This unprecedented time also pushed brands to adjust their communication style in their ads, to stay relevant - including greater use of animation said, Nielsen.By Robert Cameron - Aug 26, 2020
According to new data from Nielsen Advertising Intelligence, total advertising spending in Indonesia is showing a rebound entering the third quarter of 2020, after experiencing pressure in the second quarter. Total advertising expenditure in January-July 2020 reached IDR. 122 trillion ($USD8.3 billion).
Entering the second phase of PSBB social distancing policy transition in Jakarta, “brand owners seem to have gained their confidence back to spend” said Nielsen with the July adspend number increasing by 17% from the previous month reaching IDR 18.3 trillion ($USD 1.25 billion).
Television continues to dominate with 72% of the total advertising, at more than IDR 88 trillion. Followed by digital, taking 20%, with more than IDR 24 trillion. While print media owned 8%, with more than IDR 9.6 trillion, followed by radio advertising which reached IDR 604 billion.
Regarding product category, Online Services is still the biggest spender, with a total advertising expenditure of IDR 2.5 trillion (+73% vs July 2019), followed by the Facial Care category, where Nielsen reports an almost double increase in July, with total advertising of IDR 1.4 trillion. Haircare category had IDR 1.1 trillion (+ 51%).
For TV, Nielsen said in a release “ad spots in commercial breaks are not the only way to communicate with the consumers,” adding that “There is another type of ads, which is integrated with the in-program (running text, digital embed, superimpose, etc). This ad is considered to be another creative and subtle way of reaching the consumers.”
Starting in 2017, Nielsen started monitoring in-program ads and it said that different product categories are choosing this type for reaching the consumers. Moreover, in May 2020, it reached its peak, when the commercial break type ads were stagnant.
While in Print and Radio, Nielsen reports that the spending categories are different from what detected on TV. For Print, Medical Equipment and Financial or Insurance categories still preferred this media to advertised. While for Radio, the spending categories are varied, from food, drink, and even cough medicine products.
According to Nielsen, “This unprecedented time also pushed the brand owner to adjust their communication style in their ads, to stay relevant. They apply it in various ways, some are using animation in their ads, others are more into educating the consumers to stay healthy and clean, while some are showing their caring side by giving donations (fund or medical equipment).
Using animation in an ad is relevant, added the report, noting the limitation to filming in both indoor and outdoor locations.
“Adapting to the pandemic situation and this transitional period, animation can be a good choice to overcome the limitations of budget and shooting capacity while still prioritizing health issues in the messages conveyed. In addition, some brands prefer program/brand integration ads in order to get higher audience reach, considering program rating is usually higher than commercial break rating, ” said Hellen Katherina, Executive Director of Nielsen Media Indonesia.
Nielsen Advertising Intelligence currently monitors 15 national TV stations, 102 newspapers, and 46 magazines and tabloids along with 200 websites. Radio advertising spending is also covered (104 stations) by collecting Radio commercial logs. Ad spending figures are based on the gross rate card, without calculating discounts, bonuses, promos and package prices.
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