reached Rp165 Trillion where Digital contributed 6% of the total number. Those are according to the findings of Nielsen Advertising Intelligence (Ad Intel) released today by Nielsen Indonesia.

Nielsen Digital Ad Intel monitors advertisements both in Display and Video formats, in various types of devices such as laptop, desktop and mobile. Nielsen Digital Ad Intel study shows that 52% of digital advertisements are delivered in the form of Display and the rest in the form of Video (48%).

Online Services is the biggest category that advertised in Digital media, followed by Communication Equipment &Services. The third biggest category is Personal Vehicle. Hair Care and Liquid Milk categories followed respectively.

In terms of brands, 9 out 10 brands that advertise in Digital media came from Online Services and Communication Equipment & Services. Vivo, Samsung and Tokopedia are dominating in top three, followed by Hilo Chocolate Banana and Oppo.

Of the three biggest advertisers, Samsung was the brand that allocated budget for Digital advertising the most, i.e. 42%, with 444 creative copylines. Tokopedia allocated 36% of its advertising budget in Digital with 17,351 creative copylines. Meanwhile, Vivo with 26% portion of digital advertising has 334 copylines.

In terms of the formats, Video is preferred by the brand owners. 81% of Vivo advertisement are in Video format, and only 19% in Display format. Similar with Vivo, Samsung placed 87% of its advertisements in Video format. Different from the former two brands, Tokopedia put more balance with 54% in Display and 46% in Video format.

“As consumers spend more time on the internet – the time spent has significantly increased from around 2,5 hours to more than 3 hours per day – in the past three years, Digital media has been considered by brand owners as one of the important options to spend their advertising budget.” ,”said Hellen Katherina, Executive Director of Nielsen Media. “As a ‘rookie’, Digital media has been able to show its existence in terms of advertising spending, in the midst of TV domination.”

Read in Bahasa Indonesia

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ABOUT NIELSEN DIGITAL AD INTEL

Ad spending information is taken from Ad Intel data that monitors Indonesian advertising activities. In 2018, ad monitoring includes 15 national TV stations, 98 newspapers and 65 magazines and tabloids and 200 websites. Ad spending figures are based on the gross rate card, without calculating discounts, bonuses, promos, package prices, etc.