Market Trends of Indonesia Digital Advertising Industry
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.
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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.
