Indonesia’s mobile ad market shows upward trend, study finds

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The previous year was eventful for the mobile industry in the Asia Pacific especially in Indonesia, as more consumers are deserting desktops for mobile devices. Right from socializing, banking, travel planning, to purchasing groceries, mobile has become ingrained in a consumer’s life.

As mobile technology and innovation continue to pave the way forward, below are the mobile marketing trends Indonesia could see in 2017, based on data from the InMobi network.

1. Mobile video advertising is all set for take-off

Mobile video, set to comprise two-thirds of all mobile traffic and more than half of online ad spend, is a highly valuable investment for advertisers. The study saw a 381 percent growth in video ad consumption by Indonesian users in 2016 and has witnessed a significant growth of 744 percent in terms of ad spend. It is certainly becoming clear that more advertisers want to reap the benefits of an immersive and engaging ad experience in Indonesia.

2. Location-based marketing is becoming sharper

As location technology continues to improve by leaps and bounds, the focus of geo-based marketing will be to reduce user spillage while tightening the targeting of radii/fences. According to BIA/Kelsey, the explosion of smartphones will propel global location-targeted mobile ad revenues toward the US$18 billion mark by 2019.

3. Mobile-first thinking becomes imperative for brand marketers

Brands have an opportunity to build clutter-breaking mobile creatives that deliver a more immersive brand experience to users. Two examples of award-winning creatives in Indonesia include Rexona Streetview and Ponds Acne where the power of augmented reality and location targeting were leveraged to deliver a contextual message, evoke an instant emotional response from users, and create a unique brand experience.

4. Integrated marketing across platforms poised to grow

The research indicates that brand campaigns show better results when delivered as integrated TV and mobile campaigns as compared to TV-only efforts. This multi-screen approach, when compared to standalone TV campaigns, significantly improved campaign metrics such as purchase intent and reduced costs. The research also indicates that mobile creatives generated 50 percent higher purchase intent and 15 percent higher product interest as opposed to TV ads.

5. Performance advertisers are moving from installs to re-engagement

The mobile app ecosystem has reached a tipping point where app developers deem user retention to be as important as acquisition. Indonesia’s commerce market is expected to see up to five-fold growth from US$1.7 billion in 2016 to US$8.5 billion by 2020, making user retention as important as user acquisition.

6. Programmatic remains nascent but presents a huge growth opportunity

Advertisers were cautious and hesitant to dip their toes in programmatic waters in 2016. However, this is all set to change in the coming years, as significant advancements are being made by advertisers to leverage this channel. The potential of programmatic video in Indonesia is huge. The study saw an 800 percent annual growth in mobile programmatic ad spend in 2016, a key indicator that the technology presents a tremendous opportunity for growth.

7. Viewability and measurement matter

The challenge to confirm effective measurement and attribution of mobile advertising is raising the demand for accountability across brands and agencies. Getting customer data from apps is important and will help drive marketing efforts, but it is important to understand what is being measured and how to turn a good idea of measuring marketing activity into something that is clear, focused, and actionable.

You can view the rest of the findings here: