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Brands turn to Facebook in Indonesia

News, 23 January 2015

JAKARTA: In Indonesia, major brands such as Coca-Cola and Oreo are increasingly turning away from TV and looking to Facebook first when planning campaigns.

"The Facebook population in Indonesia is massive, and Coca-Cola's core target audience is engaged on this platform," Quinn Donato, media and interactive manager for Coca-Cola Indonesia told Campaign Asia-Pacific.

With 37m daily active users and 71m monthly active users, 89% of both groups on mobile, the country has one of the largest Facebook populations in the world. Almost all those who are online (98%) use the platform, compared to 54% for Google+ and 44% for Twitter.

Coca-Cola opted to use this platform last year during the FIFA World Cup when it wanted to highlight its role as a sponsor with teens and young adults. A music video – a local adaptation of a global idea – reached 32% of the target market and achieved measurable uplift in ad recall in message association.

"We had rich anthem video content," said Donato, "and Facebook's News Feed makes it easy to play videos particularly on mobile."

A similar demographic was the target for Mondelez when it launched Oreo Mini, a version of the popular biscuit brand.

"In Indonesia, it is common practice for Mondelez to use TV to launch products," according to Lisa Walton, regional strategy director at Dentsu Mobius. "However, TV is nearing 100% saturation for the target audience and clutter is a major issue."

Mondelez used Facebook to cut through that clutter and far exceed its target of reaching 13.7m young adults while also gaining a five-point increase in purchase intent for the Oreo brand.

"Real business results can be achieved through social media," said Walton. Another finding she reported from this campaign was that "the channel can be an important choice to activate mums rather than just reach the younger millennials".

Social is far from becoming the primary channel, although that could change within the next decade. "Indonesia as a whole is still a TV-first market," said Ian Loon, regional director of the digital leadership team for Southeast Asia at Starcom MediaVest Group.

"Within its cities, mobile is primarily driving internet-first societies. The country should become internet-first within the next ten years, driven by rising affluence and lowering affordability of devices."

Data sourced from Campaign Asia-Pacific; additional content by Warc staff