Indonesia – Entertainment and Media

Indonesia’s spending on entertainment and media has grown rapidly although the value is relatively low in comparison to the world, US$10.2 billion vs US$1.8 trillion. 

According to Statista and meetings conducted for this study, our respondents agreed that TV is the most common and most popular medium used to reach Indonesians’ attention; it has 95% penetration rate compare to other medium such as radio which only has a 20% penetration rate. Advertisers use TV to reach their target market, as illustrated in the chart below. Because of the fact that most Indonesians like to watch TV, it is a natural way for advertisers to use TV as a channel to promote and market the products or services.

Indonesia’s Media Advertising Market Share 2014 (%)

Source: MNC Media, Media Partners Asia

The second most popular mode of advertising is newspaper, where we will see things change in the coming years. We cannot ignore the impressive growth of digital business and how it has changed our lives tremendously not only the media business. It was reported that the Indonesian print media outlets declined with 40% and print circulation declined with -11%. 

Some of the major publishers have established their online news portals in order to reach the younger generation (including millennials). However the online version of news is not enough. The online news portals finds it challenging to retain their readers. Most of the readers that access online news do not do so directly through their online website. They reach the news from other platforms used by the readers and social media connections that share the article posted by the online news. In that sense the media have to work closer with various stakeholders in this digital market.

Total Media Advertising Spending (BUSD)

Source: emarketer

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