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Indonesian Business Spend USD 40 Million A Year In Online Advertising

Indonesian business advertising spending on digital media or online are expected to continue to increase in accordance with the increasing use of Internet in Indonesia. In the next five years, spending on Internet advertising is expected reach USD 150 million.

Effective Measure Regional Director, Russell Conrad said increased advertising spending in Indonesia is still relatively small when compared with China. The business player in China has chosen the online media as an effective means of advertising. China online advertising spending in the next five years could reach as high USD 400 million. “But the digital media ad spending in Indonesia will continue to increase even though it’s only about USD 40 million per year (at the moment)” Russell said on Friday (1/4/2011).

The internet usage at the moment is only 17 percent.

Increased ad spending in cyberspace is due to the internet popularity which began to spread to almost all ages and walks of life in Indonesia. The increasingly popular smart phones and BlackBerry also facilitate the community access to internet. Still, Russell said the level of internet penetration in Indonesia is very small at around 17 percent.

According to Russell, the Indonesian Internet growth could be encouraged by the better government’s efforts in building an adequate IT infrastructure that could reach the entire island in Indonesia. If Internet usage is evenly distributed in all regions, then the business will also be willing to spend more of their advertising funds to advertise on the Internet.

As a survey company, Effective Measure according to Russell conducted a survey of 39.1 million Internet users and 100 known sites in Indonesia. The institution provides data and site visitors profile to help advertising agencies and prospective companies to advertise.

Advertising on the online media has advantages over other more traditional media because it can be interactive, more interesting and more varied.

Alexa stats show that the number 1 site visited by Indonesian at the moment is Facebook surpassing Google. Indonesia is the second country with the most number of users at Facebook. While the most visited Indonesian site by Indonesia is which is a forum followed by the first Indonesian online news site

At the moment Google advertising program which is the biggest and the easiest to use does not allow ads display on Indonesian language website limiting the advertising exposure of Indonesian business towards Indonesian population.

Indonesian own advertising company Sitti while made a big splash last year has not been able to provide a viable advertising alternative to Google ads forcing most Indonesian big spenders to go through the more traditional route of direct advertising.

Posted on JakartaUpdates Apr 04, 2011

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