News Release 29 July 2010

Telco spending increase 50% and remains the highest in all category
Adspend in World cup has increased June spending by 13%
TV Viewers increased 44% during World Cup

Advertising spending increased 29% this first half compares to 2009, totaling to Rp. 28.5 trillion. Though the trends for the past 3 years always show increase, this year’s figure is the highest.

Spending on Television reaches more than Rp. 17 trillion and dominates the advertising spending with more than 60 percent share. TV also enjoyed the highest 35 percent growth from previous year, this is driven by spending on two world cup broadcasters in June.

Newspapers come at second place with almost Rp. 10 trillion spent on this print media and contribute to 35 percent of spending share. Newspapers experienced 21 percent growth from last year. Other monitored print media: Magazine and Tabloid grab the rest 3 percent, with the total of Rp. 973 billion.

“The high increase of advertising spending in this first half is not only mainly driven by world cup, but it is also driven by Telecommunication industry’s advertising spending that shows a significant increase from last year,” said Irawati Pratignyo, Managing Director of Nielsen Audience Measurement.

Telecommunication remains the highest spender category in all media type with total spending of Rp. 2.6 trillion in first half 2010, increased 50 percent from 2009. This reflects to the list of high spenders, where 9 of 15 are telco providers, Telkomsel (All Sim Card) and XL are the top 2 highest spenders with total spending of Rp. 260 billion and Rp. 250 billion, respectively.

Government and Political Category is still spending high with Rp. 1.3. trillion, though decreasing 36%. Local government election mainly drives this category with spending of Rp. 244 billion in total.

Telecommunication is the biggest spender category with four of five top spenders are from this category. Teasers (products that do not have brand name) come as the highest spender as broadcasters showing teasers for world cup. Other high spenders on TV is Gudang Garam, the onlythe only cigarette brand within the big 5, increased its adspend by over 200% compared to previous first semester with Rp. 174 billion. The increment is due to the biggest event of the year, World Cup 2010.

Government and Politics, as previous year, is the highest spender in newspapers with total spending of Rp. 1 trillion, through dropping 19 percent from last year. The spending of this category is due to spending of local government election which the highest spender in newspapers. Telco spend in newspapers increases 45 percent from last year with Rp. 882 billion. Other big spenders in newspapers also show some motorcycle brands with total spending of Rp. 562 billion.

Media and Production House remains the highest spender category with Rp. 85 billion. Telco also share some of its advertising budget to this media, by spending Rp. 77 billion increased 14% from last year. In the top spenders, aside from Telco providers and manufacturers, hair care brands also are among the top spenders.

By June, World cup event has increased the adspend by 13% compared to previous May 2010. Within the period of June 11th (opening ceremony) until 12 July only, advertising spending reaches the total of Rp.3.9 Trillion and 370 thousand advertisement spot aired in total Television. And over that period, the most advertised product is Gudang Garam International Filter Clove Cigarette with 73 billion and 2.496 spot number in total TV stations within only a month!

TV stations with most commercial spot aired is RCTI with nearly 39 thousands spot of commercials. In RCTI, we can see that Gudang Garam’s has the most aired commercial with its intersport. It has 977 of 5 second of commercial, 343 of 5 second sponsorship commercial. While teaser intersport (without mentioning Gudang Garam brand) consist of nearly total 600 of 5 seconds advertising spot number.

In the official broadcast channels, RCTI and Global TV, the World Cup has boosted viewing level as high as 44% to 1.9 million people. The audience increase also impacted the total television viewing to 9% or up to 6.4 million people.

When 2010 World Cup was broadcast, viewers whom were men 15+ shown the biggest increase or up to 80% (833 thousand). “World Cup increased TV viewing in all audience segments, including children and adults. The number of men viewers surpassed women who usually dominate the TV viewing; and it is probably because football/soccer is more identified to men,” said Irawati.

The increase in TV viewing for World Cup 2010 was contributed by all matches; with the biggest contribution came from the quarter final matches from favorite teams: Netherlands vs. Brazil, Uruguay vs. Ghana, Argentina vs. Germany, and Paraguay vs. Spain which were broadcast at night time to early morning in RCTI. The games attracted the most viewers with an average of 3.5 million people or an average rating of 7.1 % (7.1% of TV population watched the quarter final). This is six times bigger than regular program broadcast between 9 pm to 4 am. In particular Argentina vs. Germany, which broadcast between 8 to 11.30 pm, attracted the highest number of audience of 5.8 million people.

Meanwhile, final match between the Netherlands and Spain, which was broadcast live in early morning in RCTI and Global TV, reached an average of 2.4 million people only. However, people spent longer time to watch the final match than the quarter final; (1 hour 7 minutes for watching the final match compared to average 1 hour for watching the quarter final).

In general, 65% of 2010 World Cup viewers were male. Fifty-six per cent of those who watched the games were above 30 years and 54% were workers. Comparing between cities, the highest TV viewers were found in Makassar (34.4%) and Bandung (31%). “The figure shown that Makassar and Bandung viewers were the most enthusiastic in watching World Cup 2010; and it makes sense since Makassar and Bandung are known for their loyal soccer fans,” said Irawati.

Compare with other countries, Indonesia TV viewers ranked the fourth during finals (the Netherlands vs. Spain) with 28.9% of TV population watched the game and ranked the first during quarter finals on July 3 (Uruguay vs. Ghana and Argentina vs. Germany) with 47.3% of TV population watched those matches. These numbers were quite high, although Indonesia did not have any team playing in the World Cup.

Advertising Spending data is gathered from Advertising Information Services data that monitors Indonesia’s advertising activities. It covers 24 TV stations, 95 newspapers and 163 Magazine and Tabloids. All figures are based on gross rate card, without calculating discount, promo, etc.

Nielsen Audience Measurement conducted TV Audience Measurement for 10 major cities in Indonesia (Jakarta, Surabaya, Medan, Semarang, Bandung, Makassar, Yogyakarta, Palembang, Denpasar, and Banjarmasin) with TV population of 49,525,104 individuals aged above 5 years old. The measurement is electronic using meter technology with GSM & GPRS overnight data polling. Data is available on a daily basis for minute by minute TV viewing. Result of this survey covers 10 major cities in Indonesia only and does not represent Indonesian population. For more information, please visit www.agbnielsen.com.

The Nielsen Company provides marketing and consumer information on “what people watch” and “what people buy”. Nielsen have the leading global market positions for marketing and consumer information, television and media measurement, online intelligence, mobile measurement, trade shows and related proprietary. The privately held company is active in approximately 100 countries, with headquarters in New York, USA. For more information, please visit www.nielsen.com.




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