According to the publisher, Digital Advertising Spend in the country are expected to grow by 8.5% on an annual basis to reach US$3,076.0 million in 2023.
Medium to long term growth story of Digital Advertising Spend in Indonesia remains strong. Digital Advertising Spend adoption is expected to grow steadily over the forecast period, recording a CAGR of 8.2% during 2023-2027. The Digital Advertising Spend Value in the country will increase from US$2,834.4 million in 2022 to reach US$4,220.8 million by 2027.
To grow in the highly competitive market, marketers have increased their advertising dollars in Indonesia over the last few years. Despite the uncertain economic environment, digital ad spending continued to grow in 2022, and the trend is projected to further continue in Indonesia in 2023.
The growing internet penetration rate and increased time spent on digital channels such as on-demand streaming platforms are driving more brands to spend their marketing dollars online. Overall, the publisher maintains a robust growth outlook for the Indonesian online ad spending industry over the next three to four years.
According to a report from The Trade Desk and Kantar, two in three Indonesians are expected to increase their time spent on open internet channels in 2023. This shows that the focus on premium content is growing when compared to user-generated content on Social Media platforms. In addition to their shift from Social Media platforms to OTT channels, consumers have also said that they trust brands that advertise on OTT.
This shift in consumer behavior is expected to drive more digital marketing dollars on OTT platforms over the next three to four years. This will subsequently aid the growth of the online ad spending industry in Indonesia from the medium to long-term perspective.
However, the macroeconomic factors, including rising inflation and subsequent declining venture capital funding, meant that the firms operating in the sectors had to scale down their marketing dollars. Some players, including foreign firms like Cars24, have even shut operations in Indonesia. Going forward, in 2023, the publisher expects more firms to shut operations owing to macroeconomic factors. This will have a direct impact on the online ad spending market in Indonesia.
As fintech firms and startups operating in other sectors find it difficult to raise venture capital and private equity funding, they are likely to push back on their ad spending, in exchange to extend their run way. Consequently, hampering the growth of the online ad spending industry in Indonesia in 2023. As a result,
This report provides a detailed data-centric analysis of the Digital Ad Spend industry, covering market opportunities and risks across a range of industry categories. With over 50 KPIs at the country level, this report provides a comprehensive understanding of Digital Ad Spend market dynamics, market size and forecast, and market share statistics.
It breaks down market opportunity by type of pricing model, platform (mobile and desktop/ laptop), and channels. In addition, it provides a snapshot of marketing objective and industry spend dynamics in Indonesia. KPIs in both value and share term help in getting in-depth understanding of end market dynamics.
The research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view on emerging business and investment market opportunities.
Medium to long term growth story of Digital Advertising Spend in Indonesia remains strong. Digital Advertising Spend adoption is expected to grow steadily over the forecast period, recording a CAGR of 8.2% during 2023-2027. The Digital Advertising Spend Value in the country will increase from US$2,834.4 million in 2022 to reach US$4,220.8 million by 2027.
To grow in the highly competitive market, marketers have increased their advertising dollars in Indonesia over the last few years. Despite the uncertain economic environment, digital ad spending continued to grow in 2022, and the trend is projected to further continue in Indonesia in 2023.
The growing internet penetration rate and increased time spent on digital channels such as on-demand streaming platforms are driving more brands to spend their marketing dollars online. Overall, the publisher maintains a robust growth outlook for the Indonesian online ad spending industry over the next three to four years.
Online shopping and gaming are leading the digital advertising market growth in Indonesia
According to a report from Nielsen, Indonesian digital ad spending increased by 5.02% to reach US$19.2 billion in 2022, when compared to 2021 data. This growth in digital ad spending was led by the online shopping and gaming sector in Indonesia.- Unilever, Mayora, and Valorant were among the top three digital ad spenders in Indonesia in 2022, according to the Nielsen report. In 2023, Unilever is expected to further increase its marketing dollars, which indicates that the firm will continue to lead the online ad spending in the Southeast Asian market from the short to medium-term perspective.
- The digital commerce channels reported a growth of 23% for Unilever in 2022 and currently represent 15% of the total revenue for the firm. Going forward, Unilever expects the segment to emerge as a key growth driver. Consequently, the firm is expected to increase the spending on the promotion of its digital channels, which will also aid online ad spending in Indonesia.
Indonesians are more likely to trust brands that advertise on on-demand streaming platforms
The growing smartphone and internet penetration mean that consumers are spending more time online than ever before. The pandemic further accelerated the trend, as on-demand streaming services attracted viewers to their platforms. In 2023, Indonesians are expected to further increase their screen time on OTT platforms.According to a report from The Trade Desk and Kantar, two in three Indonesians are expected to increase their time spent on open internet channels in 2023. This shows that the focus on premium content is growing when compared to user-generated content on Social Media platforms. In addition to their shift from Social Media platforms to OTT channels, consumers have also said that they trust brands that advertise on OTT.
This shift in consumer behavior is expected to drive more digital marketing dollars on OTT platforms over the next three to four years. This will subsequently aid the growth of the online ad spending industry in Indonesia from the medium to long-term perspective.
Funding winter might impact digital ad spending of new-age startups in Indonesia in 2023
Over the last few years, several innovative startups have emerged in the Indonesian market serving different industries, including financial, e-commerce, and automotive. The growing digital-savvy population, coupled with the fast-growing economy, meant that the players had a significant headroom for growth in Indonesia.However, the macroeconomic factors, including rising inflation and subsequent declining venture capital funding, meant that the firms operating in the sectors had to scale down their marketing dollars. Some players, including foreign firms like Cars24, have even shut operations in Indonesia. Going forward, in 2023, the publisher expects more firms to shut operations owing to macroeconomic factors. This will have a direct impact on the online ad spending market in Indonesia.
As fintech firms and startups operating in other sectors find it difficult to raise venture capital and private equity funding, they are likely to push back on their ad spending, in exchange to extend their run way. Consequently, hampering the growth of the online ad spending industry in Indonesia in 2023. As a result,
This report provides a detailed data-centric analysis of the Digital Ad Spend industry, covering market opportunities and risks across a range of industry categories. With over 50 KPIs at the country level, this report provides a comprehensive understanding of Digital Ad Spend market dynamics, market size and forecast, and market share statistics.
It breaks down market opportunity by type of pricing model, platform (mobile and desktop/ laptop), and channels. In addition, it provides a snapshot of marketing objective and industry spend dynamics in Indonesia. KPIs in both value and share term help in getting in-depth understanding of end market dynamics.
The research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view on emerging business and investment market opportunities.
Scope
This report provides in-depth data-centric analysis of Digital Ad Spend industry in Indonesia through 57 tables and 67 charts. Below is a summary of key market segments:Indonesia Digital Ad Spend Market Size and Forecast
Indonesia Digital Ad Spend Market Size by Advertising Channel
- Television Advertising
- Print Advertising
- Radio Advertising
- Outdoor Advertising
- Online Advertising
- Direct Mail Advertising
- Event Sponsorship
- Others
Indonesia Digital Ad Spend Market Size by Online Ad Spend Market
- Search Engine Sites
- Ecommerce Sites
- News & Media Sites
- Social Media
- Gaming Platforms
- Forums & Classifieds
- Others
Indonesia Digital Ad Spend Market Size by Social Media Platform
- Line
- Tik Tok
- Others
Indonesia Digital Ad Spend Market Size by Gaming Platforms
- Digital Ad Spend Market Size Around Games Environment Ad Spend
- In Game Environment Ad Spend
- In Game Immersive Ad Spend
- Exclusive Advertising Games Spend
Indonesia Digital Ad Spend Market Size by Format & Media
- Video
- Display
- Influencer Marketing
- Blogging and Podcasting
Indonesia Digital Ad Spend Market Size by Platform
- Mobile
- Desktop and Laptop
Indonesia Digital Ad Spend Market Size by Pricing Model
- Cost Per Mile (CPM)
- Cost Per Click (CPC)
- Performance-Based Advertising
- Others
Indonesia Digital Ad Spend Market Size by Marketing Objective
- Branding
- Increase Traffic
- Direct Online Sales
- Lead Generation
- Product Launch
Indonesia Digital Ad Spend Market Size by Industry
- Technology
- Increase Travel & Hospitality
- FMCG
- Automotive
- Media & Entertainment
- Telecommunications
- Retail & Consumer Goods
- Business and Financial Services
- Pharmaceutical and Healthcare
- Public Sector
- Construction and Real Estate
- Education
- Home Appliances and Furniture
- Other Industries
Reasons to buy
- Gain a thorough understanding of the Digital Ad Spend market dynamics: Market opportunities, significant trends, and forecasting (2018-2028) are listed. To stay ahead of the curve, comprehend market trends using important KPIs like Value and Share.
- Insights by Industry: Evaluate new opportunities across multiple industries, and obtain market dynamics by industry in order to swiftly catch up with the latest and upcoming developments in Digital Ad Spend markets.
- Market-specific strategies: With our unique blend of quantitative forecasting and cutting-edge insights, we can identify growth sectors that are focused on particular opportunities and analyse market-specific risks as well as significant trends in the Digital Ad Spend industry.
- Through industry intelligence, forward-looking research of Digital Ad Spend market spend, and key opportunities in Indonesia, develop proactive and profitable company plans.
Table of Contents
1. About this Report
3. Indonesia Digital Ad Spend Market Share by Advertising Channel, 2018-2028
4. Indonesia Digital Ad Spend Market Share by Online Ad Spend Market, 2018-2028
5. Indonesia Digital Ad Spend Market Share by Social Media Platform, 2018-2028
6. Indonesia Digital Ad Spend Market Share by Gaming Platforms, 2018-2028
7. Indonesia Digital Ad Spend Market Share by Format & Media, 2018-2028
8. Indonesia Digital Ad Spend Market Share by Platform, 2018-2028
9. Indonesia Digital Ad Spend Market Share by Pricing Model, 2018-2028
10. Indonesia Digital Ad Spend Market Share by Marketing Objective, 2018-2028
11. Indonesia Digital Ad Spend Market Share by Industry, 2018-2028
12. Further Reading
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 81 |
| Published | May 2023 |
| Forecast Period | 2023 - 2027 |
| Estimated Market Value ( USD | $ 3.1 Billion |
| Forecasted Market Value ( USD | $ 4.2 Billion |
| Compound Annual Growth Rate | 8.2% |
| Regions Covered | Indonesia |
