The Internet and Digital Advertising Business in Indonesia


Internet has become one of important part of every human in this world. It can help them to get everything that they need, from information, entertainment to physical product, which can be acquired by buying it via online store. With this situation, we can say that it open more opportunities for business world to develop new way to promote and offer their product and service to the customer. More than that, with the heavy usage of internet like that, it also creates new market that the companies can aim for marketing their product. Indonesia itself can be said as one of the new market that was formed because of the effect of the digital era. Although Indonesia is developing countries, the internet growth and usage in this country can be compared to other more advanced countries. Moreover, in some part, Indonesia also holds higher position.

Internet and Digital Technology in Indonesia

According to the data from several trusted source, Indonesia has become the country in the frontline of the internet usage. Most of people in Indonesia know about internet, use it and even very knowledgeable and skillful at this digital technology. Here is what that data said about Indonesia and internet usage.

–       Indonesian spend 9 hours per day on the internet (4th highest in the world),

–       Indonesian use mobile to access internet for 4 hours and more per day (3rd highest in the world),

–       Indonesian use social media for 3 and more hours per day (3rd highest in the world),

–       The average expense that Indonesian spent to buy product via e-commerce service is $251,

–       50 Indonesian internet user use Ad-Blockers to block ads (3rd highest in the world),

–       72% of web traffic on mobile version website (6th highest in the world),

–       49% social media penetration, which is one of the highest growth in this department (23% per year),

–       130 million Facebook users (4th highest in the world),

–       71% digital optimism. This data tell us that most of Indonesia believe the opportunities that internet can give to them, rather than afraid of the risk from it.

With the data that mentioned above, we can say that Indonesia is one of the most promising markets that any companies can aim. Therefore, the role of digital marketing service and company in Indonesia become much more important than few years back. Digital marketing company will become the frontline or bridge that connects these companies to the customer in Indonesia.

However, even though the digital marketing service has raised its position and become much important part of business marketing in Indonesia, they still need to face challenge in Indonesia. And, we can say this isn’t something that can be solved easily. Digital marketing service need to use their full resource, if they want to deliver the best service and result for their client, in order to connect their client to the market in Indonesia.

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The Challenge

The first challenge is facing and dealing with the trend that is currently happening and will happen in the future. Some of important point that digital marketing service need to aware are:

–       The increase of social media position and importance in Indonesia internet user. Nowadays, social media has become not only an online media to share information and communication. But, it also becomes the place where its user can get product and service that they need. For company, social media can become the place to promote their brand, which can affect how the company will run and survive in the future.

–       Just like mentioned before, user of social media also uses social media to get product and service. In fact, 59% of customer of online business uses social media to find information that can help them, when they want to buy product via online store.

–       The audio-visual campaign is much more effective to send the message to people. This will change how digital marketing service approach, in order to promote their client product or service.

–       Voice control is in trend. There is possibility that in the near future, keyboard, typing and screen touching will be replaced by it.

–       There is also increasing in image search.

So, by looking at those trends, digital marketing will also need to adapt and change their approach. Some of the strategy and method that they can use are:

–       Direct message,

–       Social media optimization,

–       More accurate news/information about the product,

–       Involving the consumer more,

–       Provide better digital communication by optimizing the usage of video chat as well as payment system.

Basically, what digital marketing agency needs to do is adapting and walking along with the trend and technology growth. And, in Indonesia, we can see this happen, because Indonesian is very aware about the technology and internet, just like mentioned earlier. Even though it seems that Indonesia is good environment for digital marketing agency to run their business, but there are still limitation and we can even call it as problem that the agency must face.

The Problem in Indonesia

Most of the digital marketing agencies face the similar problem, when they run their business in Indonesia. There are many factors that cause these problem and limitation, either internal or external factor. Some of the problems that digital marketing agencies in Indonesia have to face are:

–       Budget problem. It’s actually small problem, because we can say that it will be solved in near future. Government has created many programs and incentive that can help many businesses and company to deal with their budget problem. So, we just need to wait.

–       Skill and resource problem. There is gap between the human resource quality from Indonesia and other countries.

–       There are no accurate measurement tools, which make digital marketing agencies difficult to evaluate their strategy. This situation holds their growth.

–       Consumer habit that change too fast.

–       The mistake in measuring the budget that agencies need to spend for ads and the result that was planned to get. Mostly, this is because of the other problem and limitation.

–       Consumers’ attention to the ads is lower than what was expected. According to the data, the average of the time span to see ads only 8 seconds. Therefore, it is difficult to create content or campaign that can really deliver the message to consumer with just this span of time.

–       50% of internet user use Ad-blockers. This means the standard ads strategy won’t work too well.

–       Internet infrastructure is far left-behind the nearby countries. In Indonesia, the average of internet connection speed is only 9.8 mbps. This is much lower than neighbor country, such as Singapore (54 mbps) and Malaysia (16 mbps).

With those kind of problem, digital marketing agency need to work harder in order to be able to service and provide best service for their client. However, there is good news about the condition of digital advertising in Indonesia. According to the report, there will be growth of the amount of the budget that spend for this purpose, which is from $2.1 billion in 2018 and it increase more than 100% in 2020, which reaches $4.3 billion. Therefore, digital marketing agencies will have much room to maneuver during this time to make their position stronger and provide the best result for their client, regardless the problem that they need to face for Indonesia market.

Arfadia Creative Digital Marketing Agency

What Digital Marketing Agencies Should Do?

The most important thing here is adapting with the trend and condition in digital advertising market in Indonesia. However, in concrete way, there are several features that digital marketing agencies can provide, in order to satisfy their client, such as:

–       Geolocation feature,

–       Chatbots,

–       VR,

–       Augmented Reality,

–       Live streaming,

–       User-generated content.

–       E-Learning,

–       Software Production.

Arfadia Social Media Marketing Agency

The Example

Among many digital marketing agencies that we can find in Indonesia, there is one agency that we considered to be one of the most prepared agency in facing the digital advertising market and situation in Indonesia. It’s called Arfadia. This company has run since 2011 and has complete infrastructure, such as web application, mobile app and website development. They also can provide the help for multimedia content production.

Arfadia also has team of skillful and experienced expert that can provide good service for digital advertising purpose. They also have successfully get certification for their business, which add more value on their business and service. The certifications that they get are:

–       Quality Management System, ISO 9001: 2008

–       Environmental Management System, ISO 14001: 2004

–       Management System Occupational Health and Safety, OHSAS 18001: 2007

Arfadia Jasa Pembuatan Website Terbaik dan Profesional

Arfadia is company that runs their business from Jakarta. But, because this company is full digital marketing company, anyone from all over the area in Indonesia and even world, can access their service and use them. Therefore, we can say that in the upcoming year, this company can become the important part of the digital advertising change. And, it won’t be so surprising, if we can see the business boom in digital advertising market in Indonesia, started from this company. We just need to wait.

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