Southeast Asian Nations Post Solid Ad Growth, With One Exception

Indonesia, Malaysia, Singapore and the Philippines all recorded sound growth in ad spending in 2008 despite the global economic downturn.  Meanwhile, ad spending in Thailand dropped 3 percent during the year as political instability took a toll.

INDONESIA

Leading the group was Indonesia, where ad spending increased 19 percent in 2008 over the previous year, and all four quarter showed growth.

Media Outlet	2008 (US$000s)	2007 (US$000s)	% Change
TV	2,868,654	2,522,678	14%
Newspapers	1,499,080	1,165,809	29%
Magazines	182,731	149,715	22%
TOTAL	4,550,465	3,838,202	19%
Source: Nielsen AIS

The top 10 ad spending categories combined represent 77 percent of all main media spending in Indonesia.  The office equipment/computers/communications category led spending in value terms and posted 53 percent growth on a year-to-year basis.   Medicines/pharmaceuticals and toiletries & cosmetics were laggards in the top 10, posting no growth in ad spend for the year. As in other Asian countries, telecom brands dominated the top 10 advertisers, with Excelcomindo – GSM Card leading the way.

MALAYSIA

Malaysia came in second, with ad spending up 12 percent for the year. The fourth quarter did experience a slow-down, with increases at just 2.4 percent versus the same period a year earlier.

Media Outlet	2008 (US$000s)	2007 (US$000s)	% Change
TV	630,125	524,199	20%
Newspapers	960,940	893,587	8%
Magazines	45,435	48,341	-6%
Radio	84,720	70,873	20%
Cinema	7,988	7,659	4%
Outdoor	27,791	31,368	-11%
Other	28,857	17,021	70%
TOTAL	1,785,857	1,593,047	12%
Source: Nielsen AIS

All ten of the top ad spend categories – -which account for 64 percent of all Malaysia media activity – registered gains. Retail, the top category by value, recorded 24 percent growth, while pharmaceuticals posted 32 percent growth.  Financial ads posted the lowest growth of the top ten, eking out just a 2 percent increase.  The three largest advertisers, which represented 57 percent of the total top 10 activity, were telecoms, led by Celcom.

PHILIPPINES

Coming in third was the Philippines, which posted 11 percent growth across all media.  Ad spending remained solid over the year, showing a slight slow-down in the fourth quarter.

Media Outlet	2008 (US$000s)	2007 (US$000s)	% Change
TV	2,730,265	2,454,771	11%
Newspapers	204,525	194,118	5%
Magazines	50,045	41,874	20%
Radio	682,091	531,902	28%
Pay TV	137,560	192,551	-29%
TOTAL	3,804,486	3,415,216	11%
Source: Nielsen AIS

The top ten categories represent almost half of all main media advertising, and is led in value terms by hair shampoos/hairdressing products.  That category, however, showed a decline of 7 percent in ad spending compared to 2007.  The biggest growth – 61 percent – came in the proprietary drugs/other than vitamins and tonics category.  Of the top ten brands advertised in 2008, five were hair care and two were dental hygiene products, with Colgate Maximum Cavity Protection toothpaste leading the way.

SINGAPORE

Moving west to Singapore, ad spending finished 2008 with 7 percent growth, although spending actually declined in the fourth quarter after three previous quarters of consistent growth.

Media Outlet	2008 (US$000s)	2007 (US$000s)	% Change
TV	488,682	454,380	8%
Newspapers	569,053	549,092	4%
Magazines	79,070	81,722	-3%
Radio	101,589	95,871	6%
Cinema	11,025	10,108	9%
Outdoor	145,740	118,414	23%
TOTAL	1,395,160	1,309,585	7%
Source: Nielsen AIS

Entertainment, the top category in value terms, showed 18 percent growth for the year. Education showed the most improvement – 21 percent – while retail was the only declining category in the top ten (-1%).  The leading advertiser was Courts, a retailer, followed by Tiger Beer/Asia Pacific Breweries.

THAILAND

The only country in Southeast Asia to show a decline in ad spending in 2008 was Thailand, which was affected by the slowing economy and civil unrest.  Ad spending was down 3 percent compared to 2007.  Only the second quarter showed any growth, a relatively modest 4.6 percent.

Media Outlet	2008 (US$000s)	2007 (US$000s)	% Change
TV	1,590,906	1,664,587	-4%
Newspapers	531,751	545,994	-3%
Magazines	189,226	203,218	-7%
Radio	245,612	226,393	8%
Cinema	132,356	136,445	-3%
Outdoor	131,112	139,458	-6%
Other	57,707	47,189	22%
TOTAL	2,878,670	2,963,284	-3%
Source: Nielsen AIS

Only two categories of the top ten showed any growth – motor vehicles and non-alcoholic beverages.  The top category in total spent was skin-care preparations, which recorded a 6 percent decline on a year-to-year basis.  Skin care, autos and communications products dominated the top ten brands advertised in the year, with Ponds Facial Skincare Product leading followed by PTT Public Co., a gas company and Toyota pickups.