Indonesia is moving towards achieving two-fold digital economy growth by 2025. Reports from Google, Brain & Company, and Temasek fixed the value of the Indonesian national digital economy at USD 77 billion in 2022. The reports also highlight that the digital economy is expected to double in growth by 2025 reaching an approximate figure of USD 130 billion. The fourth most populous country in the world, and with a growing digital landscape, is becoming an increasingly attractive market for digital marketers.
Recent rapid technological progress has delivered significant economic growth in Indonesia. The Indonesian economy is likely to garner USD 2.8 trillion by 2040 via digital technology adoption, adding 0.55 percentage points every year to gross domestic product growth between 2020 and 2040. The digital growth mainly comes from sectors like e-commerce. Digital technology adoption is also having a profound impact across sectors including manufacturing, energy, housing, etc. (Source : McKinsey).
Smartphone penetration has significantly contributed to the growth of digital marketing in Indonesia. The number of smartphone users in the country is expected to touch 269 million by 2028. Indonesia is likely to be the next frontier for digital brands looking to connect to a new, mobile-centric consumer base, and it is the one to watch for other developing economies. (Source : Think with Google)
The country, with a high adoption rate of digital technology and having a young population, is fast evolving into a conducive market for brands reaching out to potential customers via digital marketing platforms. But pushing Indonesia’s digital progress will require brands to step up to the challenges and transform themselves using suitable digital marketing tools.
To win in this digital age, most brands prefer using the following top 5 digital marketing platforms in Indonesia :
YouTube
With 139 million users, Indonesia found fourth place in the top 10 YouTube user countries in 2023 (Source: Global Media Insights & Google). For sharing videos or advertisements, Indonesian digital advertisers consider YouTube quite rewarding. As YouTube videos continue to interest and engage Indonesian consumers, experts predict a significant increase in YouTube views in 2023 and beyond.
Google’s data shows that YouTube's reach is 50.3 percent of the total Indonesian population in early 2023. 46.9 percent of YouTube viewers in Indonesia are women, while 53.1 percent are men. Across Indonesia, consumers spend more time watching videos on YouTube, seeking entertainment or gathering information. As of February 2023, Ricis Official is the most subscribed YouTube channel in Indonesia, with a total of 31 million subscribers (Source Statista).
Leading influencer accounts on YouTube comprise nearly 35 percent of Indonesian internet users. Indonesian brands like Tokopedia have the largest audience base on YouTube. The brand extensively uses YouTube to post content like brand stories. However, several Indonesian brands have faced setbacks while marketing on YouTube. The platform contains inappropriate content that is uploaded by spammers. YouTube ads, especially the in-stream ads, are intrusive in nature and create a negative impact on customers.
moLotus
iAds-MGram powered by moLotus is a new mobile video customer interaction platform and service aimed at Indonesian brands, telecom operators and consumers. Indonesia's digital marketing landscape got completely transformed with the strategic partnership between moLotus and Indosat Ooredoo Hutchinson, starting operations in Indonesia.
The iAds-MGram powered by moLotus offers unique digital marketing opportunities for brands in Indonesia. Brands like Suzuki, HSBC, Amazon, UOB Bank, DBS Bank, PT Bank Mandiri, etc. have been largely benefited from using iAds-MGram powered by moLotus adding to leads, acquisitions, conversions, loyalty, retention and more.
iAds-Mgram powered by moLotus reaches millions of Indonesian customers on their mobile phones, regardless of make or model - be it smartphones, feature phones or i-phones. Messages remain in the customer's inbox until the customer deletes them.
Brands and advertisers are earning high margin revenues by using the special features of iAds-MGram such as hyper-personalization, interactivity, scalability, automation, integration, etc. Most Indonesian businesses use iAds-Mgram to drive customers through customized messages using targeting options based on language, demographics, interests, income, age, and more.
They can personalize brand messages using customer names and other relevant customer data creating interactive campaigns with easy customer response options like SMS, USSD, Click URL, Callback, etc. Research shows that customers are delighted by hyper-personalized iAds-MGrams with special offers and product info coming straight from their favorite brands. iAds-MGram powered by moLotus involves no spam, no mobile apps and no data plans providing a superior experience to customers with easy and low-cost interactions.
Considering Indonesia's ad spend in digital advertising projected to reach USD 2,822 million this year and 69.9 percent of total ad spend to be generated via mobile by 2027 (Source : Statista), iAds-MGram powered by moLotus has huge potential to generate revenue across all vertical industries in Indonesia, including banking, e-commerce, insurance, electronics, retail, automotive, government sector and others. For example, it has already created new product revenue opportunities for Indonesian banking businesses through the promotion of credit card usage, deposit campaigns, loan approvals and business transactions.
According to January 2023 data, Android users in Indonesia spend 29 hours and six minutes per month on WhatsApp on average. In 2022, the number of WhatsApp users in Indonesia grew to approx.120.35 million and is predicted to reach 131.21 million users by the year 2028 (Source : Statista).
After the launch of WhatsApp instant messaging and WhatsApp Business app in Indonesia, more local businesses are using it to interact with customers. With its integration into Instagram and Facebook, brands can directly interact with customers via WhatsApp, enabling digital marketers to generate leads.
For now, however, the WhatsApp Business mobile app is only available on Android in Indonesia, helping local businesses acquire new customers, provide customer support and develop relationships. The Indonesian model is based on work and getting paid. Brands from various industry sectors use WhatsApp Business to engage customers and answer their questions effectively, thereby driving traffic to their websites.
Brands use the WhatsApp Business API to engage Indonesian customers at different stages of the customer's shopping journey. They create brand awareness; announcing new products and promotional offers, giving advice to customers; sending notifications, order confirmations, shipping updates, etc. Brands perceive WhatsApp as more than just a quick messaging service; they can effectively use it as a digital marketing tool for lead generation, customer acquisition and retention. However, the main challenge of the WhatsApp business app is the limited access for Android users.
The figures published by Meta show that Instagram has 89.15 million users in Indonesia at the beginning of 2023. Meta’s recently released figures show that Instagram's advertising reach in Indonesia was 32.3 percent of the total population at the beginning of 2023. Instagram restricts the use of its platform to people aged 13 and over, so it is worth knowing that 41.2 percent of the "mature" audience in Indonesia will use Instagram this year.
It is also worth noting that the reach of Instagram advertising in the beginning 2023 is 41.9 percent of the internet user base (regardless of age). At the beginning of 2023, 51.6 percent of the Instagram audience in Indonesia are women, while 48.4 percent are men.
Instagram reels and stories have come a long way in the Indonesian market. A recent study shows that in the country, sixty-two percent of Instagram users use Stories to browse content, while thirty-eight percent use Instagram feeds regularly. Indonesians prefer real and authentic Instagram stories.
Brands in Indonesia have successfully used the Instagram advertising platform with Instagram Direct clicks on lists and articles, displaying various product information and promotional offers. However, many of them also found some drawbacks in advertising on Instagram, especially when compared to advertising on other digital media tools. Advertising on Instagram has proved to be less effective than on Facebook where Instagram users are limited. Since ads only reach Instagram users, the return on ad spend is low and the reach is quite low.
Data published by Meta’s advertising resources points out that Facebook had 119.9 million users in Indonesia in early 2023 making it one of the most popular digital marketing platforms in the country.
Brands from multiple verticals like FMCG, ecommerce, etc. represent the majority of Facebook ad investors. According to Social bakers, a good number of e-commerce businesses in Indonesia use Facebook to engage their social media followers showcasing their new product launches, promotions and other announcements.
Indonesians use Facebook as a social media platform every day. Facebook also acts as a marketplace for brands and customers. Forty percent of Indonesian consumers are using Facebook to trace product information and get product recommendations. 31 percent of Facebook users make purchase decisions by referring to the content published on the platform. Customers use it to share their buying experience and feedback through photos and videos. Some experts in Indonesia think that Facebook advertising is a digital marketing tool that can boost the dwindling brand business in Indonesia.
Some experts are of the opinion that creating a Facebook business page to demonstrate the breadth of online presence, may not be as effective for brands as reaching customers directly to their mobile inbox. In addition, the reach of Facebook ads is limited to active Facebook users. Figures published by Meta indicate that Facebook’s potential ad reach in Indonesia declined by 10 million (minus 7.7 percent) between 2022 and 2023. Also, the number of users that digital marketers could reach via Facebook ads in Indonesia reduced by 7.2 million (minus 5.7 percent) between October 2022 and January 2023 (Source : Dataportal).
Conclusion
Indonesian consumers have been adopting a digital lifestyle in recent times. Therefore, for Indonesian brands looking to strengthen their digital marketing strategy in Indonesia, the above tools are essential. A closer look at the digital marketing platforms above highlights the fact that most platforms have their pros and cons. However, their benefits are hard to ignore. It is said that the above marketing platforms, when applied to digital-mix marketing, increase revenue and profit for Indonesian brands.
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