Excite Talks About its Plans For Indonesia, Will Reward Click-Happy Users

Japanese online service provider Excite recently launched its advertising-based points program called Excite Points, claiming to be the first of its kind user reward system in Indonesia. We talked to Nobu Kiyohara, the manager of Excite business development group [1], about the company’s expansion plans in the country.

We understand that in the last year, Excite Japan has started to look to expansion into other Asian countries, notably Taiwan and Indonesia, with the Philippines next in sight. In Taiwan, Excite has invested in two companies: e-commerce platform PCHome, and women-oriented review site Fashion Guide. Nobu added that they also tried to expand to China, but it was hard for them to identify the right market there. Should its points system prove successful in Indonesia, Excite plans to bring it to the Philippines next.

So how do Excite Points work? As shown in the above graphic, users login to the website and earn points through online activities, such as clicking a banner, subscribing to Groupon, getting a quote from an insurance company, or making purchases. Basically, it’s gamification. The points can then be redeemed for prizes at the Excite Points website.

At the moment, the program is still in the testing phase, and so the redemption options are only in the form of SmartFren phone credit top-ups. To provide more redemption options, Excite is looking to partner with Indonesian telcos Telkomsel and Indosat in the next couple of months. Excite also plans to add other products such as gadgets and more merchant’s products in the future.

The points are funded by the advertisers, or whoever sets the online activity. The company will pay Excite based on CPA (Click per Acquisition) according to what the advertisers want, like sending a quote on new auto insurance, for example. Excite explains that the CPA method offered by the program makes more sense than the usual CPC (Cost per Click). This is because the latter doesn’t guarantee that users complete the advertiser’s target activity even when they have seen and clicked on the ads, as explained on the following slide:

Nobu claims that Excite Points advertisements are better than Google Adsense and Adwords in acquiring potential customers. Google can help you acquire customers, he says, who are already interested in the product, according to user search keywords and content. While Excite Points can help acquire potential customers who might not even know about the product. The points program can introduce products to new customers who are actively seeking to earn points on the website. Of course, I’d personally say that each method has its own strengths and weaknesses.

On the Indonesian Market and Foreseeable Problems

Right now, Excite is looking to expand aggressively into the Indonesian market with its points system in terms of users, but especially advertisers. Nobu added: