Market Insights Advertising & Media Advertising Out-of-Home Advertising

Traditional Out-of-Home Advertising - Indonesia

Indonesia

In Indonesia, the Traditional Out-of-Home Advertising market is forecasted to see ad spending reach US$196.30m in 2024.
The sector is anticipated to experience an annual growth rate (CAGR 2024-2029) of 0.62%, leading to a projected market volume of US$202.50m by 2029.
The average ad spending per capita in the Traditional Out-of-Home Advertising market is expected to be US$0.70 in 2024.
Indonesia's Traditional Out-of-Home Advertising market is embracing digital integration to enhance targeting and engagement with consumers.

Key regions: France, United Kingdom, Asia, China, Germany

Market

Region

Region comparison

Currency

Analyst Opinion

Traditional Out-of-Home Advertising in Indonesia has seen significant development in recent years, driven by shifting customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors.

Customer preferences: In Indonesia, there has been a growing preference for traditional out-of-home advertising methods, such as billboards, posters, and transit advertising. This can be attributed to the fact that these methods provide a wide reach and visibility to a diverse audience. Additionally, many consumers in Indonesia still rely on public transportation, making transit advertising an effective way to target this audience. Furthermore, traditional out-of-home advertising allows for creative and eye-catching displays that capture the attention of consumers in a cluttered media landscape.

Trends in the market: One of the key trends in the traditional out-of-home advertising market in Indonesia is the increasing use of digital technology. Digital billboards and screens are becoming more prevalent, offering advertisers the ability to display dynamic and interactive content. This trend is driven by advancements in technology and the desire to engage consumers in a more interactive and immersive way. Another trend in the market is the integration of traditional out-of-home advertising with mobile and online platforms. Advertisers are leveraging the power of mobile devices and online platforms to enhance the effectiveness of their out-of-home campaigns. For example, QR codes and augmented reality are being used to provide additional information or interactive experiences to consumers who engage with out-of-home advertisements.

Local special circumstances: Indonesia is a country with a large and diverse population spread across a vast geographic area. This presents unique challenges and opportunities for traditional out-of-home advertising. Advertisers need to consider the cultural and linguistic diversity of the country when creating their campaigns. Additionally, the infrastructure and transportation systems in Indonesia vary across different regions, which can impact the effectiveness and reach of out-of-home advertising.

Underlying macroeconomic factors: The development of the traditional out-of-home advertising market in Indonesia is also influenced by underlying macroeconomic factors. Indonesia has experienced steady economic growth in recent years, leading to an expanding middle class and increased consumer spending. This has created a larger market for advertisers to target and has driven demand for out-of-home advertising. Furthermore, Indonesia has a young and tech-savvy population, which is increasingly connected to the internet and social media. This presents opportunities for advertisers to leverage digital and online platforms to complement their traditional out-of-home campaigns. In conclusion, the Traditional Out-of-Home Advertising market in Indonesia has been developing due to shifting customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors. Advertisers are adapting to these changes by incorporating digital technology, integrating with mobile and online platforms, and considering the unique characteristics of the Indonesian market.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on traditional out-of-home advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers offline out-of-home advertisements such as billboards, street furniture, transit and transport displays, and place-based media.

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use annual financial reports of the market-leading companies and industry associations, third-party reports, and survey results from our primary research (e.g., Consumer Insights) to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as GDP, population, urban population, and internet infrastructure.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market. For instance, the S-curve function is well suited to forecast digital products due to the non-linear growth of technology adoption, whereas exponential trend smoothing (ETS) is more suited for projecting steady growth in traditional advertising markets.

Additional notes:

Data is modeled using current exchange rates. The impacts of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice per year in case market dynamics change.