Instant Messaging Advertising - Indonesia

Ad spending in the Instant Messaging Advertising market in Indonesia is forecasted to reach US$1.47m in 2024.
The ad spending is anticipated to demonstrate an annual growth rate (CAGR 2024-2030) of 1.37%, leading to an estimated market volume of US$1.59m by 2030.
When compared globally, the United States is expected to generate the highest ad spending (US$74.28m in 2024).
The average ad spending per internet user in the Instant Messaging Advertising market is projected to be US$0.01 in 2024.
Amid Indonesia's digital advertising boom, Instant Messaging Advertising emerges as a key strategy for brands to engage tech-savvy consumers effectively.

Definition:

Instant Messaging Advertising refers to advertising that delivers promotional messages to potential customers through online chat platforms or applications. This type of ad spending covers various ad formats that appear within or alongside instant messaging conversations, such as instant messaging on Facebook messenger or applications such as WhatsApp, Line, and WeChat.

Additional information:

Instant Messaging Advertising comprises advertising spending 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.

The advertising budget used for instant messaging advertisements
Software fees for creating and distributing instant messaging advertisements

Service agencies
Consultant fees
Production costs
Design services

The Instant Messaging Advertising market in Indonesia has been experiencing significant growth in recent years, driven by changing customer preferences and the increasing popularity of instant messaging platforms.

Customer preferences: Indonesian consumers have shown a strong preference for instant messaging apps as their primary mode of communication. This has created a lucrative opportunity for advertisers to reach a large and engaged audience through these platforms. The convenience and ease of use of instant messaging apps have made them a preferred choice for communication among Indonesians, leading to increased user engagement and longer screen time. As a result, advertisers are increasingly focusing their efforts on reaching consumers through these channels.

Trends in the market: One of the key trends in the Instant Messaging Advertising market in Indonesia is the rise of native advertising. Native ads seamlessly blend into the user experience of instant messaging apps, making them less intrusive and more engaging for users. Advertisers are leveraging this trend by creating content that is relevant and valuable to users, thereby increasing the chances of user engagement and conversion. Another trend in the market is the growing use of personalized and targeted advertising. Instant messaging apps collect a wealth of user data, including demographics, interests, and online behavior. Advertisers are leveraging this data to deliver highly targeted and personalized ads to users, increasing the effectiveness of their campaigns and improving ROI.

Local special circumstances: Indonesia has a large and diverse population, with different cultural and linguistic backgrounds. This diversity presents both opportunities and challenges for advertisers in the Instant Messaging Advertising market. Advertisers need to tailor their campaigns to cater to the specific needs and preferences of different segments of the Indonesian population. This includes creating content in multiple languages and incorporating local cultural elements to resonate with the target audience.

Underlying macroeconomic factors: The growing Instant Messaging Advertising market in Indonesia can also be attributed to favorable macroeconomic factors. Indonesia has experienced steady economic growth in recent years, leading to an increase in disposable income and consumer spending. This has created a conducive environment for advertisers to invest in advertising and reach a larger audience. In conclusion, the Instant Messaging Advertising market in Indonesia is witnessing rapid growth, driven by changing customer preferences, the rise of native advertising, the use of personalized and targeted advertising, local special circumstances, and favorable macroeconomic factors. Advertisers are capitalizing on the popularity of instant messaging apps to reach a large and engaged audience, and the market is expected to continue growing in the coming years.

Data coverage:

The data encompasses B2B enterprises. Figures are based on Instant Messaging Advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers the advertising budget used for distributing instant messaging advertisements.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on specific predefined factors for each market. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and industry associations, third-party studies and reports, survey results from our primary research (e.g., the Statista Consumer Insights Global survey), as well as performance factors (e.g., user penetration, usage). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, number of internet users, and internet coverage. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, 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. The main drivers are GDP per capita, consumer spending per capita, and internet users.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). Data from the Statista Consumer Insights Global survey is reweighted for representativeness.

This report presents a comprehensive analysis and additional information on the Advertising & Media market, in a PDF format.

All advertising markets across the globe win, yet some win more than others. Ad spending worldwide reached almost 733 billion U.S. dollars in 2023, up less than three percent from the previous year. For comparison, in 2022, Switzerland ranked 20th among the leading economies by gross domestic product (GDP) with a result exceeding 800 billion dollars. Whereas global ad revenues concentrate in areas with either large populations or high purchase power – preferably both – their evolution depends on a larger set of indicators. It was forecast that, in 2024, South Asia will be the world's fastest-growing ad market, and the only out of nine with a double-digit increase rate: 12.1 percent. The second-placed region, comprising the United States and Canada, was projected to see its ad expenditure rise 7.6 percent.