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Search Advertising - Indonesia

Indonesia
  • Ad spending in the Search Advertising market in Indonesia is forecasted to reach US$1.22bn in 2025.
  • The ad spending is anticipated to demonstrate an annual growth rate (CAGR 2025-2030) of 4.87%, leading to a projected market volume of US$1.55bn by 2030.
  • When compared globally, the United States will account for the highest ad spending (US$154.78bn in 2025).
  • Within the Search Advertising market, 73% of the total ad spending is estimated to be generated through mobile in 2030.
  • The average ad spending per internet user in the Search Advertising market in Indonesia is projected to be US$5.18 in 2025.
  • Indonesia's Search Advertising market is experiencing rapid growth due to the country's increasing digital adoption and expanding e-commerce sector.

Definition:
Search Advertising, also called search engine advertising (SEA) or paid search advertising, refers to advertisements displayed on search results pages above or next to the organic search results. Brands can create search advertising campaigns. Paying a fee or bidding will give a better ranking each time targeted audiences search and click on the campaign’s ads. These advertisements are usually text based but can be displayed as images or videos where applicable.

Additional information:
Search Advertising comprises advertising spending, users, average revenue per user, and key players. The market only displays B2B spending. Figures are based on advertising spending and exclude agency commissions, rebates, production costs, and taxes. Key players in Search Advertising include Google, Bing, Baidu, Amazon, and Alibaba. For more information on the data displayed, use the info button right next to the boxes.
In-Scope
  • Search Engine Advertising (SEA)
  • Keyword advertising
  • Sponsored links
Out-Of-Scope
  • Search engine optimization (SEO)
Search Advertising: market data & analysis - Cover

Market Insights report

Search Advertising: market data & analysis
Study Details

    Ad Spending

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

    Most recent update:

    Source: Statista Market Insights

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

    Most recent update:

    Source: Statista Market Insights

    Most recent update:

    Source: Statista Market Insights

    Analyst Opinion

    The Search Advertising market in Indonesia has been experiencing significant growth in recent years, driven by changing customer preferences and local special circumstances.

    Customer preferences:
    Indonesian consumers have become increasingly reliant on the internet for information and entertainment, leading to a rise in online searches. This has created a strong demand for search advertising, as businesses seek to reach these consumers at the moment they are actively searching for products or services. Additionally, the growing popularity of mobile devices has further fueled the demand for search advertising, as users are increasingly accessing the internet through their smartphones and tablets.

    Trends in the market:
    One of the key trends in the Search Advertising market in Indonesia is the increasing adoption of programmatic advertising. Programmatic advertising allows advertisers to automate the buying and selling of ad inventory, making it more efficient and cost-effective. This trend has been driven by advancements in technology and the availability of data, which enable advertisers to target their ads more effectively and measure their impact more accurately. As a result, programmatic advertising has become an attractive option for businesses in Indonesia, leading to its rapid growth in the Search Advertising market. Another trend in the market is the rise of local search advertising. Indonesian consumers are increasingly using search engines to find local businesses and services, such as restaurants, hotels, and shops. This has created a significant opportunity for local businesses to advertise their products and services to a highly targeted audience. As a result, local search advertising has become a popular strategy for businesses in Indonesia, driving the growth of the market.

    Local special circumstances:
    Indonesia has a large and rapidly growing population, with a high level of internet penetration. This provides a large and diverse audience for advertisers to target. Additionally, the Indonesian government has been actively promoting the development of the digital economy, including the advertising industry. This has created a favorable environment for the growth of the Search Advertising market in Indonesia, attracting both local and international advertisers.

    Underlying macroeconomic factors:
    The growth of the Search Advertising market in Indonesia is also influenced by underlying macroeconomic factors. Indonesia has been experiencing steady economic growth, which has led to an expansion of the middle class and increased consumer spending. This has created a larger market for advertisers to target, driving the demand for search advertising. Additionally, Indonesia has a young and tech-savvy population, which is driving the adoption of digital technologies and the demand for online advertising. In conclusion, the Search Advertising market in Indonesia is developing rapidly due to changing customer preferences, such as increased reliance on the internet and the growing popularity of mobile devices. The market is also influenced by local special circumstances, including the rise of programmatic advertising and the demand for local search advertising. Furthermore, underlying macroeconomic factors, such as economic growth and a young population, are driving the growth of the market. As a result, the Search Advertising market in Indonesia is expected to continue its upward trajectory in the coming years.

    Global Comparison

    Most recent update:

    Source: Statista Market Insights

    Methodology

    Data coverage:

    Data encompasses enterprises (B2B). Figures are based on search advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers search advertising that is displayed on search result pages or next to organic search results.

    Modeling approach:

    A combined top-down and bottom-up approach determines the market size. Starting with the top-down approach, we calculate global search advertising by aggregating advertising revenues from key players (Alphabet (Google), Microsoft (Bing), Baidu, Amazon, Alibaba, etc.). Followed by the bottom-up approach, we justify global, country, and region results using web traffic and the number of app downloads. Lastly, we distribute the results to each country individually with relevant indicators such as GDP, internet users, and digital consumer spending by country.

    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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    Search Advertising: market data & analysis - BackgroundSearch Advertising: market data & analysis - Cover

    Key Market Indicators

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

    Most recent update:

    Source: Statista Market Insights

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