Emtek, MNC Compete Fiercely to Dominate OTT Business

Nielsen's latest research shows that the trend in Indonesia's advertising spending market value will continue to increase throughout 2022, supported by economic recovery and the return of community activities. Total advertising spending this year will reach Rp 272 trillion, up to five percent from Rp 259 trillion last year. In comparison, advertising spending in Indonesia saw a double-digit increase of 13 percent year-on-year (YoY) to Rp 259 trillion in 2021 from Rp 229 trillion a year earlier.

The biggest contributor to advertising spending was TV advertisement with 78.2 percent, digital channels with 15.9 percent, print media at 5.5 percent, and radio at 0.4 percent. Mirae Asset Sekuritas analyst Christine Natasya said that advertising spending rose five percent this year, with a high increase in the first half of this year.

Due to soaring commodity prices, advertising spending continued to grow despite higher costs for the fast-moving consumer goods (FMCG) sector. So far, FMCG companies are the biggest contributors to advertising spending. "Media companies will continue to focus on digital content by strengthening their presence in the over-the-top (OTT) market, although advertising spending is still dominated by free-to-air (FTA) television," Christine wrote in her research Monday.