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Traditional Radio Advertising - Indonesia

Indonesia
  • Ad spending in the Traditional Radio Advertising market in Indonesia is forecasted to reach US$84.69m in 2025.
  • The ad spending is anticipated to demonstrate an annual growth rate (CAGR 2025-2030) of 1.95%, leading to an estimated market volume of US$93.27m by 2030.
  • Within the Traditional Radio Advertising market in Indonesia, the number of listeners is projected to reach 0.0users by 2030.
  • The average ad spending per radio listener in the Traditional Radio Advertising market in Indonesia is expected to be US$1.15 in 2025.
  • Traditional Radio Advertising in Indonesia is experiencing a resurgence, with local businesses leveraging its wide reach and cost-effectiveness to connect with their target audience effectively.

Definition:
Traditional Radio Advertising refers to audio advertising on the program service of a terrestrial radio station or network (terrestrial radio broadcasting and satellite radio services in the U.S. and Canada). It also includes direct (local) advertising, in which advertisers reach out to individual stations, as well as indirect (national) advertising, in which advertisers employ media buying agencies to manage their advertising purchases from individual stations.

Additional information:
Traditional Radio Advertising comprises advertising spending, users, and average revenue per user. The market only displays B2B spending. Figures are based on advertising spending and exclude agency commissions, rebates, production costs, and taxes. For more information on the data displayed, use the info button right next to the boxes.
In-Scope
  • Traditional Radio Advertising broadcasting on the program service of a terrestrial radio station or network
Out-Of-Scope
  • Digital Audio Advertising through pre- and in-Stream Audio Ads that appear in music and podcast streaming services
Audio Advertising: market data & analysis - Cover

Market Insights report

Audio Advertising: market data & analysis
Study Details

    Ad Spending

    Created with Highcharts 11.4.8ValuesTotal2017201820192020202120222023202420252026202720282029203050100150200250300350400

    Notes: Data was converted from local currencies using average exchange rates of the respective year.

    Most recent update: Oct 2024

    Source: Statista Market Insights

    Created with Highcharts 11.4.8ValuesAverage201720182019202020212022202320242025202620272028202955.15.25.35.45.55.65.75.85.966.1

    Most recent update: Oct 2024

    Source: Statista Market Insights

    Demographics

    Most recent update: Mar 2024

    Sources: Statista Market Insights, Statista Consumer Insights Global

    Analyst Opinion

    The Traditional Radio Advertising market in Indonesia has been experiencing significant growth in recent years.

    Customer preferences:
    Indonesian consumers have shown a strong preference for traditional radio advertising due to its wide reach and affordability. Radio remains a popular medium for entertainment and information in the country, with a large portion of the population tuning in regularly. This makes it an attractive platform for advertisers to reach a diverse audience across different regions of Indonesia. Additionally, radio advertising is often seen as a more cost-effective option compared to other forms of media, making it accessible to businesses of all sizes.

    Trends in the market:
    One of the key trends in the Traditional Radio Advertising market in Indonesia is the increasing adoption of digital technology. Many radio stations have embraced digital platforms, allowing advertisers to reach their target audience through online streaming and mobile apps. This shift towards digital has expanded the reach of radio advertising beyond the traditional FM/AM frequencies, enabling advertisers to connect with consumers anytime and anywhere. Another trend in the market is the rise of programmatic advertising. Programmatic advertising uses algorithms to automate the buying and selling of ad space, making it more efficient and targeted. This technology has gained traction in Indonesia, with advertisers leveraging programmatic solutions to optimize their radio ad campaigns and improve their return on investment.

    Local special circumstances:
    Indonesia's diverse cultural landscape presents unique opportunities and challenges for radio advertisers. The country is home to numerous ethnic groups and languages, each with its own radio stations catering to specific communities. This fragmentation of the radio market allows advertisers to target niche audiences effectively. However, it also requires a tailored approach to advertising campaigns, taking into account the cultural nuances and preferences of different regions.

    Underlying macroeconomic factors:
    The growing middle class and urbanization in Indonesia have contributed to the development of the Traditional Radio Advertising market. As more people move to urban areas and experience an increase in disposable income, the demand for radio advertising has grown. Advertisers recognize the potential of reaching this expanding consumer base through radio, leading to increased investment in the medium. Furthermore, the Indonesian government has implemented policies to support the growth of the advertising industry, including tax incentives and regulations to promote fair competition. These measures have created a favorable business environment for advertisers and encouraged further investment in radio advertising. In conclusion, the Traditional Radio Advertising market in Indonesia is experiencing growth due to customer preferences for wide reach and affordability, the adoption of digital technology, the rise of programmatic advertising, the diverse cultural landscape, and underlying macroeconomic factors such as the growing middle class and government support. These factors have contributed to the development and expansion of the radio advertising industry in Indonesia, making it a promising market for advertisers.

    Reach

    Most recent update: Oct 2024

    Source: Statista Market Insights

    Global Comparison

    Most recent update: Oct 2024

    Source: Statista Market Insights

    Methodology

    Data coverage:

    Data encompasses enterprises (B2B). Figures are based on traditional radio advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers advertising spending in broadcasting programs on terrestrial radio stations or networks.

    Modeling approach:

    Market size is determined by a combined top-down and bottom-up approach. We use industry association reports, third-party reports, and survey results from our primary research (e.g., Consumer Insights Global Survey) 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, media consumption, internet users, and 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.

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    Audio Advertising: market data & analysis - BackgroundAudio Advertising: market data & analysis - Cover

    Key Market Indicators

    Notes: Based on data from IMF, World Bank, UN and Eurostat

    Most recent update: Jan 2025

    Source: Statista Market Insights

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