Cinema Advertising - Indonesia

Indonesia

Highlights

In Indonesia, ad spending in the Cinema Advertising market market is projected to reach US$31.69m in 2024.
The ad spending in this sector is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 8.48%, leading to a projected market volume of US$47.59m by 2029.
Although the United States is anticipated to generate most revenue with a projected market volume of US$952.00m in 2024, Indonesia's Cinema Advertising market market is also growing.
By 2029, the number of viewers in the Cinema Advertising market market in Indonesia is expected to amount to 69.9m users.
Furthermore, the average ad spending per viewer in Indonesia's Cinema Advertising market market is projected to be US$0.54 in 2024.
In Indonesia, cinema advertising is experiencing a resurgence as brands increasingly leverage the unique audience engagement opportunities presented by the growing film industry.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

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

Customer preferences: Customers in Indonesia are increasingly seeking out unique and immersive experiences, and cinema advertising provides an opportunity for brands to engage with audiences in a captivating and memorable way. With the rise of digital technology, cinema advertising has evolved beyond traditional static ads to include interactive and experiential campaigns that can effectively capture the attention of moviegoers. This shift in customer preferences towards more engaging and interactive advertising experiences has contributed to the growth of the cinema advertising market in Indonesia.

Trends in the market: One of the key trends in the cinema advertising market in Indonesia is the integration of technology into advertising campaigns. Advertisers are leveraging advancements in digital technology to create more interactive and personalized experiences for moviegoers. For example, some cinema advertising campaigns now incorporate augmented reality (AR) and virtual reality (VR) elements, allowing audiences to interact with the brand in a virtual environment. This trend is driven by the increasing availability and affordability of digital technology in Indonesia, as well as the growing demand for immersive experiences among consumers. Another trend in the cinema advertising market is the rise of programmatic advertising. Programmatic advertising allows advertisers to target specific demographics and audiences based on their preferences and behaviors, enabling them to deliver more relevant and personalized ads. This trend is supported by the increasing availability of data and analytics tools, which enable advertisers to better understand their target audience and optimize their advertising campaigns. Programmatic advertising is particularly effective in the cinema advertising market, as it allows advertisers to reach a captive audience with minimal distractions.

Local special circumstances: Indonesia has a large and growing population, making it an attractive market for advertisers. The country also has a strong cinema culture, with a significant portion of the population regularly attending movie screenings. This provides advertisers with a captive audience and an opportunity to reach a wide range of consumers. Furthermore, the Indonesian government has been supportive of the cinema industry, providing incentives and subsidies to encourage investment in the sector. These local special circumstances have contributed to the growth of the cinema advertising market in Indonesia.

Underlying macroeconomic factors: The growth of the cinema advertising market in Indonesia is also influenced by underlying macroeconomic factors. The country has experienced steady economic growth in recent years, leading to an expansion of the middle class and an increase in disposable income. This has resulted in higher consumer spending on entertainment, including cinema tickets. Additionally, Indonesia has a young and tech-savvy population, which is more likely to engage with digital advertising and interactive experiences. These macroeconomic factors have created a favorable environment for the growth of the cinema advertising market in Indonesia. In conclusion, the Cinema Advertising market in Indonesia is developing due to changing customer preferences, the integration of technology into advertising campaigns, local special circumstances, and underlying macroeconomic factors. Advertisers are capitalizing on the demand for immersive experiences and leveraging advancements in digital technology to create more engaging and interactive cinema advertising campaigns. The large and growing population, strong cinema culture, government support, steady economic growth, and young population with disposable income are all contributing to the growth of the cinema advertising market in Indonesia.

Data coverage:

The data encompasses B2B enterprises. Figures are based on the Cinema Advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers advertising both on and off screen in cinemas, including ads shown before a movie and those displayed inside a cinema.

Modeling approach / market size:

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) to analyze the markets.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, reported performance indicators of key market players as well as performance factors (e.g., user penetration and usage) to analyze the markets.

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 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.