1. Indonesia’s Advertising –
Dead or Alive
Harris Thajeb
June 2013

2. Indonesia’s Advertising
Expenditure

3. 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%

4. 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%)

5. 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

6. 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

7. The Rising Middle Class in Indonesia

8. 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 ”

9. 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

10. 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

11. Indonesia Segmentation
2012

12. 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%

13. 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

14. 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%

15. 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

16. 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%

17. 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

18. Indonesia Digital
Landscape

19. ASIA has the BIGGEST number
of internet users in the world.
WORLD STATISTICS OF INTERNET USERS

20. 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

21. 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

22. 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

23. 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

24. Internet Activities

25. 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

26. 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

27. 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

28. Source: facebook.com
Media to Access Facebook

29. Based on tweet contribution, Indonesia is the number 3 in the history with the most
tweets since 1st November 2010.
Source: aworldoftweets.com

30. Source: SalingSilang Engine, Indonesian Twitter Users
Twitter Access dominated by MOBILE

31. 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

32. 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

33. 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

34. The Prospect of Mobile
Advertising in Indonesia

35. [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

36. 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

37. 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

38. 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

39. 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

40. 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

41. 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

42. Key Success Factors

43. 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

44. 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

45. 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

46. Thank You
Harris Thajeb
June 2013