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Online Advertising Expected to Boom: Marketing expert

Indonesia’s online media will gain a bigger share of advertising dollars in the next few years, an internet marketing expert said Thursday.

“Currently, the share enjoyed by the online media is still quite small,” Virtual Consulting‘s CEO Nukman Luthfie said during the “New Media: The End of the Conventional Media?” seminar, held in Sanur.

In 2008, the country’s online media received just Rp 80 billion (US$6.7 million) of the country’s total advertising expenditure of Rp 42 trillion.

“The situation will change in the next few years as the online media will acquire a bigger share of advertising budgets,” he said.

The forecast, Nukman said, was based on his observations of the latest developments taking place in the both the nation’s major advertising firms, as well as its large private corporations.

“Several major advertising agencies have began to seriously develop their digital departments, while several commercial corporations have decided to promote their new products exclusively through online media,” he said.

This shift, he suggested, was driven by the growing level of internet use in the country. Out of a total 30 million internet users in Indonesia, 44 percent surf the web on daily basis, spending an average of two hours online.

“The habit of reading newspapers is nearly extinct among young people,” he said, implying that they have switched to online media.

Data released by Zenith Optimedia stated that the share of online advertising will see an annual growth rate of 23 percent annually during the 2007-2010 period. At the same time the advertising shares of newspapers, magazines, television and radio will decrease.

“The worst decrease will be experienced by newspapers,” MNC Sky Vision CEO Handhi S Kentjono said.

However, Kentjono said he was convinced that the online media would not wipe out printed media altogether. Despite the prevailing prediction that internet use in Indonesia will increase by 20 percent in the 2007-2010 period, the country’s infrastructure has yet to reach the level where it can support a nation-wide internet network. The archipelagic nature of the country coupled with the limited capability of its communication satellites is hampering the effort to expanding internet coverage, he added.

Kentjono projected that media convergence would be the future trend for the country’s online and print media, supported by the shift in the behavior of media consumers. The number of consumers getting their information from more than one source has steadily increased, he added.

The seminar was organized by the Alliance of Independent Journalists (AJI) in conjunction with its national congress.

Source:

The Jakarta Post:Ni Komang Erviani ,  Contributor ,  Denpasar   |  Sat, 11/29/2008 11:29 AM  |  Bali

Liputan media lain:

KOMPAS: Tak Ada Media Gantikan Media Lain

KONTAN: Media Konvensional Bakalan Mati?

REPUBLIKA: ‘New Media’ Ancam Keberadaan Media Cetak

KAPANLAGI: Media Baru Ancam Media Cetak

BISNIS.com: Pengiklan masih andalkan media cetak

LIPUTAN6.COM: Tahun Depan, Prospek Media Online Cerah

ANTARA: “New Media” Ancam Keberadaan Media Cetak

HARIAN BISNIS INDONESIA: Pengiklan masih andalkan media cetak

TEMPO Interaktif: New Media Threatens Print Media

DETIK.COM: New Media Ancaman Bagi Media Cetak

10 Responses to “Online Advertising Expected to Boom: Marketing expert”

1. kamal says:

   November 29, 2008 at 1:27 pm

   pertamaxxxxx….
   subhanallah mantabz… banyak yg ngeliput nih ye :p
2. kamal says:

   November 29, 2008 at 1:56 pm

   btw, di detik juga diliput tuh pak

   http://www.detiknews.com/read/2008/11/27/193522/1044226/10/new-media-ancaman-bagi-media-cetak

   NL:
   Terima kasih mas Kamal, saya tambahkan di atas ya.
3. Ivan @ NavinoT says:

   December 2, 2008 at 12:21 am

   It’s about time….
4. amar alpabet says:

   December 2, 2008 at 1:30 pm

   emmm memang harus disegerakan untuk mempersiapkan mempersiapkan media advertising yang mantap untuk online
5. Yoppi says:

   December 3, 2008 at 1:59 am

   Bener pak, media konvensional mulai pelan2 di tinggalkan.

   Teman2 saya saja hanya membaja koran jika lagi di warung, yang di bacapun hanya jadwal film dan obrolan2 ringan.

   Sepertinya koran sudah ga di gubris lagi, namun uniknya seandainya koran itu pun tidak ada, rasanya ga kumplit kalo ga baca koran 1 hari saja…
6. fathonix says:

   December 4, 2008 at 12:59 am

   Buat karyawan media cetak, gak usah kawatir. diluar negeri media online sdh maju tp media cetak msh digunakan dengan baik!
7. Nurul Hidayat says:

   December 10, 2008 at 1:36 pm

   Siap-siap buat media online nih! agar tidak ketinggalan. Karena ternyata medio internet terbesar memberi pendapatan kalo saya baca ulasan di Kompas. NH
8. Andri says:

   December 12, 2008 at 5:31 pm

   emang kudu bisa ikut gmn pinginnya pasar.kalo gak gt yah kita yg bikin kebutuhannya aza selagi ada kesempatan knp gak menjemput bola ato bikin kita dikejar mereka..hehehhee..!
9. Syafar says:

   December 15, 2008 at 4:16 pm

   ikutan juga dooong, sepertinya asyik tuh..
10. ucur says:

    June 11, 2009 at 5:16 pm

    Mau tanya pak..
    kira2… untuk online advertising itu yg paling sering dipergunakan dan memiliki prospek kedepan yg bagus yg seperti apa yaa???
    thx..