NEWS & INSIGHTS

3rd Edition, 2019

OUT-OF-HOME ADS: CAPTURNG ATTENTION WHILE ON THE GO

Out-of-home advertising is the very first form of advertising. Long before the advent of billboard, people used to
announce updates or news on paper glued on the wall of public building. Out-of-home advertising is considered a mass-
market medium – just like TV and cinema advertising. What makes it special is when people see the out-of-home
advertising i.e. billboard or 3D installations, they take a moment to scrutinize, and for brands, that kind of moment makes
the difference between irrelevance and interest.
Nowadays, living in the mobile-technology era, out-of-home advertising is used as a driver for people to do
something else towards the brand. Out-of-home advertising can drive people to something instantly, such us with QR
codes people can simply access web addresses or even apps such as Snapchat or Instagram. This out-of-home
advertising can be a way to begin a conversation with consumer or promote an outdoor campaign to go viral.
Additionally, according to Nielsen U.S – based on a study commissioned by the Outdoor Advertising Association of
America in 2017 – outdoor advertising is the most effective non-digital medium in generating online activity.

CHOOSING TO BE STATIC OR ON MOVING MEDIA

Nielsen Consumer and Media View Study in 11 cities (Q1 2019) revealed that people spent approximately 5
hours outside home – leaving question to out-of-home players whether their ads were successfully being seen by their
targeted people in their 5-hour slot of outside time. Capturing Indonesia’s outdoor advertisement penetration, there are
65% people claimed to see static outdoor advertisement In the last 4 weeks, slightly higher than the penetration number
of people claimed seeing ads in public transportation in the last 4 weeks, which is 52%.
Public transport itself offers many kind of types, vehicle body (exterior), or inside the vehicle (interior). In 2019,
we have held a commuter line study* to capture Jabodetabek commuters’ profiling, ad impact and also brand usage.
From that study, we found out that, commuter line could reach 537,000 people in average per day with average of
traveling duration at 1hour 55minutes per day. Having said that, commuter line could be seen as a very hot spot for
exposing brand / messages, especially for inside-the-train ads which were supposed to have more holding power than
outside ads, considering the limited proximity of sight that people had while inside a moving train.

ADS ON MOVING VEHICLE: WHICH TOURISTY CITY HAS THE MOST ADS
The other new emerging form of out of home advertising on transportation is ads on private vehicle. There are
15% people said that they saw ads on private vehicle this week, 10% said yesterday, and 20% said more than 4 weeks
ago. Moving on the frequency, 23% said at least they saw one once a month. We also made a comparison to see how
often people see ads on private vehicle in some big and touristy cities – Greater Jakarta, Greater Bandung, Greater
Yogyakarta and Greater Denpasar. We found out that Yogyakarta and Denpasar had higher frequency of finding ads on
moving car on street. For people in Greater Yogyakarta, they said that they could find that type of ads three times a week
or more, while for people in Greater Denpasar could find it less frequent which was around twice a week.

INDOOR ADS: OUT OF HOME YET LOCATED INSIDE A BUILDING

This type might sound tricky as it is part of out-of-home media yet it is located not in the outside. Indoor ads –
that’s how we call it – is also a new type of ads which is starting to make appearances at numbers of building. You can
find it while waiting for elevator, and find another one inside the elevator, or displayed on the body of public locker. In Q1
2019, there were almost 13 million people claimed that they had seen indoor ads and most of them said they were
exposed by indoor ads within the last 7 days. These people mostly saw indoor ads at shopping center, mall, office
building, local shop and hospital. We also observed which place got the least people remembered seeing ads at and wet
market got the least number, lower than bank and campus/university. Campus got the least number might be caused by
some regulation or restriction applied for commercial display in the academic environment.
*for more information of our recent commuter line study please contact your Nielsen representative

Copyright ©2019 The Nielsen Company. Confidential and proprietary.

CELEBRATING DEMOCRACY 2019: WHAT IMPACT IT BRINGS TO ADVERTISING EXPENDITURE

According to Nielsen Advertising Intelligence (Ad Intel), advertising spending in Q1 2019 was relatively stable at 4
percent compared to the same period last year. The expenditure form TV was still dominating with total amount reaching
IDR 30.9 Trillion, resulting 8 percent growth from the expenditure in Q1 2018.
This first quarter of the year also happened to be a period for numbers of political party competing for seats in the
parliament house therefore making the most of advertising slots to reach people as much as possible. Certainly, this
presidential election moment has impacted the advertising trend. The biggest portion of advertising spending in Q1 2019
came from the Government and Political Organization category with IDR 2 Trillion total spending (equal to 11% growth).
Looking at the next biggest spending category, Online Services found to be at the second place with total
expenditure of IDR 1,9 trillion, and Hair Care appeared next with total spending of IDR 1.8 Trillion. Looking at the top
spending list by brands, Mi Sedaap, Counterpain and Gudang Garam Move were appeared to be the dominant players on
TV. For print media, it was the Government players dominating the top list, among which are South Sumatera Regional
Government, Riau Regional Government and Lampung Regional Government. Moving on to top brands on Radio, Shell
was still at its leading position – as if they constantly chose radio for advertising activities regardless any national occasion
and season – followed by the new comers Belimobilgue.co.id with its repetitive jingle and lastly was Gulates the
sweetener.

GOVERNMENT AND POLITICAL ORGANIZATIONS ENLIVENED THE ADVERTISING EXPENDITURE TREND

Throughout the election campaign period (March 24th – April 13th 2019), among all categories advertised,
Government and Political Organization contributed substantial portion of 12 percent with a total advertising expenditure of
IDR 1.1 Trillion. This numbers demonstrated that this category experienced a significant increase compared to the
expenditure in the election campaign period in 2018 (IDR 429 Billion).

Source: Nielsen Ad Intel Q1 2018-

2019, TV & Print.
*Commercial product ad spending on
national TV based on gross rate card
(doesn’t calculate discount, promo,
bonus, etc.), in Billion

THE GENERAL ELECTION RECEIVED POSITIVE RESPONSE FROM TV VIEWERS

The Presidential Election (Pilpres) Debate which was held five times by the General Elections Commissions (KPU)
gained more viewers than the debate aired on television in the previous 2014 election period. Result of Nielsen TV
Audience Measurement (TAM) revealed that in addition to more TV stations broadcasting Presidential Election Debate
programs in 2019, this year’s Presidential Election Debate also gained audience reach of 67.9 percent, which was bigger
than the one in 2014 (62.9%).
Moving on to ratings, the five debates of the 2019 Presidential Election gained a much higher cumulative ratings
as there were more TV stations joined to broadcast the debate program compared to the 2014 election year. Of all debate
programs, the second debate gained the highest rating which was at 18.8%. The election euphoric still continued after the
election day on April 17th 2019, within two days after the election day, political-related programs still earned a fairly high
ratings; 13.2% on April 18th and 13.8% on April 19th.
Hellen Katherina, Executive Director of Nielsen Media Indonesia, added that throughout the first quarter of 2019,
Government and Political advertising category contributed 5.5% to the total advertising expenditure. Meanwhile during the
election campaign period set by National Election Commission (KPU) starting on March 24th to April 13th 2019, political
party ad accounted for 12% of the total advertising expenditure. This indicated that political parties still believe in the
strength of mass media in building awareness and brand. She also added that the high ratings of the election-related
programs showed that TV viewers in 11 cities were very enthusiastic about the elections from the pre-event until the post-
event.
Nielsen TV Audience Measurement studies in 11 cities also found that there were a tendency for viewers to watch
TV longer on the election day with average time of viewing reaching 5 hours 30 minutes (additional 12% of the time spent
watching on normal days). This tendency was also driven by the Quick Count programs broadcasted throughout the
election day.

Copyright ©2019 The Nielsen Company. Confidential and proprietary.

 Looking at the audience profile, viewership ratings increase across all age groups and socioeconomic classes
classification compared to the viewership on normal days. From age group perspective, it was the 50+ age group that
gained the highest ratings (17.7%), while from the socioeconomic classes classification angle, Middle class viewers still
contributed the highest ratings (14.3%).

Source: Nielsen TV Audience Measurement, 10 April 2019 vs 17 April 2019 viewership

HAPPENED IN MARCH 2019

NIELSEN EXCURSION TO HONGKONG: BOOSTING REVENUE WITH EFFECTIVE USE OF AUDIENCE DATA,
TECHNOLOGY AND SALES MEASUREMENT SOLUTIONS
Digital is growing bigger and stronger, internet penetration has grown to 125% with 79% people accessing
internet through smartphones. This internet surfing activity is commonly done while watching TV (around 91% in
average), also known as the dual screen activity. Therefore, marketers have started to consider internet as vital as other
media, they have been moving their budget to where the audience are. Consequently, digital advertising expenditure is
growing. Having said that, TV broadcasters need to prepare future strategy to tap into Internet and digital platform. They
need to embrace this platform Instead of seeing it as a treat.

With that industry background, Nielsen Media

Indonesia initiated an excursion to Hong Kong from 18th
March 2019 to 22nd March 2019. This trip was arranged
to explore more about how broadcasters embrace the
digital platform and what strategy they apply to make the
most of it to boost up performance and revenue. Nielsen
Media chose Hong Kong as destination because of two
supporting factors; 1). Hong Kong advertising
expenditure on digital was bigger than non-digital, 2).
TVB one of Hong Kong’s biggest broadcasters whose
primetime channel share reaching around 80%, had
adopted special strategy to utilize digital technology in
order to maintain its strong position. The special strategy
applied by TVB is making use of Data Management
Platform (DMP) for campaign targeting and activation.
Therefore, TVB was able to target and custom audiences
at scale, demonstrate ROI with real time analytics, and
eventually boost up their revenue.

Before visiting TVB, all excursion participants were invited to come over to Nielsen Hong Kong office where they
could be updated with Hong Kong’s media landscape. By the end of the trip, all participants were expected to get the
robust picture of Hong Kong’s media industry and the implementation of digital strategy to strengthen broadcasters’
position in today’s industry.

Copyright ©2019 The Nielsen Company. Confidential and proprietary.

 FLASH NEWS: WELCOMING YOUTUBE MOBILE IN APP TO OUR DIGITAL AD MEASUREMENT

We are excited to announce that starting June 1, 2019, we have expanded our coverage of YouTube in Digital Ad
Ratings in the following 26 countries: BELGIUM, BRAZIL, BULGARIA, CZECH REPUBLIC, GREECE, HONG KONG,
HUNGARY, INDIA, INDONESIA, IRELAND, ISRAEL, MALAYSIA, MEXICO, NETHERLANDS, NEW ZEALAND,
NORWAY, PHILIPPINES, POLAND, PUERTO RICO, SINGAPORE, SOUTH AFRICA, SPAIN, TAIWAN, THAILAND,
TURKEY & THE UNITED ARAB EMIRATES to include YouTube mobile in-app traffic, in addition to our measurement of
YouTube desktop and mobile web browsers.
Nielsen measurement of the YouTube mobile app is already available in the U.S, Australia, Canada, France,
Germany, Italy, Japan and the UK. This will expand Nielsen’s current measurement coverage of YouTube ads on desktop
and mobile web browsers to 34 countries, and provide marketers independent and comprehensive cross-device
measurement of advertising audiences on YouTube across computer and mobile devices.
You will soon have access to age and gender demographics for consumers viewing advertising on the YouTube
mobile app as well as reach, frequency and gross rating points (GRPs). Measurement of YouTube ads uses a consistent
methodology with all other mobile publishers in Digital Ad Ratings - enabling both media buyers and sellers to leverage
truly comparable and deduplicated people-based measurement across publishers in their media planning and execution.

WITH NIELSEN DIGITAL AD RATINGS, PUBLISHERS, ADVERTISERS AND MEDIA AGENCIES WILL BE ABLE
TO GAIN A DEEPER UNDERSTANDING OF THEIR AUDIENCE ACROSS YOUTUBE USING METRICS
COMPARABLE TO THOSE USED FOR TV

Nielsen is committed to providing truly independent third-party measurement, and we look forward to continuing to
deliver solutions that meet the needs of our clients and the broader industry. Please contact us for more information,
including tagging requirements and guidelines, on adding this new reporting into your campaigns.

Copyright ©2019 The Nielsen Company. Confidential and proprietary.

MOST-WATCHED PRODUCTS – MARCH 2019
LOOSE SPOT ADS

PRODUCT GRP NO. OF SPOT

VIVO - GSM MULTICARDS HANDPHONE 5,724.95 4,127

GG MOVE - FILTER CLOVE CIGARETTE 3,963.68 2,432

INDOMIE - INSTANT NOODLE 3,960.00 4,128

SEDAAP - INSTANT NOODLE 3,677.97 3,960

COUNTERPAIN 3,456.71 5,108

NON - LOOSE SPOT ADS

PRODUCT GRP NO. OF SPOT

LUWAK WHITE KOFFIE PREMIUM - LOW ACID CO 17,255.37 14,547

BUKALAPAK.COM - ONLINE SHOP 12,766.24 5,922

BINTANG TOEDJOE MASUK ANGIN - LIQUID TRA 6,772.11 2,588

SHOPEE.CO.ID - ONLINE SHOP 6,209.41 3,368

FAIR & LOVELY - FACE CARE 5,301.23 1,963

Source: TAM 1-31 March 2019, all people 5+, 11 cities, 15 National Station, GRP (Gross Rating Points) in %

TOP SPENDERS IN PRINT– MARCH 2019

Rp.
PRODUCT NO OF SPOT
(in 000)

HONDA - ALL CARS 206,674 597

ASUS - PC NOTEBOOK 127,100 112

TOYOTA - ALL CARS 124,589 335

MADU BIMA 99 - HONEY 123,560 593

HONDA - ALL MOTORCYCLES 121,626 440

Source: AQX 1-31 March 2019, excluding Media and Government, all people 5+, 11 cities, Rp in (000)

TOP SPENDERS IN RADIO – FEBRUARY 2019

Rp.
PRODUCT NO OF SPOT
(in 000)

CASTROL - OIL LUBRICANT 69,208 2,193

TORABIKA DUO - COFFEE 23,185 3,864

GO JEK - MOBILE APPLICATION 22,074 1,586

BELIMOBILGUE.CO.ID - WEBSITE 19,584 1,053

DAMDEX - WATER PROOFING 17,621 1,101

Source: AQX 1-28 February 2019, excluding Media and Government, all people 5+, 11 cities, Rp in (000)

Copyright ©2019 The Nielsen Company. Confidential and proprietary.

Copyright ©2019 The Nielsen Company. Confidential and proprietary.