Market Insights Advertising & Media Advertising TV & Video Advertising

Traditional TV Advertising - Indonesia

Indonesia

Ad spending in the Traditional TV Advertising market in Indonesia is forecasted to reach US$2.03bn in 2024.
The ad spending is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of 3.15%, leading to an estimated market volume of US$2.37bn by 2029.
The average ad spending per TV Viewer in the Traditional TV Advertising market is projected to be US$12.30 in 2024.
The number of users in the Traditional TV Advertising market is expected to reach 173.2m users by 2029.
Amid the digital shift, Indonesia's Traditional TV Advertising market shows resilience, leveraging local content and innovative strategies to reach diverse audiences.

Key regions: Germany, Europe, Japan, United Kingdom, Australia

Definition:
Traditional TV Advertising refers to 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). Terrestrial television uses traditional antennas that transmit analog signals. Analog terrestrial TV has undergone a digital switchover (DSO) to digital terrestrial TV in most parts of the world. For digital terrestrial TV, television broadcasting stations transmit TV content through radio waves to televisions in households in a digital format. Internet Protocol television (IPTV) refers to the delivery of television content via Internet Protocol networks. IPTV is used in subscriber-based telecommunications networks via set-top boxes or other customer-premises equipment (IPTV is included in the cable revenue split here). Traditional TV Advertising covers all ad spending on pay-TV operators and networks as well as free-to-air networks and free-to-air spin-off digital channels from terrestrial network operators. Usually, the distribution of advertising time in television programs is either carried out by the broadcasters themselves or by marketing agencies.

Structure:

Cable TV signals are transmitted through coaxial or fiber-optic cables directly to each household without the need for external antennas.
Satellite TV includes television programming with the use of communication satellites that transmit to satellite dishes. A dedicated satellite receiver (external set-top boxes or built into TV sets) decodes the television program.
Digital Terrestrial Television (DTT), sometimes known as direct-to-terrestrial television, is a type of television reception in which a signal is transmitted directly to a viewer's antenna rather than through a cable or satellite system. As a rule, HDTV signals are available through digital terrestrial television, and this type of television also makes better use of the radio spectrum.

Additional information:
Traditional TV Advertising comprises advertising spending, users, average revenue per user, and user demographic. The market only displays B2B spending and users. Figures are based on Traditional TV 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.

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Analyst Opinion

The Traditional TV Advertising market in Indonesia is experiencing significant development and growth due to several key factors.

Customer preferences: Indonesian consumers still have a strong preference for traditional television as their primary source of entertainment and information. This is reflected in the high viewership and engagement rates of television programs in the country. Additionally, the wide availability and affordability of television sets make it accessible to a large portion of the population.

Trends in the market: One of the major trends in the Traditional TV Advertising market in Indonesia is the increasing number of advertisers and brands investing in television advertising. This is driven by the effectiveness of television in reaching a wide audience and creating brand awareness. Advertisers recognize the power of television to convey their messages to a large and diverse consumer base. As a result, they are allocating a significant portion of their marketing budgets to television advertising. Another trend in the market is the integration of digital technology into traditional television advertising. With the rise of smart TVs and streaming services, advertisers are exploring new ways to engage with viewers through interactive and personalized advertisements. This includes targeted advertising based on viewer demographics and preferences, as well as interactive features that allow viewers to interact with the advertisements in real-time.

Local special circumstances: Indonesia has a unique media landscape characterized by a large number of local television stations. This provides advertisers with a diverse range of options to reach their target audience. Local television stations often have a deep understanding of the local culture and preferences, allowing advertisers to create more relevant and impactful advertisements.

Underlying macroeconomic factors: The growing economy of Indonesia is also contributing to the development of the Traditional TV Advertising market. As the economy expands, more companies are entering the market and competing for consumers' attention. This has led to increased advertising spending across various media channels, including television. In addition, the government's efforts to improve infrastructure and expand access to television services in rural areas are driving the growth of the Traditional TV Advertising market. As more households gain access to television, the potential audience for advertisers increases, leading to higher demand for television advertising. Overall, the Traditional TV Advertising market in Indonesia is experiencing growth and development due to customer preferences for television as a primary source of entertainment, the increasing number of advertisers investing in television advertising, the integration of digital technology into traditional television advertising, the unique local media landscape, and the underlying macroeconomic factors such as the growing economy and government initiatives to improve infrastructure.

Methodology

Data coverage:

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

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, media consumption, number of households with television, 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.