Out-Of-Home Media as Marketing Strategy

Jakarta, 26 June 2019  –  More than two thirds (67%) of consumers spend
4 hours and 33 minutes outside home on weekdays. In the Jabodetabek area the
time is even higher, where consumer spends an average of 4 hours 45 minutes.
When doing activities outside the home, the average consumer spends 1 hour and
18 minutes on the trip. According to the findings of Nielsen Consumer Media
& View, one of the studies conducted by Nielsen Media in 11 cities in
Indonesia.

The findings show a great potential opportunity for brand
owners to maximize the use of outdoor media in promoting their products. The
Nielsen CMV study also shows the high coverage of outdoor media, which reaches
66%. Judging from the type, the Static Outdoor format reached the highest reach
where 64% of consumers stated that they saw advertisements in the media in the
past week as much as 10 times. The next thing that attracts consumers’
attention is the type of outdoor media that “moves” like advertising on public
transportation facilities (45%) and in private cars (32%); and 16 percent of
consumers stated that they saw advertisements installed inside buildings
(offices or shopping center). (Picture 1)

The results of outdoor media coverage are certainly different from one
city to another. When compared with Jabodetabek area, the reach of advertisements
on public transportation facilities in Medan and Makassar is higher, reach more
than 50 percent. In Makassar, advertisements placed inside the building reach
more than 30% of consumers compared to Jabodetabek area.

“From our analysis of three cities (Jabodetabek, Medan and
Makassar) we see that there are differences in consumer preferences.” Said
Hellen Katherina, Executive Director of Media, Nielsen Indonesia. “For
example, in addition to the static outdoor format, advertisements on outdoor
media can also reach consumers in Medan and Makassar. Meanwhile, especially in
Makassar, advertisements in the building get attention from consumers,
“Hellen explained.

In
terms of consumer profiles, there are also differences between those who see
outdoor media advertisements (other than inside buildings) and those in the
building. Advertisements in buildings are seen more by women aged 10-29
years-old from Upper social class. Meanwhile, advertisements in outdoor media
besides those inside the building, are mostly consumed by men with an age range
of 30-49 years-old.

Nielsen Out of Home Site Counting

The
results of Nielsen’s calculations for the number of outdoor media points in 11
cities in Indonesia in 2019 show that there are more than 3000 points and 33
percent are in the Jabodetabek area. Billboard dominated with 43 percent
followed by Baliho at 18 percent and the next 14 percent in the form of LEDs.

Cigarettes are the most advertised
product category in outdoor media with more than 1,000 spots, followed by
Online Services with 600 spots and Telecommunications with more than 300 spots.
(Picture 2). Djarum, Gudang Garam and HM Sampoerna are the biggest advertisers
for the Cigarette category. Meanwhile, Tiket.Com, Grab and Gojek dominate the
Online Services category, and in the Telecommunications category there are XL,
Samsung and Telkomsel.

“The
proportion of consumers who spend quite a lot of time outside the home as well
as diverse forms of out-of-home promotional media require industry players not
only to be smart in choosing outdoor media, but also to be more creative in
presenting forms of out-of-home media promotion,” Hellen concluded.

Picture 1: Reach & Frequency of Out-Of-Home Media

Picture 2: Top Category in Out-Of-Home Media

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ABOUT NIELSEN CONSUMER MEDIA & VIEW (CMV)

The CMV survey is a syndicated survey conducted by Nielsen for + 17,000 people aged 10 years and over in 11 cities in Indonesia (Jakarta, Bandung, Jogjakarta, Semarang, Surakarta, Surabaya, Denpasar, Medan, Palembang, Makassar and Banjarmasin). The information contained in it includes demographic, psychographic data, media usage, and up to more than 200 categories of product usage.

ABOUT NIELSEN OUT-OF-HOME (OOH) MEASUREMENT

Calculating the number of OOH media site  in 11 Nielsen Media cities. Harmonized data, by having an aligned information with the categorization and product naming from Nielsen Ad Intel. The survey was conducted in April-Mid period in May 2019 .