The 1st ICBC: International Conference on Business and Communication (2011), Jakarta, Indonesia

MEDIA STRATEGY

FOR SIMCARD ADVERTISEMENT PRODUCT

CATEGORY

Alamanda, Dini Turipanam

Institut Manajemen Telkom Bandung

This research was conducted to examine television media strategy for SIMcard product

category. In order to extent comprehension on how TV advertisers select TV spot, it is

important to understand what factor being considered by TV advertiser for selecting the

suited TV spot particularly for SIM card product category.

The source of data for this study was obtained from A. C. Nielsen, using Arianna

software. It is consisted TV advertisement data every day for one month (March 2010).

The factors which are evaluated are television rating, rate, program, time (day and hour),

and category of a brand/product. This research covers 10 national TV stations in

Indonesia, which are RCTI, SCTV, Trans TV, Trans 7, Global TV, ANTV, TPI (MNC),

Metro TV, Indosiar and TV One.

Finding in this research include that in some of television station, advertiser did not

always considered advertisement cost, or the timing of advertisement. Some advertisers

tend to consider other aspects such as rating and the number of viewer, not only about the

television rate. But still, a television program that has high rating not always attract more

ads.

Keyword: Advertising, Television, SIM card Category, Media Selection

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I. Introduction

In recent years, national ad spending continues to increase sharply. Data of PPPI

(Association of Indonesian Advertising Company) records ad spending continues

to increase. In 2007 reached Rp35, 1 trillion, in 2008 reached Rp41 trillion, in

2009 reached Rp48, trillion, and the first half of 2010 reached Rp28, 5 trillion or

58 percent of total spending in 2009 (Lubis, 2010). Wahyudi (2010) states that

advertising expenditure reached 62 trillion and telecommunications companies are

the largest contributors followed by banking and some consumer goods

companies. Wahyudi also expressed in terms of quantity, 60 percent of ad

spending spread to television and the remaining 30 percent spread to the print

media and radio.

Managing Director of Nielsen Audience Measurement of Nielsen stated that

television advertising is dominated by telecommunications service providers. The

largest advertising expenditure allocation incurred by PT XL Axiata worth Rp 593

billion with a 66 percent increase compared with 2009. Then, Telkomsel (all SIM

card) worth Rp 538 billion, Telkomsel SIMpati worth Rp 438 billion, Telkomsel

AS worth Rp 398 billion, Axis worth Rp 396 billion, and Indosat worth IM3 Rp

320 billion (Pratignyo, 2010).

In general, television has two target consumers (as a source of income), the

audience (viewers) and the advertiser. Knowing the desired target market and

show a better program is the key to the success of a television. If a program has a

lot of viewers, it will automatically increase the rating of the program itself. The

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programs that have high rating usually attract great attention from advertisers to

invest their money there.

However, the rating is not the only thing to be considered by the advertisers.

There are many other factors that influence, such as day part and ad rates. It is

very important to understand the behavior of the advertiser (company SIM card)

in choosing a television station as an advertising medium with the restrictions the

following issues:

a. Variables used in this study consists of time (day and hour), television

ratings, advertising rates, and brand / product category

b. Source data obtained from A. C. Nielsen, using Arianna Software with

time period February 2010.

c. This study includes 10 national television in Indonesia, including RCTI,

SCTV, Trans TV, Trans 7, Global TV, SCTV, TPI (MNC), Metro TV,

Indosiar and TVOne

II. Literature Study

According to Kotler (2003:814), advertising is a form of impersonal presentation

and promotion of ideas, goods or services by a specific sponsor needs to be paid.

In this case could mean that advertising is a form of impersonal communication

with the costs incurred by the company in the use of mass media to persuade and

influence potential customers.

Peter and Olson (2000:222) stated that in practice advertising is able to create

emotional to consumers. External stimuli that create positive emotions can be

paired with the product so the product gets positive effect.

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According to Farbey (1987), television is a medium that preferred among advertisers

because of its effects. Television uses color, sound, movement, and music. Additionally

viewers can be selected according to the type and time of the program. Television is a

medium capable of reaching vast areas, and can be used by all advertisers to test

marketing or launching a new product.

Like other media used in advertising, television also has strengths and limitations.

Rhenald Kasali (in Durianto and Liana, 2004) concluded that and presented in

Table 1.

Table 1. The Strengthen and The Weaknesses of Advertising in Television

Strengthen Weaknesses

Cost efficiency Big cost

Strong Impact Unselected target market

Strong Influence Technical difficulty

Some advertising experts argue that in order for an advertising campaign to be

effective, advertising must contain great ideas that attract the attention of

consumers, get a reaction, and separating the products and services that are

advertised other products in the competition (Lee and Johnson, 1999). Shimp

(2000) states that invest heavily in advertising suggest that many companies have

confidence in the effectiveness of advertising.

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These SIM card companies currently are the largest television advertising users in

Indonesia. Director of Telecom Practice Group Nielsen, Viraj Juthani in Seputar

Indonesia (2010) mentions that the telecommunications industry for ad spending

up 43% after a decline of 11% in 2009. While the telecom operator company that

issued the largest advertising expenditure is Telkomsel (Rp1, 4 trillion), followed

by Indosat (Rp639 billion), XL Axiata (around Rp631 billion), Natrindo Cellular

Phone (Rp396 billion), Bakrie Telecom (Rp296 billion), Telkom Indonesia

(Rp295 billion), and Hutchinson 3G (Rp278 billion).

III. Methodology

This study used exploratory method. The purpose of exploratory method is to

obtain information relating to research and deep understanding of things that are

not yet known. Figure 1 is a flow chart of this study.

Figure 1. Research Flow Chart

Data obtained from Arianna software. Arianna is another invention in the

innovation process analysis software of AGB Nielsen Media Research, where

Arianna changed the face and the ability of the AGB Workstation.

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IV. Results and Discussion

Figure 2 Chart of Total SIMcard Ads Figure 3 Chart of Total SIMcard Ads (In Percent)

Total number of SIM Card ads in February 2010 for 10 television stations is 3393.

The average number of SIM Card ads per day is 121 ads, and 5 ads/hour. Based

on the chart in figure 2, Global TV has the greatest number of ads by 581

advertisements, followed by Trans TV (467 ads), TPI (432 ads), SCTV (421 ads),

RCTI (321 ads), Indosiar (313 ads), ANTV (280 ads), Trans 7 (276 ads), TVONE

(218 ads) and Metro TV (84 ads).

The total number of SIM Card ads in February 2010, in all television stations, in

the form of percentage can be seen from figure 3. Global TV was superior with

17%, followed by Trans TV (14%), TPI (13%), SCTV (12%), RCTI (10%),

INDOSIAR (9%), ANTV and Trans 7 (8%), TVONE (6%) and Metro TV (3%).

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Figure 4 Ads in February 2010 based on Day of Week

Figure 4 above shows that the highest number of Ads is on Thursday (982) and

Friday (906). While the lowest number of Ads is on Sunday (697). Next, this

research will analyze more detail about ads based on Day of Week per television

station.

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Figure 5 Total Food Ads in February 2010 All Channels

Figure 6 SIM Card Ads on TV Stations Based on Day of Week in February 2010

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Based on Figure 6 above, it can be seen that all television stations have the

greatest number of SIM Card Ads on weekday.

Figure 7 SIM Card Ads on TV Stations Based on TVR in February 2010

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Figure 7 shows the relationship between program TV rating (x) and total number

of ad (y) on all television stations. The figure indicates that SIM Card product

choose low rating programs.

Figure 8 SIM Card Ads on TV Stations Based on Dayparts in February 2010

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Figure 8 shows the relationship between hours and total number of Ads. From the

figure above, it can be seen that SIM Card category ads are advertised 24 hours.

V. Conclusion, Suggestions and Further Research

5.1 Conclusion

1. On the average, all television stations (RCTI, SCTV, TPI (MNC), Indosiar,

Global TV, Trans TV, Trans 7, TV One, Metro TV, and TV One) have the

highest number of Ads at the middle of the week, which is on Thursday (982

ads) and Friday (906 ads). There are very significant difference between the

number of ads on weekends and workday. On weekend the number of ads is

about 600 advertisements only, but on workday almost reached the number of

1000.

2. Most corporate advertisers prefer to make advertisement on workday than

weekend. In this research found that all of the television stations have more

expensive average rate on weekend than on workday. This may be one reason

why the number of ads on workday is more than on weekend, it is because the

price is cheaper.

3. Some television stations still have more ads in the higher rate (more expensive),

than the regular rate. This finding represent that some advertisers tend to

consider other aspects such as rating and the number of viewer, not about the

advertising rate. So, although the price of best performance time is higher, it

still has the highest number of ads.

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5. Each television stations have the highest number of ads in at a certain time. It is

different one to another station. In conclusion, television stations have the

highest number of ads not always in the prime time (18.00-19.00).

6. A television program that has high rating not always attracts more ads.

5.2 Suggestions

To maximize awareness and be effective, the advertising must reach the

maximum number of the target audience. The advertiser can concentrate

commercials in areas where market potential is greatest. By choosing higher

rating program, advertiser could reach larger viewer. So, it would optimize the

effectiveness of the Advertising.

Another consideration of corporate advertiser in buying TV time is selecting the

right period and program for advertiser’s commercial messages. The various day

part segments attract different audiences in both size and nature, so advertising

rates varies accordingly. This is important to advertisers since they attract

different demographic groups. Advertisers must decide when to air commercials

and on which programs.

5.3 Further Research

For further research, a longer period of research can be used (yearly data

processing). Further research could also measure the relationship between

variables using tools such as crosstab analysis which is better than using excel

graphic processing.

References

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