Competition in the advertising industry, said Pudjianto, who is also a member of the board of advisors of the PPPI, has become increasingly less healthy, especially given the fact that this is a fee-based industry. However, there are also quite a lot of advertising agencies that stay out of the trap of advertising price wars and continue to grow.
The choice to expand or grow in a more conservative manner with a focus on clients who appreciate and understand the interests of their advertising agencies may be a good option, although it is not the most alluring choice for advertising agencies. However, on the Asian and Southeast Asian levels, Indonesia could be considered a terrific example of how local advertising agencies can enjoy a significant part of the national advertising pie.
Local advertising agencies like Matari, DM Pratama, Dwi Sapta, Hotline and several others are still in the big 20 in terms of share of the advertising pie. In Malaysia, Thailand, Singapore, the Philippines and even China, the list of upper-rank advertising companies hardly ever includes any local advertising agencies. Apart from the magnitude of the business, the problem being faced by local advertising companies in Indonesia is their creative performance.
“The sad story is here. Perhaps it is this factor that gives the impression that the advertising industry in Indonesia is dominated by advertising agencies affiliated with foreign companies. In reality, this is not the case. At least the condition of the advertising business in Indonesia is not as bad as in neighboring countries,” Ricky Pesik concluded. (Burhan Abe)
The Jakarta Post – March 14, 2006
