Indonesia advertising dead or alive june2013
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Indonesia advertising dead or alive june2013 Indonesia advertising dead or alive june2013 Presentation Transcript

  • Indonesia’s Advertising – Dead or Alive Harris Thajeb June 2013
  • Indonesia’s Advertising Expenditure
  • Adex Forecast 2012 vs. 2013 0 20,000,000 40,000,000 60,000,000 80,000,000 100,000,000 120,000,000 140,000,000 2007 2008 2009 2010 2011 2012* 2012** 2013*** 43,494,275 50,167,960 58,316,954 69,717,542 87,231,612 107,355,039 99,444,038 124,531,845Rp 000,000 +19.5% +16.2% +15.3% +14% *) Actual Adex 2012 **) 2012 projection based on Zenith Report ***) 2013 projection based on www.emarketer.com +25.1% Adex Growth projection 2011 to 2012 = +14% - while the actual Adex increased 23.1% (8% higher than projection) Adex Growth projection 2012 to 2013 = +16% Actual Adex Source: Nielsen Media Index (only covered TV, Newspaper, Magazine & Radio), 2007-2012 +16% +23.1%
  • 2007 2008 2009 2010 2011 2012 RADIO 132,176 159,566 119,593 131,023 102,239 75,201 MAGAZINE 1,462,933 1,786,623 1,935,982 2,132,816 2,348,637 2,508,427 NEWSPAPER 11,225,138 14,563,473 17,921,640 21,452,387 26,126,469 30,040,592 TV 30,674,028 33,658,298 38,339,739 46,001,316 58,654,267 74,730,820 0 20,000,000 40,000,000 60,000,000 80,000,000 100,000,000 120,000,000 Rp 000,000 (67.2%) (30.0%) ( 2.69%) ( 0.12%) (66.0%) (30.8%) ( 3.1%) ( 0.2%) Adex Trend by Media 2007 - 2012 (69.6%) (28.0%) ( 2.3%) ( 0.07%)
  • Gross Adex 2012 by Media Type http://metrotvnews.com/read/news/2012/01/06/77669/Televisi-Serap-60-Persen-Belanja-Iklan Magazine s / Tabloid 2.7% Newspap er 30.0% TV 60.0% Radio 0.2% Digital, Ci nema & Outdoor 7.1% Combining data for mass media & digital/cinema/outdoor media: • TV was still account for the largest share by 60%, followed by newspaper at 30% • Radio 0.2% • Magazine & tabloid 2.7% • The rest 7.1% went to digital (mobile/internet), cinema, and outdoor media
  • Adex Spending by Industry – 2012 2011 INDUSTRY 2012 Share Spending # # Spending Share 16.50% 14,368,352 1 Non Commercial Advertisement 1 19,742,426 18.39% 10.70% 9,316,610 2 Toiletries & Cosmetics 2 12,629,156 11.76% 9.90% 8,607,635 3 Beverages 3 10,720,132 9.99% 7.90% 6,900,515 5 Food 4 9,520,293 8.87% 7.10% 6,210,866 6 Corporate & PSA 5 8,230,612 7.67% 8.20% 7,121,834 4 Office Eqpt, Computer, Communication 6 6,434,373 5.99% 6.30% 5,493,228 7 Automotive & Accessories 7 6,046,168 5.63% 4.80% 4,159,523 8 Medicines/Pharmaceuticals 8 4,914,845 4.58% 3.30% 2,850,814 10 HH Products/Supplies 9 3,795,509 3.54% 3.50% 3,027,221 9 Transportation, Travel, Recreation 10 3,128,038 2.91% 3.00% 2,625,761 11 Retail 11 2,935,403 2.73% 3.00% 2,625,344 12 Financial 12 2,916,687 2.72% 2.40% 2,098,266 15 HH Equipment & Appliances 13 2,756,497 2.57% 2.80% 2,465,767 13 Personal Services 14 2,606,138 2.43% 2.50% 2,187,253 14 Cigarettes 15 2,322,593 2.16% 2.10% 1,802,030 16 Media & Promotion 16 2,060,210 1.92% 1.90% 1,677,122 17 Property 17 2,056,954 1.92% 1.80% 1,561,438 18 Education 18 1,895,450 1.77% 0.90% 742,815 20 Apparel / Personal Accessories 19 921,784 0.86% 0.90% 802,852 19 Industrial Product 20 911,118 0.85% 0.70% 586,367 21 Baby & Maternity 21 810,651 0.76% Similar rank Increase rank Decrease rank
  • The Rising Middle Class in Indonesia
  • World Bank reported in 2011 that 56 % of Indonesia’s 237 million population is middle class – which is around 134 millions of people This number increased by 45 million people compared to year 2003 Source: Kompas, 19 Dec 2011, based on data from Euromonitor, World Bank Spectacular Growth of Indonesia Middle Class (based on daily spending per capita) 0.3 1.31.3 5.03.9 11.7 32.1 38.5 2003 2010 (% of population) (% of population) 10-20 US$ 6-10 US$ 4-6 US$ 2-4 US$ World Bank classified middle class by “daily spending of US$ 2 – US$ 20 ”
  • SES Class in INDONESIA (2012) Total population: 240,695,000 Source: Single Source, PT. Roy Morgan Indonesia, 2006 - 2012 3.8% 4.8% 5.7% 7.3% 11.5%6.0% 5.8% 7.8% 12.1% 15.0%13.0% 14.7% 17.9% 20.3% 23.8%28.8% 34.8% 30.3% 26.6% 25.8%23.5% 22.6% 19.7% 18.8% 14.3% 24.9% 17.3% 18.6% 14.8% 9.7% 0% 20% 40% 60% 80% 100% 2008 2009 2010 2011 2012 E D C2 C1 B A Classification based on Monthly HH Routine Expenditure There were 49.5% of C class in Indonesia in 2012, growing significantly from 41.7% in 2008
  • According to BPS, Indonesia economic structure showed that consumption gives high contribution to National GDP, 1.e. around 70% Source: www.bps.go.id Consumption Contribution to national GDP 69 % 71 % 69 % 68 % 2000 2005 2008 2010 This middle class has their own style on spending. World Bank recorded that in 2010, this middle class spent Rp 113.4 trillion on fashion Middle Class Spending Type 83,734,326 136,891,985 44,824,267 181,804,859 113,454,245 194,493,639 59,278,032 238,665,901 2007 2010 Fashion Goods & service Shopping abroad Transport ation
  • Indonesia Segmentation 2012
  • Segment 2 CONVENTIONAL FAMILY LIFE 2005 2012 34.7% 24.2% Average Age 35.5 years AB 15.6% C 50.2% DE 34.2% SOCIAL CLASS 50% Blue Collars 34% Housewives 5% Small Business Owners 5% White Collars OCCUPATION 74.7% 90.0% 6.0% 42.2% 15.0% 4.4% 9.0% 3.4% 44.2% Visiting Modern Channel in past 4 Weeks Shopping Mall Supermarket/ Hypermarket Minimart 17.9% 15.1% 23.9% • Core of “middle Indonesia” with value centered in personal and family (and children) life. • Seek financial security, worry for debt, but dream to improve standard of living (own home, vehicle, visit malls) • Play safe at work and in general life • Look for good, solid and reliable product for value for money – mix branded and store brand they trust most Internet Penetration 11.7% More than once a day 29% Once a day 10% A few times a week 31% Once a week 10% Less often than once a week 19%
  • Segment 2 CONVENTIONAL FAMILY LIFE 2005 2012 34.7% 24.2% 98% 64% 48% 46% 42% 34% 23% 24% 18% 19% 18% 16% 10% 4% 9% 8% 9% 6% 6% 4% 6% 4% 4% 2% 2% 0% 0% 0% 50% 100% 150% 200% 250% 300% 0% 20% 40% 60% 80% 100% 120% TV Streetbanner Poster Billboard Cigaretteshop Neonsign Wallpainting Flyer Newspaper Radio SMSinhandphone Instore Publictransportation Internet Busshelter Insidemall Sampling Sparewheelcover Event Magazine Railwaystation Balloon VCD/DVD Tabloid Directmail Cinema Outdoorcinema Segment Exposure Index to Total Population Advertisement Seen in The Past 7 Days Exposure Index
  • Segment 3 VISIBLE ACHIEVEMENT 2005 2012 7.9% 17.9% Average Age 37.2 years AB 44.6% C 48.2% DE 7.2% SOCIAL CLASS 28% Housewives 27% Blue Collars 18% White Collars 15% Small Business Owners OCCUPATION 90.9% 90.8% 11.6% 75.6% 37.1% 14.4% 28.7% 7.1% 52.8% Visiting Modern Channel in past 4 Weeks Shopping Mall Supermarket/ Hypermarket Minimart 29.8% 32.8% 37.2% • Success and confident in their own abilities & position • Retain traditional values about home, work and society – work hard to provide family with high quality environment • Practical, realistic, and individualistic, do not need to impress anyone • Look for quality and value for money, not necessarily something that is expensive Internet Penetration 24.4% More than once a day 27% Once a day 16% A few times a week 36% Once a week 7% Less often than once a week 14%
  • Segment 3 VISIBLE ACHIEVEMENT 2005 2012 7.9% 17.9% 99% 69% 51% 55% 42% 33% 25% 22% 32% 18% 21% 19% 13% 9% 10% 12% 10% 9% 6% 7% 4% 5% 4% 5% 2% 1% 1% 0% 50% 100% 150% 200% 250% 300% 0% 20% 40% 60% 80% 100% 120% TV Streetbanner Poster Billboard Cigaretteshop Neonsign Wallpainting Flyer Newspaper Radio SMSinhandphone Instore Publictransportation Internet Busshelter Insidemall Sampling Sparewheelcover Event Magazine Railwaystation Balloon VCD/DVD Tabloid Directmail Cinema Outdoorcinema Segment Exposure Index to Total Population Advertisement Seen in The Past 7 Days Exposure Index
  • Segment 1 LOOK AT ME 2005 2012 21.7% 24.8% Average Age 19.8 years AB 29.6% C 50.2% DE 20.3% SOCIAL CLASS 50% Students 23% Blue Collars 10% Not working 7% Job Seekers 7% White Collars OCCUPATION 91.2% 91.3% 7.5% 57.9% 23.1% 7.7% 21.5% 1.4% 47.5% Visiting Modern Channel in past 4 Weeks Shopping Mall Supermarket/ Hypermarket Minimart 27.0% 23.4% 30.0% • Teenager looking for fun and freedom • Fashion & trend conscious – like to be seen as “outrageous” and taking part in “cool” and “hip” activities • Very conforming to peer group & active socially Internet Penetration 57.5% More than once a day 25% Once a day 11% A few times a week 38% Once a week 11% Less often than once a week 14%
  • Segment 1 LOOK AT ME 2005 2012 21.7% 24.8% 98% 69% 54% 54% 43% 35% 25% 24% 25% 21% 26% 19% 13% 25% 12% 13% 10% 8% 9% 7% 6% 6% 6% 4% 3% 1% 1% 0% 50% 100% 150% 200% 250% 300% 0% 20% 40% 60% 80% 100% 120% TV Streetbanner Poster Billboard Cigaretteshop Neonsign Wallpainting Flyer Newspaper Radio SMSinhandphone Instore Publictransportation Internet Busshelter Insidemall Sampling Sparewheelcover Event Magazine Railwaystation Balloon VCD/DVD Tabloid Directmail Cinema Outdoorcinema Segment Exposure Index to Total Population Advertisement Seen in The Past 7 Days Exposure Index
  • Indonesia Digital Landscape
  • ASIA has the BIGGEST number of internet users in the world. WORLD STATISTICS OF INTERNET USERS
  • Internet Penetration 2009-2012 Base: Single Source, PT Roy Morgan Indonesia, 2009-2012 2009 2010 2011 2012 National 5.0 8.1 17.8 24.4 Urban Area 8.1 11.7 23.9 31.6 Rural Area 2.1 4.6 11.6 17.1 0.0 10.0 20.0 30.0 40.0 High increasing people using internet in 2011-2012 period
  • Internet Penetration By SES Class & Age Base: Single Source, PT Roy Morgan Indonesia, 2009-2012 2009 2010 2011 2012 A 18.9 24.3 43.2 45.5 B 12.7 20.1 29.4 32.9 C 5.8 8.5 19.3 21.7 D 2.6 3.4 11.2 16.3 E 0.9 3.1 4.2 13.9 0.0 20.0 40.0 60.0 Fast growing internet users among younger age group in 2011-2012 2009 2010 2011 2012 14-17 12.5 20.0 47.8 57.7 18-24 10.2 16.3 33.6 44.0 25-34 5.0 7.2 15.2 23.2 35-49 1.5 3.0 6.8 11.0 50++ 0.4 1.1 2.3 4.6 0.0 20.0 40.0 60.0 Fast growing internet users among AB class in 2011-2012
  • Media Reach is Shifting to Internet (Daily/Weekly), Surpassing Radio & Newspaper Base: Urban Indonesians aged 15-50 years old from SES ABC households Source: Yahoo!-TNS Net Index Indonesia 2009, 10, 11 2009 2010 TELEVISION NEWSPAPER RADIO TABLOID INTERNET CINEMA MAGAZINE Reach (%) 2011 PASTMONTHPASTWEEKYESTERDAY
  • TOTAL Base: Urban Indonesians aged 15-50 years old from SES ABC households Source: Yahoo!-TNS Net Index Indonesia 2009, 10, 11 Time & Place to Access Internet by Media 0.0 5.0 10.0 15.0 20.0 25.0 1-5 hours 6-10 hours 11-15 hours 16-20 hours 21-25 hours 26-30 hours > 30 hours Weekly Time Spent at Home Laptop/Notebook Desktop PC 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 1-5 hours 6-10 hours 11-15 hours 16-20 hours 21-25 hours 26-30 hours > 30 hours Weekly Time Spent at School Laptop/Notebook Desktop PC 0.0 2.0 4.0 6.0 8.0 10.0 12.0 1-5 hours 6-10 hours 11-15 hours 16-20 hours 21-25 hours 26-30 hours > 30 hours Weekly Time Spent at Work Laptop/Notebook Desktop PC 0.0 2.0 4.0 6.0 8.0 10.0 12.0 1-5 hours 6-10 hours 11-15 hours 16-20 hours 21-25 hours 26-30 hours > 30 hours Weekly Time Spent at Wifi/Hotspot Zone Laptop/Notebook Desktop PC Internet Time Spent By Weeks
  • Internet Activities
  • Most Visited Websites Kompas, Vivanews and Detik are the most visited News Portal among Indonesia’s most visited sites *based on Effective Measure, for age 18-35y.o
  • Total Unique Visitors (000) % Reach GOOGLE.CO.ID 6,058 86.1 FACEBOOK.COM 5,735 81.5 BLOGGER.COM 4,385 62.3 YAHOO.CO.ID 4,282 60.8 YAHOO.COM 4,153 59.0 GOOGLE.COM 3,823 54.3 YOUTUBE.COM 3,298 46.9 WORDPRESS.COM 3,185 45.3 KASKUS.US 2,185 31.0 4SHARED.COM 2,074 29.5 DETIK.COM 1,637 23.3 WIKIPEDIA.ORG 1,614 22.9 TOKOBAGUS.COM 1,391 19.8 TWITTER.COM 1,381 19.6 KOMPAS.COM 1,152 16.4 VIVANEWS.COM 1,105 15.7 Media Comscore, MF 25+, March 2012 Top Website in Indonesia 5 best local website: 1. Kaskus.Us 2. Detik.com 3. Tokobagus.com 4. Kompas.com 5. Vivanews.com
  • Indonesia Facebook demographics shows that the largest age group is currently 18 - 24 with total of 17.971.071 users, followed by the users in the age of 25 - 34. Social Networking statistics show that Facebook penetration in Indonesia is 18.04% compared to the country's population and 146.11% in relation to number of Internet users. The total number of FB users in Indonesia is reaching 43.831.880 and grew by more than 2.054.640 in the last 6 months. Source: SocialBakers.com
  • Source: facebook.com Media to Access Facebook
  • Based on tweet contribution, Indonesia is the number 3 in the history with the most tweets since 1st November 2010. Source: aworldoftweets.com
  • Source: SalingSilang Engine, Indonesian Twitter Users Twitter Access dominated by MOBILE
  • The Digital Market consist primarily of young consumers age between 18 to 24 yrs The characteristics of these young consumers are they tend to switch and will apt to try something new The youth dominate social media
  • attention interest desire memory action awareness interest search action share OLD NEW Action is now determined more by Sharing AISAS proves the fact that digital will be a strong medium (Branding will be strengthen by the quality of search and share) Buying Process has Changed
  • sales The level of trust of Indonesians to use e -commerce / purchasing online is increasing. The products mostly purchased online are 1.Fashion 2.Travel and 3.Books Purchasing online is increasing
  • The Prospect of Mobile Advertising in Indonesia
  • [1] Mobile Phone Penetration is booming! • In the past 5 years, mobile penetration increased from 29.1%  72.3% (2011)…. It covers around 170 millions people Source: Single Source, PT. Roy Morgan Indonesia, 2007-2011 • The highest contribution of mobile users comes from younger age 29.1 36.0 45.2 59.8 72.3 2007 2008 2009 2010 2011 84.9 87.9 82.2 67.4 43.0 14-17 18-24 25-34 35-49 50++ Annual Mobile Penetration 2011 Mobile Penetration by Age Group Note: % of penetration by Roy Morgan calculated by excluding multiple usage of handset
  • Mobile Phone Penetration 2009-2012 Base: Single Source, PT Roy Morgan Indonesia, 2009-2012 2009 2010 2011 2012 National 44.2 50.7 67.8 76.4 Urban Area 54.5 59.7 75.7 83.0 Rural Area 34.3 41.9 59.8 69.6 0.0 20.0 40.0 60.0 80.0 100.0 76.% of people are now using HP, and the growth both coming from urban & rural areas
  • Mobile Phone Penetration By SES Class & Age Base: Single Source, PT Roy Morgan Indonesia, 2009-2012 2009 2010 2011 2012 A 82.5 79.3 88.9 91.0 B 66.7 76.1 83.8 85.5 C 55.4 55.1 70.5 76.9 D 31.9 39.1 61.4 67.8 E 19.4 34.2 49.3 58.7 0.0 20.0 40.0 60.0 80.0 100.0 The younger age group are the most using mobile phone 2009 2010 2011 2012 14-17 56.1 59.9 81.2 84.5 18-24 68.3 68.4 82.5 91.4 25-34 51.7 60.1 76.5 86.8 35-49 35.4 43.9 63.5 72.1 50++ 15.9 24.8 39.8 49.0 0.0 20.0 40.0 60.0 80.0 100.0 Fast growing usage of HP among lower social class in 2011-2012
  • High mobile penetration puts Indonesia among the largest market for Mob-Ads in the world Source: www.buzzcity.com Annual Mobile Penetration 2011 Mobile Penetration by Age • Buzz City, global mob-ads network, puts Indonesia as #2 market • In Feb, BuzzCity served 1.9 billions ads to reach around 27.28 million unique audience
  • Audience of mob-ads is spreading nationwide, more male than female, 56% below 30 years Source: www.buzzcity.com Annual Mobile Penetration 2011 Mobile Penetration by Age Male 76% Female 24% Gender • Mob-Ads users profile in Indonesia according to < 20 4% 20 - 24 27% 25 - 29 25% 30 - 34 28% >= 35 16% Age 12.11% 6.98% 3.34% 8.43% 5.83% 13.86% 3.70% 6.12% 12.89% 26.73% Others Kalimantan Sulawesi Sumatra - Other Sumatra - Medan Java - Other Java - Semarang Java - Surabaya Java - Bandung Java - Jakarta Location
  • Excelcom & Telkomsel are among the highest carrier for Mob-Ads Source: www.buzzcity.com Annual Mobile Penetration 2011 Mobile Penetration by Age • Carrier for Mob-Ads in Indonesia according to 0.00% 0.24% 1.03% 8.81% 10.24% 11.17% 17.69% 18.21% 32.62% Fren (Mobile 8) Esia Telkom Flexi Indosat Axis Hutchison - 3 Telkomsel Telkomsel Internet Excelcom Carrier
  • Android HP to push mob-ads in Indonesia – price below Rp 1 mio + loaded with mobile browser & SNS application Source: http://www.agbnielsen.net/Uploads/Indonesia/Nielsen_Newsletter_Sept_2011-Eng.pdf Annual Mobile Penetration 2011 Mobile Penetration by Age • According to Nielsen, in Q2- 2011, 46% of handset AD’s were for handsets below Rp 750K
  • Key Success Factors
  • Key Success Factors 1 Clear & sharp understanding of target market • Not only defining target market by demographic characteristics. • More understanding about: • Consumption behavior • Shopping behavior • General “day in a life” of target market • etc
  • Key Success Factors 2 Understanding role of contact points in the category • Media clutter and the fast growth of digital/mobile media makes TV not enough to reach the target market. • The importance of each media is different by category. • Each media has different role to deliver different messages
  • Key Success Factors 3 Digital Advertising (internet & mobile) is becoming more and more important Utilizing digital advertising is becoming future key success factor to reach target market – especially youth. • Advertiser must continuously observe the fast growth, changes and trends in digital world - INTERACTIVE and ENGAGING
  • Thank You Harris Thajeb June 2013