Rising E-commerce Market & ITES sector coupled With Growing Online Population will Support Online Advertisement Market Growth: Ken Research

Indonesia has been considered as the biggest market for e-commerce among the other emerging Asian economies. The rising trend in e-commerce market serves conducive for the online advertising market in the country. Aligning with the growth in ecommerce industry online advertising market has also enhanced.

Rising penetration of internet and mobile phone connections in Indonesia is also a major factor that positively affects the online advertisement market. Increased usage of smartphone, internet and social media has opened new ways for creative developments within the country. Since 2011, online advertisement spending had been showing a phenomenal growth in Indonesia which can be considered as favorable factor for online advertising market.

Targeting the customer group through social networking sites such as Facebook, Twitter, Linkedin, Youtube and other platform has become a trend in the recent past and the number of social media users is been witnessing a steady growth. Social networking sites such as Facebook and Twitter has recorded the highest percentage of user penetration in Indonesia among the other growing Asia Pacific economies in 2016. With these developments, product promotion through social media is regarded as effective as it offers a wider reach and more targeted users and it has gained great importance among the other promotional methods.

In line with the major trends which have governed the online advertising market in Indonesia, there are few challenges that have undermined the growth. Indonesia has poor hosting infrastructure. The internet speed has still not reached the required pace. The major challenge faced by the advertisers is to ensure that the advertisement have reached the intended end user. In addition to this, there is an immense competition from the traditional advertising methods such as television and print media. The gap between television advertising and online advertising is huge in terms of advertisement expenditure. Another major challenge being faced by advertisers is the hefty fees charged by the publishers.

Various measures can be adopted to curb the challenges hindering the growth of online advertising market. Primarily, the success and growth of online advertising is fully dependent on internet performance. Internet infrastructure can be improved adopting through various measures such as the publishers and the agencies can tie up with the mobile network providers or the local internet providers to improve the access to internet as in case of Google’s Loon. Apart from this the Indonesian government can also participate in improving the internet speed by setting a minimum speed to be delivered to the broadband users or by accelerating the number of fiber-optic cables.

The report titled “Indonesia Online Advertising Market Outlook to 2021- Significant Rise in Internet, Mobile and Social Media User Penetration to Drive Growth” provides detailed overview on the online advertising market in Indonesia. This report helps readers to identify the ongoing trends in the industry and anticipated growth in future depending upon changing industry dynamics in coming years. The report is useful for retail and FMCG companies, telecommunication companies, advertising agencies, advertising networks and other stakeholders to align their market centric strategies according to ongoing and expected trends in the future.

Topics Covered in The report