Digital Advertising Indonesia 2020 Is Still Growing Rapidly
Digital advertising Indonesia 2020 market will keep growing fast according to the 2020 Global Ad Trends report from PubMatic. This growth will be led by programmatic ads digital spending budget whose value is predicted to reach more than $ 500 million (around Rp6.8 trillion) or grow to 54 percent. One key driver of the development of programmatic ads in the digital advertising Indonesia 2020 market is the trend in the use of video ad media formats. Indonesia will see programmatic video ads spending grow almost double this year and make it the fastest-growing market for video formats in the world according to PubMatic.
In addition, PubMatic also notes that the majority of ad spending share globally will be spent in the digital sector until 2021. Digital display ads, including video, will be the fastest-growing ad format. Overall, digital advertising is predicted to contribute to half of the total spending on media advertising spending worldwide.
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Total global digital advertising spending in 2020 alone is projected to reach $435.8 billion (around Rp5,946 trillion), growing by 56.6 percent. Countries such as America, China, the UK, Japan, and Germany are the countries that will lead this growth with a large budget.
Programmatic ads is an automated process for buying and selling ad inventory through an ad exchange that connects advertisers with publishers. Understanding programmatic ads at the most basic level means realizing that this is an automatic process. This process basically uses machines and algorithms in the process of buying and selling ad space with real-time bidding for a variety of inventory channels such as cellular channels, displays, videos, social media, even to television.
With all the conveniences and benefits offered, it is natural that programmatic ads become one of the attractive weapons of advertisers in the digital age. The growth trend of programmatic ads is still increasing steadily. According to PubMatic, digital programmatic ads transactions are estimated to represent more than two-thirds of digital display ads expenditure worldwide in 2020. Same as last year, but with increasing value.
In Indonesia alone, programmatic ads have shown stretching growth since 2019. InMobi in the report of The State of Mobile Programmatic Buying Southeast Asia 2019 noted that in 2019 Indonesia was the most attractive programmatic market in Southeast Asia. About 56 percent of InMobi respondents mentioned that they wanted to increase investment in programmatic ads to achieve their marketing goals.
For the Indonesian digital advertising market 2020, the latest PubMatic report is even bolder. Indonesia's total programmatic ads expenditure is estimated to grow by 54 percent with a value that can reach more than $ 500 million (around Rp6.8 trillion). This growth continued growth last year and when it was achieved then Indonesia became the fastest-growing programmatic ads market in 2020 along with India and Brazil.
The fact the popularity of video formats can also be thickened with Telkomsel video consumption data that continues to increase. Data consumption on video can reach 33 percent of Telkomsel's total data consumption as quoted by the 2019 MMA Indonesia Mobile Ecosystem Report. In 2020, Telkomsel's video data consumption is predicted to reach more than 120 petabytes.
Therefore, it is natural that video formats become the main driver for the development of digital advertising expenditure. According to PubMatic projections, Indonesia will see programmatic video ads spending grow almost double by 2020. Its value could reach more than $350 million (Rp4.8 trillion) or grow up to 85 percent. If realized, this would make Indonesia the fastest growing market in the world for video ad formats.
Unfortunately, in this report, PubMatic does not include data on mobile advertising growth for the Indonesian digital advertising market 2020. However, when referring to the previous data, digital marketers and advertisers should not need to worry. Until 2022, the growth rate of mobile ads globally will remain at double digits according to PubMatic. The same trend in Indonesia should naturally follow.
Indonesia itself is one of the largest markets for mobile devices in the Asian region, especially in Southeast Asia. According to eMarketer data quoted by Marketing Interactive, last year there were around 89.8 million smartphone users in Indonesia and the number could increase to 42.8 percent of the total population in 2023. This means that pieces of cake for digital advertising players are still widely available in the Indonesian digital advertising market 2020.
As a Telkomsel business unit that focuses on the digital advertising sector, Telkomsel DigiAds continues to strive to develop and improve service quality. One strategic step taken is to provide and improve the quality of display inventory and video ad space, especially in the realm of mobile advertising.
Internally, the quality of the improved ad space is in the MAXstream application, MyTelkomsel, Langit Musik, and the World Games portal. On the external side, partnerships with third parties that enable advertisers to be able to implement more consistent strategies across all of Telkomsel's digital channels have been established. Thus, advertisers can take an integrated approach to the market and gain a deeper understanding of the performance of their advertising campaigns
Another innovation was born from the ROLi application that allows users to be able to get various information and prizes just by interacting with the content, features, and programs in it. This inventory also gives advertisers the choice of new ad channels. Now they can target their segments with better engagement and awareness from ROLi users throughout Indonesia through application features such as Lock Screen, Parallax advertisements (news feeds), and in-app ads (Watch ads, Surveys, Carousels).
Indonesia is moving towards a new digital era that makes business owners and entrepreneurs more understanding of technology and open-minded towards new technology. Thanks to strong capital, large companies along with local unicorn startups can continue to adopt the latest ad-tech products and services.
On the other hand, small and medium enterprises (SMEs) must struggle to keep abreast of developments because they do not have the resources or capital to master digital advertising. This creates a knowledge gap in digital advertising between large companies and SMEs, leaving them far behind.
Through Telkomsel MyAds service, this gap is expected to be smaller. Telkomsel MyAds is the initial foundation for the activation of digital marketing SMEs. Through MyAds, these SMEs are facilitated to create and send advertisements to Telkomsel users throughout Indonesia as needed.
Ads made on Telkomsel MyAds can be sent by broadcast, targeted, or LBA. While there are currently three media used, namely SMS, MMS and USSD. Throughout 2019, Telkomsel MyAds has grown exponentially and shows its existence as a digital advertising platform. By making interface changes and conducting roadshows for service dissemination throughout Indonesia, Telkomsel MyAds has embraced tens of thousands of SME partners throughout 2019.
The digital advertising industry is a creative industry that is quite fast in adopting change. With the rapid movement of innovation in the digital field, it is certain that the digital advertising landscape of Indonesia 2020 and in the future will also continue to change.
Therefore, Telkomsel DigiAds will continue to strive to grow into a "digital marketing solutions provider" that is able to provide complete, integrated and innovative digital advertising services that can also maximize reach, efficiency, and flexibility. Not only by utilizing Telkomsel's extensive network but also supported by a comprehensive customer Data Management Platform (DMP).
Telkomsel DigiAds are part of Telkomsel. Contact us via email at digitalads@telkomsel.co.id if you are interested in becoming a partner. Follow us on social media like Instagram and LinkedIn to find out more about insight and also our latest activities.
