Local telco Indosat gets into adtech with Smaato in Indonesia

Indonesian telco Indosat is launching a new adtech product this week at the Mobile World Congress event in Barcelona. It’s called Indonesia Mobile Exchange (IMX), a mobile-first real-time bidding (RTB) advertising exchange. Essentially, it’s a mobile auction block where digital ads for an Indonesian audience can be bought and sold.

The project is a joint venture between Indosat and Smaato, a global mobile RTB ad exchange. Indosat’s existing mobile advertising offering i-klan, which currently sits within the firm’s digital services unit, will become part of the joint venture.

IMX lets Indonesian and global advertisers connect with publishers in the archipelago and provides firms with targeted advertising to local consumers. Indonesia is one of the most promising digital advertising markets in the world in terms of the number of monthly impressions and growth potential, according to Indosat.

While Smaato claims its mobile exchange technology already delivers close to 5 billion impressions a month in Indonesia, IMX will further utilize Indosat’s customer base of 60 million mobile subscribers for more exposure.

Indosat is owned by Qatar-based Ooredoo.

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“Indosat has been passionate about creating a strong digital services ecosystem in Indonesia for many years,” said Alexander Rusli, Indosat’s president director and CEO in a statement. “Mobile advertising, mobile commerce and mobile payments are all critical components of this ecosystem as they revolutionize the way companies interact with consumers. With the Smaato partnership we can help connect smart and meaningful advertising to Indonesian consumers at a scalable size and with faster speed.”

“Indonesia, with its large population and high advertising spend, is one of the most important markets for Smaato globally,” said Ragnar Kruse, Smaato’s founder and CEO.

IMX will be steered by Indosat’s digital services unit, which focuses on mobile commerce and mobile payment solutions, among other initiatives. Indosat hopes to help build one of the world’s largest digital ecosystems in Indonesia. The firm has its work cut out for itself, however, as it must compete with the likes of Adskom and Adplus, which are also aggressive adtech companies in Indonesia with similar offerings.