Digital advertising expenditure share in Indonesia 2018-2020

In 2018, digital advertising made up 21 percent of total advertising spend in Indonesia. By 2020, the share of ad spend made up by digital advertising was forecasted to increase to 27.8 percent, making it the second-largest share of total advertising spending after television.

Main format of digital advertising

     Video advertising was the core of digital advertising in Indonesia. This was because of the change in viewing behavior of the Indonesian consumers that had been leaning towards this direction in the past years. Some of the factors contributing to this trend may be the affordability of both internet data plans and the steady expansion of the 4G network coverage in the country. In addition, digital devices such as smartphones that support this viewing behavior have also been progressively more affordable for most Indonesians.

Digital advertising market outlook

      Other types of digital advertising that have been flourishing in Indonesia are mobile and social media advertising, to name a few. Considering the smartphone penetration rate in Indonesia, with users projected to reach just below 90 percent by 2025 both mobile and social media advertising would most likely continue to grow in the coming years. In a bigger scope, as an advertising strategy that resulted from digital technology innovation, this type of advertising may evolve with advancements in digital technology itself. Besides, the projected increase in the Internet penetration rate in Indonesia may be an indication of how digital advertising may develop in the coming years.