• Gives Back
  • News
  • Videos
  • Careers
Media sector outlook cover

Media Sector Outlook

Slowing down further

The media market experienced a general slowdown in advertising expenditure starting in the second half of 2014 while continuing economic headwinds weighed down the FMCG sector in 1H15. Growth in ad spending in 1H15 was the lowest in the last decade. This is compared to growth in advertising spending of 12% in 1H14, 25% in 1H13, and 24% in 1H12. Although the main contributor to ad spending still comes from television with an increase of 9% YoY, but the increase was driven only by the increase of rate card rather than the ad volume.

Shifting to online media

Rupiah depreciation has adversely impacted profitability of media’s advertisers, particularly FMCG companies, which are seeing margin pressure. To mitigate this condition, advertisers are focusing on how to save costs by cutting their ad-spend budgets and moving away to cheaper alternative advertising media such as online and direct marketing, which they believe will be more effective. Digital developments are propelling the advertising industry, both in the largest categories and in a myriad of niches, from digital out-of-home to cinema and in-game advertising helped along by even the smallest economic improvement. In fact, digital advertising is soon projected to overtake TV advertising, a development perhaps unforeseen even ten years ago.

Other ArticlesHover img ddcc9cb6fad9fc92085e0b7378fe75423a33096ef8ca980806da756043429085
Fp2

Fund Performance

12

ECONOMIC UPDATE - External trade review - Trade surplus falls to the lowest level since May-23

Drought 800 x 800

ECONOMIC UPDATE - Inflation heats up more than expected

Unnamed

ECONOMIC UPDATE - BoP Review Indonesia’s BoP surplus but CA deficit