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● Television Still Dominates with Total Advertising Expenditures of Rp30.9 Trillion
● Government Institutions and Political Organizations Contribute 12 Percent of Advertising Expenditures Throughout the 2019 Election Campaign Period
Jakarta, 30 April 2019 – Advertising spending in Q1 2019 was relatively stable at 4 percent compared to the same period last year. TV is still dominating with total expenditure of IDR30.9 Trillion, with 8 percent growth compared to the same quarter in 2018, according to the findings of the Nielsen Advertising Intelligence (Ad Intel) released today by Nielsen Indonesia.
The presidential election has impacted advertising trend in several media. In the first quarter of this election year, the biggest portion of advertising spending came from the Government and Political Organizations category with IDR2Trillion (11% growth), followed by Online Services category with a total advertising expenditure of IDR1,9Trillion.
The third biggest advertiser is Hair Care category with a total spending of IDR1.8Trillion. Clove Cigarette category spent IDR1.7Trillion with 29 percent growth. In the fifth place is Instant Food product category which grew 37 percent compared to the same period in the previous year, with a total advertising expenditure of IDR1.5Trillion.
In terms of brands, Mi Sedaap, Counterpain and Gudang Garam Move are brands that still dominated on TV. For print media, Government category became the biggest advertiser, among which are South Sumatra Regional Government, Riau Regional Government and Lampung Regional Government. Meanwhile, radio ads are dominated by Shell, Belimobilgue.co.id and Gulates.
Government and Political Organizations Enlivened the Advertising Expenditure Trend
Throughout the election campaign period (March 24 – April 13, 2019), of the total advertising expenditure, Government and Political Organization contributed a substantial portion of 12 percent with a total advertising expenditure of IDR1.1Trillion. This number increased significantly compared to the election campaign period in 2018 with a total advertising expenditure of IDR429Billion. See Illustration 1
Of the total Government and Political Organization advertising expenditures during the election campaign period, the largest contributors were the President & Vice President Candidates with a total expenditure of IDR206.6Billion, followed by the General Election Commission (KPU) with total spending of IDR93.2Billion. The third largest advertiser in this category was Legislative Candidates whose total spending reached of IDR92Billion. In the fourth and fifth places there were Partai Persatuan Indonesia (Rp60.7Billion) and Partai Solidaritas Indonesia (Rp51.5Billion).
The General Election Received Positive Response from TV Viewers
The Presidential Election (Pilpres) Debate which was held 5 times by the General Elections Commission (KPU) gained more viewers than the debate aired on television in the previous 2014 Election period. Results of Nielsen TV Audience Measurement (TAM) revealed that in addition to more TV stations broadcasting Presidential Election Debate events in 2019, this year’s Presidential Election Debate also gained audience reach of 67.9 percent, which is bigger than the one in 2014 (62.9%).
In terms of rating, the five debates of the 2019 Presidential Election gained a much higher collective rating number because there were more number of TV stations that are broadcasted the debate program this year compared to 2014. The highest rating in 2019 was in the second debate, i.e. the Presidential Candidate Debate Jokowi versus Prabowo at 18.8 percent. In fact, within 2 days after the Election Day on April 17 2019, programs related to the General Election still gained a fairly high rating of 13.2 percent in April 18 and 13.8 in April 19.
“Throughout the first quarter of 2019, Government and Political category’s ad contributed 5.5%, while in the election campaign period that is allowed by the KPU which was March 24 to April 13, 2019, political party ad reached 12% of total advertising spending. This shows that political parties still believe in the strength of mass media in building awareness and branding.” said Hellen Katherina, Executive Director Nielsen Media. “Besides, the high rating of the election related programs also showed that TV viewers in 11 cities are very enthusiastic about the Elections from the beginning of the process until post election day. We can say that this year people are more engaged with the General Election.”
Nielsen TAM studies in 11 cities also found that there is a tendency for viewers to watch TV longer on Election Day, which is an average of 5 hours 30 minutes (+12% versus on normal days). This tendency is also driven by the Quick Count programs that are broadcasted throughout the election day. See Illustration 2
In terms of viewer profile, on the Election Day the viewership from voters also increased across all age ranges and socioeconomic classes compared to normal days. In terms of audience age, the highest rating came from 50+ years old viewers (17.7%), while the viewers from Middle Class were the highest with the rating of 14.3 percent.
Illustration 1 Top 10 Advertiser for Government & Political Organization Category
Source: Nielsen Ad Intel Q1 2018-2019 Commercial product ad spending on national TV based on gross rate card (doesn’t calculate discount, promo, bonus, etc.), in Billion
Illustration 2 Television Audience on Election Day 2019
Source: Nielsen TV Audience Measurement 10 April 2019 vs 17 April 2019 viewership
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ABOUT NIELSEN 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. Ad spending figures are based on the gross rate card, without calculating discounts, bonuses, promos, package prices, etc.
ABOUT NIELSEN TAM
Nielsen TAM in Indonesia measured viewings of all national television on more than 8,000 people aged 5 years and over in 11 cities in Indonesia (Jakarta, Bandung, Yogyakarta, Semarang, Surakarta, Surabaya, Denpasar, Medan, Palembang, Makassar and Banjarmasin). The measurement results are stated in rating, share and index values.
Nielsen Holdings plc (NYSE: NLSN) is a global measurement and data analytics company that provides the most complete and trusted view available of consumers and markets worldwide. Our approach marries proprietary Nielsen data with other data sources to help clients around the world understand what’s happening now, what’s happening next, and how to best act on this knowledge. For more than 90 years Nielsen has provided data and analytics based on scientific rigor and innovation, continually developing new ways to answer the most important questions facing the media, advertising, retail and fast-moving consumer goods industries. An S&P 500 company, Nielsen has operations in over 100 countries, covering more than 90% of the world’s population. For more information, visit www.nielsen.com.
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