Ad Spends in Indonesia Grew by 13% to US$18.5B, Nielsen Reports

TheIndonesia.id - A newly published report from Nielsen showed that up to Rp259 trillion (US$18.5 billion) was spent on advertising in Indonesia in 2021, or a 13 percent increase compared to the figure in 2020.

Market research firm Nielsen revealed that brands spent more money on advertising in 2021 than in 2020, with the total amounted to up to Rp259 trillion. Executive director of Nielsen Indonesia Hellen Katherina said the finding showed that brands continued to be confident to optimize their advertising amid the ongoing COVID-19 pandemic.

Television was the most preferred channel for advertising and made up 78.2 percent of the total spending, and it was followed by digital channels (15.9 percent), print media (5.5. percent), and radio (0.04 percent).

“Television continued to be the main advertising channel because it can reach a large audience at the same time. Meanwhile, the ease of customization in digital channel also helped the spending [in that category] to also grow,” Katherina explained on Monday, March 14, as reported by Antara.

Nielsen also reported positive growth in nine out of 10 categories: online services, facial care, hair care, coffee and tea, snacks, clove cigarettes, seasonal condiments, liquid milk, as well as instant food and noodles.

Ad spending in online services in 2021 grew by 67 percent to Rp42.8 trillion, but spending in government and political organization decreased by four percent because election period hadn’t started.

Nielsen also studied ad spending in social media and non-social media channels and found that, in the two categories combined, online services and telcos were the biggest spenders.

Meanwhile, financial institutions, banking, e-channel, retailers, and software companies were the top spenders in social media channels, while facial care, beverages (carbonated, liquid milk, and health drink) and cigarettes spent more in non-social media channels.