TV & Video Advertising - Indonesia

Ad spending in the TV & Video Advertising market in Indonesia is forecasted to reach US$2.79bn by 2024.
The largest market within this market is Traditional TV Advertising, with a market size of US$2.03bn in 2024.
When compared globally, the United States is expected to lead in ad spending, reaching US$144.60bn in 2024.
The average ad spending per user in the Traditional TV Advertising market is projected to be US$12.30 in 2024.
By 2030, the number of TV Viewers in Indonesia is anticipated to reach 0.0users.
Indonesia's TV & Video Advertising market is increasingly leveraging influencer partnerships to reach a more engaged audience.

Definition:
TV & Video Advertising includes advertising in the form of moving visual images instead of traditional broadcast television and all ad formats within digital video channels. Traditional TV Advertising includes non-digital formats and excludes all forms of digital TV advertising. Traditional TV Advertising also covers all ad spending on pay-TV operators and networks, free-to-air networks, and free-to-air spin-off digital channels from terrestrial network operators. In comparison, Digital Video Advertising includes all ad formats within webpage-based videos, app-based video players, social media, or streaming apps that appear on computer screens, smartphones, tablets, and other internet-connected devices.

Structure:

Traditional TV Advertising includes all ad spending on moving image formats broadcasted via traditional transmission channels such as terrestrial and digital terrestrial (DTTV, DTT, DTTB) TV, cable TV, satellite TV, and linear TV delivered via Internet Protocol television (IPTV).
Digital Video Advertising formats are displayed as instream and outstream video ads. Instream video ads include advertising that appears before, during, or after the streamed video (pre-roll, mid-roll, and post-roll video ads) and video overlays (text- or image-based overlays that appear while watching a video). Outstream video ads include video advertising that appears in non-video environments, e.g., in-feed on social media or text-based content (so-called native advertising).

Additional information:
The TV & Video Advertising market comprises advertising spending, users, average revenue per user, and user demographic. The market only displays B2B spending and users for the market. Figures are based on advertising spending and exclude agency commissions, rebates, production costs, and taxes. Additional definitions of Traditional TV Advertising and Digital Video Advertising can be found on the respective pages. For more information on the data displayed, use the info button right next to the boxes.

Traditional linear TV advertising broadcasted over traditional transmission channels (e.g., DTT, cable, satellite)
Digital video advertising covering all ad formats within webpage based videos, app based video players, social media networks or social media apps

Video ads on pages that are not in a video player

The TV & Video Advertising market in Indonesia is experiencing significant growth and development. Customer preferences are shifting towards digital platforms, leading to an increase in digital advertising spending. Additionally, the rise of mobile internet usage and the popularity of online video platforms are contributing to the growth of the market.

Customer preferences: Indonesian consumers are increasingly turning to digital platforms for entertainment and information. With the rapid growth of internet penetration and smartphone adoption, more people have access to online video content. This has led to a shift in customer preferences towards digital advertising, as it allows for more targeted and interactive campaigns. Advertisers are recognizing the importance of reaching consumers through their preferred channels, and are investing in TV and video advertising to capture their attention.

Trends in the market: One of the key trends in the TV & Video Advertising market in Indonesia is the growth of programmatic advertising. Programmatic advertising allows for automated buying and selling of ad inventory, making it more efficient and cost-effective for advertisers. This trend is driven by the increasing availability of data and advanced targeting capabilities, enabling advertisers to reach their desired audience more effectively. As a result, programmatic advertising is gaining popularity in Indonesia, with more advertisers adopting this technology. Another trend in the market is the rise of influencer marketing. Influencers, who are individuals with a large following on social media platforms, have become an important channel for advertising in Indonesia. They are seen as trusted sources of information and can effectively promote products and services to their followers. Advertisers are partnering with influencers to create sponsored content that resonates with their target audience. This trend is particularly prevalent in the beauty, fashion, and lifestyle industries, where influencers have a strong presence.

Local special circumstances: Indonesia has a unique media landscape, with a large number of local television stations and regional languages. This presents both opportunities and challenges for advertisers. On one hand, it allows for targeted advertising campaigns that cater to specific regions and demographics. On the other hand, it requires advertisers to have a deep understanding of the local culture and preferences in order to create effective campaigns. Advertisers need to adapt their messaging and creative content to resonate with the local audience.

Underlying macroeconomic factors: The growing TV & Video Advertising market in Indonesia can also be attributed to the country's economic growth and increasing consumer spending power. As the economy expands, more companies are investing in advertising to promote their products and services. Additionally, the rising middle class in Indonesia has led to an increase in consumer spending, driving demand for advertising. Advertisers are capitalizing on this opportunity by increasing their advertising budgets and expanding their reach to capture the attention of the growing consumer base. In conclusion, the TV & Video Advertising market in Indonesia is experiencing significant growth and development. Customer preferences are shifting towards digital platforms, driving the increase in digital advertising spending. The rise of mobile internet usage and the popularity of online video platforms are also contributing to the growth of the market. Programmatic advertising and influencer marketing are emerging trends in the market, while the unique media landscape and underlying macroeconomic factors are shaping the advertising industry in Indonesia.

Data coverage:

Data encompasses enterprises (B2B). Figures are based on TV and video advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers traditional TV advertising (non-digital formats such as terrestrial TV, cable TV, satellite TV, and linear TV) and digital video advertising (video ad formats: web-based, app-based, on social media, and connected devices).

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, web traffic, 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, consumer spending, and digital 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.

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