Japan’s digital ad network, MicroAd Inc., has recently joint-ventured with start-up VC firm, PT Corfina Mitra Kreasi in Indonesia to form an online ad network company, PT MicroAd Indonesia. The company will begin its ad network business starting next month.
Suryanto Wijaya, CEO of MicroAd Indonesia explained to us that with a total investment of $214,000 from Corfina (51%) and MicroAd Inc. (49%), Indonesia is the second country after China to cooperate with MicroAd Inc., Japan.
As MicroAd is the leading online advertising agency in Japan, the Indonesia team expects to achieve a target of 100 to 200 clients this year. In a long run, MicroAd Indonesia aims to be a market leader in Indonesian digital ad networks.
MicroAd uses behavioral targeting technique, whereby the company collects data about Internet users and recommend to their clients the best way to place their online ads. MicroAd Indonesia also provides analytics which provide clients with information on how often the ads and the pages were clicked by Internet users.
I spoke to Wijaya, who shared his thoughts and goals on leading the company:
Ad network is still premature in Indonesia, but with the experience of Japan’s MicroAd, hopefully we can become the market leader and help Internet media service monetize in Indonesia. With a market size of 240 million people and also the second largest Facebook users nation in the world, Indonesia has huge potential. Indonesia’s Internet digital media advertising spent is approximately at US$120million, and we are confident to reach at least 10% of it.”
Many foreign companies only invest and exit after a real strategic investors. We, PT. MicroAd Indonesia are really committed in doing business for development in Indonesia. That is why we formed a joint venture with a majority stake of 51% from us. The Japanese have the same vision, and we commit ourselves to create a great business in Indonesia.
MicroAd isn’t the only Japanese company to enter the Indonesian Internet market recently. Rakuten, Japan’s e-commerce behemoth, also officially launched its service earlier this month in the nation. Check out our interview with the company’s head of marketing to find out why he thinks Rakuten will do well in Indonesia.
Two big Japanese internet companies in the span of a month… Could this be the start of a trend perhaps?