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

Digital Out-of-Home Advertising - Indonesia

Indonesia

Ad spending in the Digital Out-of-Home Advertising market in Indonesia is forecasted to reach US$123.80m in 2024.
The expected annual growth rate (CAGR 2024-2029) of ad spending is 11.73%, leading to a projected market volume of US$215.60m by 2029.
Indonesia is anticipated to have a projected market volume of US$4,366.00m in 2024, with the majority of ad spending concentrated in the country.
The average ad spending per capita in the Digital Out-of-Home Advertising market is projected to be US$0.44 in 2024.
Indonesia's Digital Out-of-Home Advertising sector is rapidly expanding, leveraging innovative technology to engage consumers in dynamic ways.

Key regions: India, France, United States, United Kingdom, China

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Analyst Opinion

The Digital Out-of-Home Advertising market in Indonesia is experiencing significant growth and development.

Customer preferences: In recent years, there has been a shift in customer preferences towards more engaging and interactive advertising formats. Consumers are increasingly drawn to dynamic and visually appealing advertisements that capture their attention and provide a unique experience. This has led to a rise in the demand for digital out-of-home advertising, as it allows advertisers to create immersive and interactive campaigns that can be easily customized and updated in real-time.

Trends in the market: One of the key trends in the digital out-of-home advertising market in Indonesia is the adoption of programmatic advertising. Programmatic advertising allows advertisers to automate the buying and selling of ad space, enabling them to target specific audiences and optimize their campaigns for maximum impact. This trend is driven by the increasing availability of data and analytics, which enable advertisers to better understand their target audience and deliver more personalized and relevant content. Another trend in the market is the integration of digital out-of-home advertising with mobile devices. With the widespread use of smartphones and tablets, advertisers are leveraging mobile technology to enhance the effectiveness of their campaigns. For example, they can use location-based targeting to deliver ads to consumers when they are in close proximity to a digital out-of-home display. This integration allows for a seamless and integrated advertising experience, as consumers can interact with the ad on their mobile device and then be directed to the physical display for further engagement.

Local special circumstances: Indonesia is the fourth most populous country in the world, with a large and diverse consumer base. This presents both opportunities and challenges for advertisers in the digital out-of-home advertising market. On one hand, the large population provides a vast audience for advertisers to reach. On the other hand, the diversity of the population means that advertisers need to tailor their campaigns to different cultural and linguistic preferences.

Underlying macroeconomic factors: The growth of the digital out-of-home advertising market in Indonesia is also influenced by underlying macroeconomic factors. Indonesia has experienced steady economic growth in recent years, which has led to an increase in consumer spending power. This, in turn, has created a favorable environment for advertisers to invest in digital out-of-home advertising as a means to reach and engage with consumers. In conclusion, the Digital Out-of-Home Advertising market in Indonesia is developing rapidly due to changing customer preferences, such as a preference for engaging and interactive advertising formats. The market is also influenced by trends such as the adoption of programmatic advertising and the integration of digital out-of-home advertising with mobile devices. Local special circumstances, such as the large and diverse consumer base in Indonesia, and underlying macroeconomic factors, such as steady economic growth, further contribute to the development of the market.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on digital out-of-home advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers internet-connected out-of-home advertisements such as digital billboards, digital street furniture, digital transit and transportation, and digital 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 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, 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.