Sponsorship & Advertising - Indonesia

  • Indonesia
  • In Indonesia, revenue in the Sponsorship & Advertising market market is projected to reach US$2.3m in 2024.
  • Revenue in this market is expected to show an annual growth rate (CAGR 2024-2029) of 5.60%, resulting in a projected market volume of US$3.0m by 2029.
  • Although the projected market volume in Indonesia is significantly lower, China is expected to generate most revenue with a projected market volume of US$288.9m in 2024.
  • The average revenue per user (ARPU) in Indonesia is expected to amount to US$0.0.
  • Indonesia's burgeoning eSports scene is attracting significant sponsorship and advertising investments, reflecting the country's youthful demographics and increasing digital engagement.

Key regions: South Korea, United Kingdom, India, Europe, United States

 
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Analyst Opinion

The eSports market in Indonesia has seen a minimal growth rate, impacted by factors such as limited sponsorships and advertising opportunities. Despite the rising popularity of eSports, the lack of infrastructure and investment in the industry is hindering its growth potential.

Customer preferences:
With the growing popularity of eSports in Indonesia, companies are realizing the potential of reaching a young and tech-savvy audience through sponsorship and advertising in this market. As such, there has been a shift towards more digital and interactive approaches, such as in-game advertising and influencer marketing. This trend is also driven by the increasing use of mobile devices among the Indonesian population, making it easier to reach and engage with potential consumers through these channels. Additionally, the rise of eSports as a form of mainstream entertainment has led to an increase in cross-promotional partnerships between brands and gaming organizations, further blurring the lines between traditional sports and eSports.

Trends in the market:
In Indonesia, the eSports market is experiencing a surge in popularity, with the number of players and viewers on the rise. This has led to a significant increase in the demand for sponsorship and advertising opportunities within the industry. With major brands and companies recognizing the potential reach and engagement of eSports, there is a growing trend of partnerships and collaborations with teams and tournaments. This trend is expected to continue as the industry gains more mainstream recognition and investments. It could also lead to more diverse and creative advertising strategies, such as influencer marketing and product placement, to target the highly engaged and tech-savvy audience of eSports. This could bring in more revenue for both the industry and advertisers, and could potentially change the landscape of traditional sports sponsorship and advertising.

Local special circumstances:
In Indonesia, the eSports market is heavily influenced by the country's widespread internet access and high social media usage. This has led to a surge in online gaming and eSports tournaments, attracting a large and engaged audience. Additionally, the country's young and tech-savvy population has made it a prime target for global eSports sponsorship and advertising, with brands utilizing local influencers and cultural references to effectively reach the target market. Moreover, the lack of strict regulations on advertising has allowed for creative and innovative approaches to promoting eSports events and products.

Underlying macroeconomic factors:
The Sponsorship & Advertising Market within the eSports Market in Indonesia is heavily influenced by macroeconomic factors such as the country's economic growth, consumer spending power, and government policies on advertising and sponsorship. With a growing economy and a large population of tech-savvy millennials, Indonesia presents a lucrative market for eSports sponsorship and advertising. Moreover, the government's efforts to promote the digital economy and create a favorable business environment have further boosted the growth of the eSports market in the country. Additionally, the increasing popularity of eSports among young consumers and the rise of online streaming platforms have also contributed to the growth of sponsorship and advertising opportunities in the market.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on the Sponsorship & Advertising market, which comprises revenues of teams and organizers via sponsorship deals. All figures are based on net revenues and exclude agency commissions, rebates, and production costs.

Modeling approach / market size:

The market size is determined through a bottom-up approach. 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., Consumer Insights), as well as performance factors (e.g., user penetration, price per product, usage) 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 various macroeconomic indicators, historical developments, current trends, and reported performance indicators of key market players. In particular, we consider average prices and annual purchase frequencies.

Forecasts:

We apply a variety of forecasting techniques, depending on the behavior of the relevant market. For instance, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption. The main drivers are GDP per capita, consumer spending per capita, and 4G coverage.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level. 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). Consumer Insights data is reweighted for representativeness.

Overview

  • Ad Spending
  • Analyst Opinion
  • Global Comparison
  • Methodology
  • Key Market Indicators
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