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Southeast Asian Nations Post Solid Ad Growth, With One Exception
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Southeast Asian Nations Post Solid Ad Growth, With One Exception

Indonesia, Malaysia, Singapore and the Philippines all recorded sound growth in ad spending in 2008 despite the global economic downturn.  Meanwhile, ad spending in Thailand dropped 3 percent during the year as political instability took a toll.

INDONESIA

Leading the group was Indonesia, where ad spending increased 19 percent in 2008 over the previous year, and all four quarter showed growth.

Media Outlet 2008 (US$000s) 2007 (US$000s) % Change
TV 2,868,654 2,522,678 14%
Newspapers 1,499,080 1,165,809 29%
Magazines 182,731 149,715 22%
TOTAL 4,550,465 3,838,202 19%
Source: Nielsen AIS

The top 10 ad spending categories combined represent 77 percent of all main media spending in Indonesia.  The office equipment/computers/communications category led spending in value terms and posted 53 percent growth on a year-to-year basis.   Medicines/pharmaceuticals and toiletries & cosmetics were laggards in the top 10, posting no growth in ad spend for the year. As in other Asian countries, telecom brands dominated the top 10 advertisers, with Excelcomindo – GSM Card leading the way.

MALAYSIA

Malaysia came in second, with ad spending up 12 percent for the year. The fourth quarter did experience a slow-down, with increases at just 2.4 percent versus the same period a year earlier.

Media Outlet 2008 (US$000s) 2007 (US$000s) % Change
TV 630,125 524,199 20%
Newspapers 960,940 893,587 8%
Magazines 45,435 48,341 -6%
Radio 84,720 70,873 20%
Cinema 7,988 7,659 4%
Outdoor 27,791 31,368 -11%
Other 28,857 17,021 70%
TOTAL 1,785,857 1,593,047 12%
Source: Nielsen AIS

All ten of the top ad spend categories – -which account for 64 percent of all Malaysia media activity – registered gains. Retail, the top category by value, recorded 24 percent growth, while pharmaceuticals posted 32 percent growth.  Financial ads posted the lowest growth of the top ten, eking out just a 2 percent increase.  The three largest advertisers, which represented 57 percent of the total top 10 activity, were telecoms, led by Celcom.

PHILIPPINES

Coming in third was the Philippines, which posted 11 percent growth across all media.  Ad spending remained solid over the year, showing a slight slow-down in the fourth quarter.

Media Outlet 2008 (US$000s) 2007 (US$000s) % Change
TV 2,730,265 2,454,771 11%
Newspapers 204,525 194,118 5%
Magazines 50,045 41,874 20%
Radio 682,091 531,902 28%
Pay TV 137,560 192,551 -29%
TOTAL 3,804,486 3,415,216 11%
Source: Nielsen AIS

The top ten categories represent almost half of all main media advertising, and is led in value terms by hair shampoos/hairdressing products.  That category, however, showed a decline of 7 percent in ad spending compared to 2007.  The biggest growth – 61 percent – came in the proprietary drugs/other than vitamins and tonics category.  Of the top ten brands advertised in 2008, five were hair care and two were dental hygiene products, with Colgate Maximum Cavity Protection toothpaste leading the way.

SINGAPORE

Moving west to Singapore, ad spending finished 2008 with 7 percent growth, although spending actually declined in the fourth quarter after three previous quarters of consistent growth.

Media Outlet 2008 (US$000s) 2007 (US$000s) % Change
TV 488,682 454,380 8%
Newspapers 569,053 549,092 4%
Magazines 79,070 81,722 -3%
Radio 101,589 95,871 6%
Cinema 11,025 10,108 9%
Outdoor 145,740 118,414 23%
TOTAL 1,395,160 1,309,585 7%
Source: Nielsen AIS

Entertainment, the top category in value terms, showed 18 percent growth for the year. Education showed the most improvement – 21 percent – while retail was the only declining category in the top ten (-1%).  The leading advertiser was Courts, a retailer, followed by Tiger Beer/Asia Pacific Breweries.

THAILAND

The only country in Southeast Asia to show a decline in ad spending in 2008 was Thailand, which was affected by the slowing economy and civil unrest.  Ad spending was down 3 percent compared to 2007.  Only the second quarter showed any growth, a relatively modest 4.6 percent.

Media Outlet 2008 (US$000s) 2007 (US$000s) % Change
TV 1,590,906 1,664,587 -4%
Newspapers 531,751 545,994 -3%
Magazines 189,226 203,218 -7%
Radio 245,612 226,393 8%
Cinema 132,356 136,445 -3%
Outdoor 131,112 139,458 -6%
Other 57,707 47,189 22%
TOTAL 2,878,670 2,963,284 -3%
Source: Nielsen AIS

Only two categories of the top ten showed any growth – motor vehicles and non-alcoholic beverages.  The top category in total spent was skin-care preparations, which recorded a 6 percent decline on a year-to-year basis.  Skin care, autos and communications products dominated the top ten brands advertised in the year, with Ponds Facial Skincare Product leading followed by PTT Public Co., a gas company and Toyota pickups.