Advertising spending in Indonesia 2015-2020
Strong growth in ad spend
Indonesia had been experiencing steady growth in its advertising economy. Total advertising expenditure grew by 2.2 percent in 2018, and it is projected to increase in 2020 to 4.7 percent. In 2018, e-commerce and online services posted the strongest growth in ad spend, while the telecommunications sector saw negative growth. The presidential and general election of 2019 was expected to generate more ad spend, particularly in television, as political parties are permitted to buy TV commercials in Indonesia. This would compensate for a possible decrease in ad spend by brands, which might be discouraged by the political uncertainty during the elections to spend on advertising.
Digital ad spend to lead the way
Indonesia was projected to have the biggest growth in digital ad spend worldwide. In 2018, digital advertising spending grew by 18 percent, and made up 21 percent of the total ad spend there. In line with global trends and the strong growth in digital ad spend, programmatic ad spend was also predicted to increase. Indonesia is already Asia-Pacific’s fastest growing market for programmatic advertising. With an increasingly digitally-connected and internet-savvy population, digital advertising is the way forward for brands to reach Indonesian consumers.