Digital advertising Indonesia 2019 is predicted to grow rapidly according to PubMatic’s 2019 Global Digital Ad Trends Report. It is estimated that Indonesia’s digital advertising spending will reach $2.6 billion (around IDR36.5 trillion) this year or increase 26 percent compared to last year. This is the highest growth rate, beating European countries such as Russia, Ireland, Sweden, France, the Netherlands, Italy, and Sweden.
Actually, the total of Indonesian digital advertising spending in 2019 is still small compared to America and China in PubMatic’s report. The two countries are the only market with digital advertising spending of more than $10 billion which is projected to grow at a double-digit rate in 2019. However, in terms of YoY growth percentage, they are still inferior to developing countries like Indonesia and India.
When viewed from% YoY change, Indonesia is in the top position with a percentage of growth reaching 26 percent. Followed by India (20%) in second place, Russia (19%), Thailand (15%), and Mexico (15%) which is in the top five positions, including Indonesia.
Digital advertising Indonesia market was flourished due to a number of factors. One of them is the increasing number of internet users which now exceeds half of Indonesia’s total population of 265.4 people. In addition, the development of advertising features on social media and online shopping trends also encourage businesses to campaign for brands and promote to the digital realm.
PubMatic also recorded that global digital advertising spending in 2019 is projected to reach $ 327.28 billion (around Rp.4,601 trillion), growing to 48.5 percent. Also, in the following year, it was predicted that the figure could reach $ 380.40 billion (around Rp5,346 trillion), or grow to 54.5 percent. When referring to this data, until 2020, a large portion of advertising spending will be spent on digital advertising and this will slowly shift conventional or traditional advertising trends.
Programmatic Ads on Digital Advertising Indonesia
Programmatic Ads become one of the methods or interactions that distinguish between digital and conventional advertising. In programmatic ads, almost all transactions can be completed automatically on one platform. Start choosing product services, consulting through chatbots, up to the payment process.
In fact, almost every advertising agency has adopted a programmatic system to provide comfort and efficiency in transactions. According to PubMatic, this trend will also move positively in 2019. Of total digital advertising spending globally, two-thirds will be spent on programmatic advertising.
In digital advertising Indonesia market, the trend of programmatic ads is in line with global trends. Programmatic ads in Indonesia are predicted by PubMatic will experience a rapid increase in 2019. It is estimated that total spending on programmatic ads in Indonesia will increase by 89 percent, reaching around $ 500 million (around Rp7 trillion) this year.
With this growth, Indonesia’s programmatic ads market has become the fastest growing in 2019 along with India (47%) and Brazil (45%). This growth rate far exceeds European countries such as France (26%), Germany (19%), and Italy (19%). Even so, in terms of the amount of value spent, Indonesia is still under these countries.
Mobile Ads in the Digital Advertising Indonesia Market
Mobile technology, which is now almost a technology trend in general, also drives the growth of mobile ads spending in the world. PubMatic estimates that total mobile spending this year will exceed $ 200 billion (around $ 2.811 trillion). PubMatic reported that the growth rate in this sector will remain in the double-digit region until 2022.
Similar to programmatic ads, the mobile ads sector in the digital advertising Indonesia market has become the fastest growing market in 2019. The growth of Indonesia’s mobile ads market from 2018 to 2019 is predicted by PubMatic to reach 34 percent.
This percentage is actually on par to Russia, but for the amount spent, Indonesia is still superior to the Red Bear Country. The total spending of Indonesian mobile ads is projected by PubMatic to reach $ 1,500 million (around Rp21 trillion).
In-app purchase also can be considered as one of the main drivers of the increase in mobile ads spending. After all, mobile internet adoption among consumers is indeed driven by applications. They spend more time there than through the mobile web.
In the second quarter of last year alone, the mobile device users who downloaded digital applications around the world were close to 30 million. So, displaying promotions or campaigning through applications is now a trend in digital advertising. It’s not surprising if the current applications in the market providing space to advertise.
ROLi application and Mobile Ads
ROLi, a digital lifestyle application designed by Telkomsel, can be an example. This application for Android mobile users can facilitate advertisers or brands to promote their products to Telkomsel customers that spread across the country. Today, around 1,800,000 Telkomsel subscribers have downloaded ROLi to their mobile devices.
The ROLi application also quite unique because it gives many benefits to users such as internet data quota, SMS package, and voice packages. Reward such as an internet data quota of 300MB can be obtained every month by the ROLi users and it is free of charge. They only need to activate the ROLi lock screen feature for 30 days straight on the device as the requirements.
So, in this lock screen feature, the content promoted by advertisers and brands will be shown to the ROLi users. This has the potential to increase brand awareness in the market. In addition, there is still a lot of advertising space that advertisers can use at ROLi. Like surveys, in-app display banners, or through videos on the watch ads menu.
Providing this unique and innovative experience is an advantage that is felt for mobile device users. So it is only natural that the current advertising trend is increasingly leading to digitalization, especially mobile.
In addition, the trend that is increasingly popular in all circles today is video. Nowadays, many people are happy to produce and watch videos.
Calculations conducted by PubMatic, the video became the main driving factor in the growth of digital advertising spending figures. They predicted, the increase in this domain can reach more than 70 percent in just four years (2018-2022).
Judging from the transaction method, spending on programmatic videos ads globally is estimated to increase 7.4 percent from last year, from 54.6 percent to 62 percent in 2019. While non-programmatic experienced a decline from 45.4 percent to 38 percent in the same period.
Of all the classifications above, spending on programmatic video ads in Indonesia is predicted to be the highest in 2019. The percentage is twice that of last year, reaching 105 percent.
A video is indeed undeniable as a trend that is very popular in the community. In Indonesia, in less than a year (January – September 2018), consumption of video content from all Telkomsel customers has increased by 67 percent, equivalent to 73 petabytes. If converted, this is tantamount to playing high definition (HD) quality videos for 8,618 years.
By 2020, video consumption of millions of Telkomsel customers is predicted to reach more than 120 petabytes. This trend shows that video will be a medium for advertising that is very potential for businesses.
If you read the trends and figures above, business people seem to be very excited to allocate a large budget to digital advertising. It is important for advertisers and publishers to read trend and data in digital advertising that can have a significant impact and influence on the market.
As the digital world is filled with aspects of data processing, so is the industry. Data is fundamental to determine various business decisions.
* The following is an infographic on Indonesia’s digital advertising market trends in 2019