Market Insights Advertising & Media Advertising TV & Video Advertising

Digital Video Advertising - Indonesia

Indonesia

Ad spending in the Digital Video Advertising market in Indonesia is forecasted to reach US$0.75bn in 2024.
The projected annual growth rate (CAGR 2024-2029) for ad spending is 4.84%, leading to a market volume of US$0.95bn by 2029.
With a projected market volume of US$84,610.00m in 2024, the majority of revenue will be generated the United States.
In Indonesia, 76.62% of total ad spending is anticipated to come from mobile in 2029.
The average ad spending per internet user in the Digital Video Advertising market is estimated to be US$2.74 in 2024.
Connected TV ad spending is expected to reach US$61.40m in 2024, with an annual growth rate (CAGR 2024-2029) of 4.64%, resulting in a market volume of US$77.04m by 2029.
Ad spending on short-form videos in the Digital Video Advertising market is projected to amount to US$331.20m in 2024, with an expected annual growth rate (CAGR 2024-2029) of 9.81%, leading to a market volume of US$528.80m by 2029.
Indonesia's Digital Video Advertising market is seeing a surge in programmatic ad buying, driving targeted and efficient ad placements.

Key regions: United Kingdom, Australia, Japan, Germany, India

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Analyst Opinion

The Digital Video Advertising market in Indonesia is experiencing significant growth and development, driven by several key factors.

Customer preferences: Indonesian consumers are increasingly turning to digital platforms for entertainment and information, leading to a rise in demand for digital video advertising. With the growing popularity of smartphones and affordable internet access, people in Indonesia are spending more time watching videos online. This shift in consumer behavior has created a lucrative market for digital video advertising, as advertisers can reach a large and engaged audience through online platforms.

Trends in the market: One of the key trends in the digital video advertising market in Indonesia is the rise of mobile video advertising. As more and more Indonesians access the internet through their smartphones, advertisers are adapting their strategies to target mobile users. Mobile video advertising offers a highly effective way to engage with consumers on the go, and advertisers are investing in creating mobile-friendly video content that captures the attention of mobile users. Another trend in the market is the increasing popularity of programmatic advertising. Programmatic advertising allows advertisers to automate the buying and selling of ad space, making the process more efficient and cost-effective. In Indonesia, programmatic advertising is gaining traction as advertisers seek to optimize their ad spend and target specific audience segments. This trend is expected to continue as more advertisers recognize the benefits of programmatic advertising.

Local special circumstances: Indonesia is a diverse country with a large population spread across thousands of islands. This presents unique challenges and opportunities for digital video advertising. Advertisers need to consider the cultural and linguistic diversity of the Indonesian market when creating video content. Localizing advertisements to resonate with different regions and ethnic groups can help advertisers effectively reach their target audience.

Underlying macroeconomic factors: The Indonesian economy has been growing steadily in recent years, with a rising middle class and increasing disposable income. This economic growth has contributed to the expansion of the digital video advertising market, as more consumers have the means to access and engage with online content. Additionally, the government has been investing in improving internet infrastructure and connectivity across the country, further fueling the growth of the digital video advertising market. In conclusion, the Digital Video Advertising market in Indonesia is experiencing rapid growth due to changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. Advertisers are capitalizing on the increasing popularity of digital platforms and mobile devices to reach and engage with the Indonesian audience. With continued economic growth and advancements in technology, the digital video advertising market in Indonesia is poised for further expansion in the coming years.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on digital video advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers video ad formats (web-based, app-based, social media, and connected devices).

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use market data from industry reports and survey results from our primary research (e.g., Consumer Insights) to analyze the markets. Then we benchmark key countries or regions (United States, China, Europe, Asia, and Africa) results with country-specific advertising organizations or associations. 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, internet users, and digital consumer spending.

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.