Survey : Out-of-Home is The Most Effective for Advertisement in Indonesia

Biggest advertisement cost in Indonesia is television, newspaper and magazine. However according to a survey, advertisement that attracts most attentions are outdoor media, besides television and digital.

Millennial era changes the trends of urban community. For marketers, the effect is the change on marketing and advertisement activity. If we look at the cost of national advertisement, the highest cost placements are gained by television, newspaper and magazine. However facts gathered by the research conducted by Brand & Marketing Institute (BMI) Research and Iconic to 1.010 respondents from Jabodetabek say the other.

Research results revealed that outdoor media indeed is more effective to introduce product and service to consumer and influencing their decisions. Even though, television and digital media still becomes the popular choices, winning for their audio visual and broad scope abilities. It is founded that urban society’s level of awareness in seeing out-of-home advertisement rules up to 81%, a level below television (83%), while online and printed media only ranks up to 55% and 20%, respectively.

“Economy and business activity always concentrate on marketing and advertising in mass media. Even in today’s digital era, television still become the main media for industries in introducing their product and service to their consumers, but in fact outdoor media is way more effective and efficient,” shared General Manager of Iconic Khomeini in Imogen Update event, Jakarta, Thursday (04/08).

Moreover, Khomeini stated that the research result has determined Iconic’s stand as agency that specialized in out-of-home media to keep developing their business. Today Iconic has the biggest inventory in Indonesia with total of 308.360 advertisement spot that varies from water transportation (roro boat), air transportation (commercial planes), land transportation (Angkutan Kota, Commuter Line, Train, and Bus), shopping centers, mall, and billboard.

Explaining his research results, General Manager of BMI Research Inu Mahfud says the increase of out-of-home media penetration in Jabodetabek that reach 81% is supported by the fact that urban people have high mobility among the density of traffic, so that half of them spend more than 10 hours outside their home each day.

“Out-of-home media could bring a very positive impact in influencing perception and encouraging consumers in big cities to buy products or using the services which has advertisements in various public areas,” he stated.

Unfortunately the marketers haven’t found out these facts, so that advertisement expenditure of out-of-home media still placed fourth after television, newspaper and magazine. “Advertisement on out-of-home media is more effective and efficient because it has more affordable cost comparing to other media. The cost to influence a thousand people through out-of-home advertisement only needs 5% from television advertisement,” said Inu.

Besides that, the high amount of urban people’s attention to advertisement on out-of-home media also being influenced by the visual and placement of those advertisements. This is because visual and designs are the easiest things to remember and to gain attention from consumer, not audio. “Trend in urban society is that 5 from 10 people or 47% from them most probably seeing out-of-home advertisement,” explains Inu.

Regarding effective location, Khomeini adds that advertisement placement in public transportation such as angkot, boats, planes, or trains are beneficial because moving media could catch people’s attention. “The highest potential out-of-home advertisement spot that is chosen by companies are land transportation such as angkot, followed by billboard and office buildings,” he said.

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