In-game Advertising - Indonesia

Indonesia

Highlights

In Indonesia, revenue in the In-game Advertising market market is projected to reach US$209.40m in 2024.
Revenue in this market is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 9.08%, leading to a projected market volume of US$323.30m by 2029.
The average revenue per user (ARPU) in Indonesia is anticipated to amount to US$2.43.
In a global context, the highest revenue will be generated China, with an expected revenue of US$46.61bn in 2024.
In Indonesia, the rising popularity of mobile gaming is driving brands to increasingly invest in immersive in-game advertising strategies to engage younger audiences.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The In-game Advertising market in Indonesia is experiencing significant growth and development.

Customer preferences: In Indonesia, there is a growing preference for in-game advertising among gamers. This can be attributed to the increasing popularity of mobile gaming and the high level of engagement that it offers. Gamers in Indonesia are receptive to in-game advertising as long as it is seamlessly integrated into the gaming experience and does not disrupt gameplay. They appreciate ads that are relevant, non-intrusive, and provide some value or benefit to them.

Trends in the market: One of the key trends in the In-game Advertising market in Indonesia is the rise of native advertising. Native ads are designed to blend in with the gaming environment and appear as natural elements within the game. This approach allows advertisers to reach gamers without interrupting their gameplay and enhances the overall gaming experience. Advertisers are also leveraging the power of influencer marketing to promote their products or services within games. Collaborating with popular gaming influencers allows them to tap into their large and loyal fan base, resulting in increased brand exposure and credibility. Another trend in the market is the use of programmatic advertising. Advertisers are increasingly using automated technologies to buy and sell in-game ad inventory. This not only makes the process more efficient but also enables advertisers to target specific audiences based on their demographics, interests, and gaming behavior. Programmatic advertising also allows for real-time optimization and measurement of ad performance, enabling advertisers to make data-driven decisions and maximize their return on investment.

Local special circumstances: Indonesia has a large and rapidly growing gaming market. With a population of over 270 million people and a high smartphone penetration rate, the country offers a huge potential for in-game advertising. The rise of affordable smartphones and the availability of affordable mobile data plans have made gaming accessible to a wider audience, including those in rural areas. This has led to an increase in the number of gamers in Indonesia and has created new opportunities for advertisers to reach this audience through in-game advertising.

Underlying macroeconomic factors: The strong economic growth in Indonesia is also contributing to the development of the In-game Advertising market. As the country's middle class continues to expand, there is an increase in disposable income and consumer spending. This provides advertisers with a larger pool of potential customers and creates a favorable environment for advertising and marketing activities. Additionally, the digital advertising industry in Indonesia is supported by the country's growing internet penetration rate and the increasing popularity of e-commerce platforms, which provide advertisers with a wide range of digital advertising channels to choose from.

Data coverage:

The data encompasses B2C revenues. Figures are based on in-app advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers ad spending on advertisements displayed within a mobile application.

Modeling approach / Market size:

The market size is determined through a combined top-down and bottom-up approach. We use market data from independent databases, the number of application downloads from data partners, survey results taken from our primary research (e.g., Consumer Insights), and third-party reports to analyze and estimate global in-app advertising spending. To analyze the markets, we start by researching digital advertising in mobile applications for each advertising format, incidents of in-app and mobile browser usage, as well as the time spent in mobile apps by categories. 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, mobile users, and digital consumer spending. Lastly, we benchmark key countries and/or regions (e.g., global, the United States, China) with external sources.

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.

Additional Notes:

The market is updated twice per year in case market dynamics change. Consumer Insights data is unbiased for representativeness.