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Nielsen: E-commerce Leads Growth in Ad Spending

BY :TABITA DIELA

NOVEMBER 19, 2015

Jakarta. Indonesia's burgeoning E-commerce sector led the growth in advertising spending for television and print media, thanks to the rapid rise of tech start-ups, data from global market researcher Nielsen showed.

Ad spending from e-commerce companies grew 50 percent year-on-year to Rp 2.26 trillion ($163.88 million) in the January-September period, according to the Nielsen report released on Wednesday.

In comparison, advertisements for toddler formula increased 40 percent, followed by clove cigarettes with 30 percent growth.

“E-commerce is rising, reflected by enormous advertising expenditure growth of Traveloka and Tokopedia,” Nielsen said in a presentation sent to the Jakarta Globe.

Online travel booking service Traveloka saw its expenditure for advertising rise 702 percent to Rp 547 billion.

Meanwhile, e-commerce site Tokopedia posted a nearly 17-fold growth to Rp 547 billion.

The report analyzed ad spending on television, newspapers, tabloids and magazines, which overall increased 3.23 percent year-on-year to Rp 86.2 trillion.

Advertising from the government and political organizations are still in the lead in terms of value, despite a 15 percent decline to Rp 4.58 trillion.

Television continues to be the favored medium for advertising, raking in Rp 62.03 trillion to show an 8 percent growth. Magazines and newspapers, meanwhile, saw a respective 13 percent and 6 percent decline in ads.

Indonesia is home to 88.1 million internet users, according to 2014 data from the Indonesian Internet Service Providers Association (Apjii), up from 71.2 million users recorded in the year before.

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