Get a demo Do I subscribe? News sign-up
Print

Digital, mobile surge in Indonesia

News, 23 September 2015

JAKARTA: Spending on digital and mobile advertising in Indonesia is set to take off over the next five years, making it the second-fastest-growing ad market in the world, new forecasts suggest.

According to figures from researcher eMarketer, advertisers will spend $11.39bn this year in Indonesia across all media, a 16.0% increase over 2014. In 2016, total media ad spending will grow by another 16.0% and double digit increases are expected every year out to 2019. Only Argentina will grow faster.

Digital adspend, however, will outpace traditional media – it is growing more than four times as fast – and this will help push its share of the total ad market from 7.3% in 2015 to 25.1% by 2019.

And within that, mobile is the driving force, with its share of digital advertising expenditure predicted to jump from 17% in 2015 to 60% by 2019. When considered as a share of total media adspend, its share rises from 1.2% to 15.0% over the same period.

More than 54m Indonesians access the internet via a smartphone, according to data released by We Are Social. Half of all online activity in Indonesia is done on mobile, and an estimated 93% of the country's internet users have mobile-access capability. Laptops and desktops account for 45% of activity and tablet take up just 4%.

The average user also spends some three hours a day on mobile social media and an Esomar paper noted how this was a factor in changing Indonesian society, which is no longer so collective and conformist as people find an outlet for individual expression.

The authors reported that a divide between "adaptationist" and "individualist" was also evident in attitudes to brands and advertising, with the latter more willing to try new products and to see brand choice as reflecting their own personality.

Data sourced from eMarketer, Tech in Asia; additional content by Warc staff