Indonesia Digital Advertising Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 3.05 Billion |
| Market Size (2029) | USD 4.04 Billion |
| CAGR (2024 - 2029) | 5.77 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Indonesia Digital Advertising Market Analysis
The Indonesia Digital Advertising Market size is estimated at USD 3.05 billion in 2024, and is expected to reach USD 4.04 billion by 2029, growing at a CAGR of 5.77% during the forecast period (2024-2029).
Digital advertising is emerging as an effective way for businesses to find new customers and diversify their revenue streams. Digital advertising is cost-effective, as it is pay-per-click and allows users only to pay when someone takes the desired action of their campaign. Furthermore, its targeting capabilities enable the most qualified people to take desired actions.
- The growing proliferation of social media to engage and discover audiences has increased the demand for display ads. Social media ads build brand awareness due to their reach and creative design capabilities. These ads are minimally disruptive and blend well with users' feeds effortlessly, allowing them to be liked, shared, and commented. Such favorable features are driving Indonesia's social media ads segment.
- As Southeast Asia's one of the fastest-growing economies, Indonesia presents an opportunity for marketers and advertisers. Most of Indonesia's digital ad bounty is allocated to online search ads, digital banner ads, and digital video ads that offer versatility and precision, empowering advertisers to impact their target audience significantly.
- Businesses in Indonesia are embracing the potential of digital platforms, which is crucial for success in Indonesia's advertising landscape. End-user industries such as travel, tourism, and hospitality are launching campaigns encouraging consumers to rediscover their passion for travel. Tourism Indonesia has unveiled a captivating campaign aimed at a global audience to promote the country's tourism industry.
- B2C services are witnessing significant growth in Indonesia's digital advertising market. Customer purchase behavior has changed, and online shopping is now normal. Increased digital customer presence is encouraging the brands to invest in their marketing spend across all digital channels. The increase in online shopping, virtual events, and digital content consumption is anticipated to boost the demand for digital marketing in Indonesia to reach and engage with audiences effectively.
Indonesia Digital Advertising Market Trends
Video Advertising to Grow at a Significant Rate
- The digital advertising market in Indonesia is growing fast, led by programmatic ads and digital spending budget. Rising trends in the use of video ad media formats are one of the key drivers of developing programmatic ads in digital advertising in Indonesia. Growth in programmatic video ad spending is anticipated to make it the country's fastest-growing market for video formats.
- The increase in Indonesian telecommunications company Telkomsel's video consumption data is anticipated to boost the popularity of video formats in Indonesia. According to the MMA Indonesia Mobile Ecosystem Report, video data consumption can reach 33% of Telkomsel's total data consumption. Therefore, video format has become the main driver for developing digital advertising expenditure.
- Indonesia is emerging as the fastest-growing market in the world for video ad formats. Videos are essential tools in mobile app marketing. In recent years, in-app video advertising has evolved into one of the most effective methods of advertising mobile apps, and more and more companies are reaping the benefits of in-app video marketing.
- Indonesia is witnessing a surge in in-app video advertising usage on mobile devices. The shift to online is growing due to user-generated content, social video, and various forms of premium video-on-demand, including freemium and SVOD platforms.
- Improvements in the quality of local content have helped drive user acquisition and engagement in Indonesia. YouTube and TikTok dominate viewership on mobile. YouTube also remains the leader in the VOD category in revenues, though TikTok is increasing its share, and Netflix leads SVOD. Global OTT players dominate the online video space in Indonesia. In terms of the number of paying subscribers, Disney+ Hotstar leads the way, followed by Vidio, Viu, and Vision, among others.
Media and Entertainment End-user Industry to Account for a Substantial Market Share
- According to Meltwater, a software company, Indonesia's vibrant digital economy is growing due to the rise of new startups and tech companies catering to the growing needs of Indonesian internet users. In Indonesia, the evolving digital media landscape presents exciting possibilities for companies and brands. The amount of people using the Internet is growing steadily in Indonesia, making it one of the largest Internet markets in the world.
- The rising automation in the entertainment industry, such as moving objects, lighting technology, AV and media technology, and building automation, has led to the increased demand for PC-based control. Technological advancements have made PC-based control technology suitable for implementing technically sophisticated stage and media shows, propelling the segment's growth.
- Companies in Indonesia are focusing on advertising revenue despite the presence of companies such as Google and Facebook. For instance, IDN Media is a media platform company in Indonesia. It provides a wide variety of compelling content and marketing and support for the advertisers. IDN provides digital media with its branding, theme, and content in a single platform called IDN App. This includes news and entertainment, fashion and beauty, esports, cooking, and other topics whose audience sufficiently attracts advertisers and sponsors.
- Media and entertainment companies in Indonesia strive to bridge the information gap. Companies are utilizing digital advertising to provide everyone in Indonesia with access to quality information. Media platform companies offer news and entertainment, fashion and beauty, parenting, esports, cinema, and out-of-home (outdoor) advertising to connect all the users in the ecosystem, plugging everything into their advertising system to generate revenues.
- Market vendors are exploring new offerings, such as combining out-of-home (outdoor) and creative marketing platforms with their other businesses to provide a 360 solution to the client. They are also creating a super app for content, a one-stop media platform for content creation and content distribution, to grow and be more sustainable.
Indonesia Digital Advertising Industry Overview
The Indonesian digital advertising market is fragmented because of the presence of several companies. Some key players are Accenture, Microsoft, Hewlett Packard Enterprise Development LP, Oracle, Intel Corporation, Google LLC, Amazon Web Services Inc., and SAP SE. Players in the market are introducing innovative solutions and forming partnerships to gain competitive advantages. For instance,
- In December 2023, with the growth in the advertising landscape in Indonesia, Aspire, Meta, and Bank Aladin collaborated to empower small and medium enterprises (SMEs) in Indonesia by offering productive loans in the form of credits. The collaboration enables businesses to tap into the vast potential of digital advertising on platforms like Facebook and Instagram. Many smaller internet marketers need help paying for their Meta campaigns with traditional cards, leading to delays in their campaign efforts. The collaboration between Aspire and Meta will allow the Aspire Card to be accepted as a payment method within the Meta platform.
- In June 2023, Thoughtful Media Group Inc. (TMG), a social commerce-focused, premium digital advertising network of Society Pass Incorporated (SoPa), acquired Newave, an Indonesia-based KOL management agency. With Newave onto TMG's ever-expanding TMG regional platform and merging Newave's dominant position in the nano and micro-influencer space with TMG's social commerce-focused ecosystem, the firm will provide additional channels for brands to market their products and services.
Indonesia Digital Advertising Market Leaders
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IBM Corporation
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SAP SE
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Amazon Web Services, Inc.
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Oracle
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Intel Corporation
*Disclaimer: Major Players sorted in no particular order
Indonesia Digital Advertising Market News
- December 2023: Accenture announced the acquisition of the business of media and marketing technology company Jixie. Jixie’s digital marketing platform will be integrated into Accenture to strengthen its marketing transformation capabilities, helping Indonesian clients deliver more personalized experiences to enhance customer engagement for sustainable business growth.
- December 2023: ByteDance Ltd’s TikTok agreed to invest in a unit of Indonesia’s GoTo Group and cooperate on an online shopping service, pioneering a template for e-commerce. The Chinese-owned video service has agreed to work with GoTo’s Tokopedia across several areas. ByteDance aims to revive its online shopping service in Southeast Asia’s most significant retail arena.
Indonesia Digital Advertising Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Buyers
4.2.2 Bargaining Power of Suppliers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitutes
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Value Chain Analysis
4.4 Assessment of Macro-economic Factor and its Impact on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Ongoing Shift from Traditional to Online Advertising
5.1.2 Increasing Use of Recommendation Engines
5.2 Market Restraints
5.2.1 Lack of Communication Between Publisher and Advertiser
6. MARKET SEGMENTATION
6.1 By Type
6.1.1 Audio Advertising
6.1.2 Video Advertising
6.1.3 Influencer Advertising
6.1.4 Banner Advertising
6.1.5 Search Advertising
6.1.6 Classifieds
6.2 By Platform
6.2.1 Desktop
6.2.2 Mobile
6.3 By Industry
6.3.1 FMCG
6.3.2 Telecom
6.3.3 Healthcare
6.3.4 Media and Entertainment
6.3.5 Other Industries
6.4 By Region
6.4.1 Java
6.4.2 Sumatra
6.4.3 Kalimantan
6.4.4 Other Regions
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Accenture
7.1.2 Microsoft
7.1.3 Hewlett Packard Enterprise Development LP
7.1.4 Apple Inc.
7.1.5 IBM Corporation
7.1.6 Oracle
7.1.7 Intel Corporation
7.1.8 Google LLC
7.1.9 Amazon Web Services Inc.
7.1.10 SAP SE
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. MARKET OPPORTUNITIES AND FUTURE TRENDS
Indonesia Digital Advertising Industry Segmentation
Digital advertising is the marketing through online channels, including websites, streaming content, spanning media formats such as text, image, audio, and video. Digital advertising enables users to achieve business goals ranging from brand awareness and customer engagement to launching new products and driving sales.
The Indonesian digital advertising market is segmented by type (audio advertising, video advertising, influencer advertising, banner advertising, search advertising, and classifieds), platform (desktop and mobile), industry (FMCG, telecom, healthcare, media and entertainment, and others), and by region (Java, Sumatra, Kalimantan, and other regions). The market size and forecasts are provided in terms of value (USD) for all the above segments.
| By Type | |
| Audio Advertising | |
| Video Advertising | |
| Influencer Advertising | |
| Banner Advertising | |
| Search Advertising | |
| Classifieds |
| By Platform | |
| Desktop | |
| Mobile |
| By Industry | |
| FMCG | |
| Telecom | |
| Healthcare | |
| Media and Entertainment | |
| Other Industries |
| By Region | |
| Java | |
| Sumatra | |
| Kalimantan | |
| Other Regions |
Indonesia Digital Advertising Market Research FAQs
How big is the Indonesia Digital Advertising Market?
The Indonesia Digital Advertising Market size is expected to reach USD 3.05 billion in 2024 and grow at a CAGR of 5.77% to reach USD 4.04 billion by 2029.
What is the current Indonesia Digital Advertising Market size?
In 2024, the Indonesia Digital Advertising Market size is expected to reach USD 3.05 billion.
Who are the key players in Indonesia Digital Advertising Market?
IBM Corporation, SAP SE, Amazon Web Services, Inc., Oracle and Intel Corporation are the major companies operating in the Indonesia Digital Advertising Market.
What years does this Indonesia Digital Advertising Market cover, and what was the market size in 2023?
In 2023, the Indonesia Digital Advertising Market size was estimated at USD 2.87 billion. The report covers the Indonesia Digital Advertising Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Indonesia Digital Advertising Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Indonesia Digital Advertising Industry Report
Statistics for the 2024 Indonesia Digital Advertising market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Indonesia Digital Advertising analysis includes a market forecast outlook for 2024 to (2024to2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
