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The paid media market is strong in Indonesia, where even total media ad spending is predicted to grow at double-digit rates throughout eMarketer’s latest forecast of ad spending around the world.
Advertisers will spend $11.39 billion on ads in Indonesia this year, up 16.0% over 2014 spending levels. Growth will continue steadily through at least 2019, when the total media ad market in the country will reach $19.58 billion.
Digital’s share of that market is still in the single digits, eMarketer estimates, but is rising fast. By 2016, more than one in 10 ad dollars in Indonesia will be spent on digital channels—including mobile—and in 2019, the share will exceed one in four. That will bring Indonesia up from the bottom of the list of countries broken out in our forecast, ahead of Argentina, Brazil, Italy, Spain and France.
Mobile internet ad spending, meanwhile, will triple this year in Indonesia to account for 15.5% of digital ad spending in the country and 1.1% of total media ad dollars. By the end of our forecast period, a majority of digital ad spending will go toward mobile. Again, this year Indonesia comes in last in share of total media ad spending going toward mobile. By 2019, it will pull ahead of Argentina, Spain, Brazil and India by this metric. Throughout the forecast period, Indonesia will boast the highest rates of total digital and mobile internet ad spending growth of any country eMarketer breaks out.
Search, display and classified ads are all growing at similar rates in Indonesia and will continue to do so through 2019. Display accounts for a slight majority of all digital ad spending and will hold its share steady.
eMarketer bases all of its forecasts on a multipronged approach that focuses on both worldwide and local trends in the economy, technology and population, along with company-, product-, country- and demographic-specific trends, and trends in specific consumer behaviors. We analyze quantitative and qualitative data from a variety of research firms, government agencies, media outlets and company reports, weighting each piece of information based on methodology and soundness.
In addition, every element of each eMarketer forecast fits within the larger matrix of all its forecasts, with the same assumptions and general framework used to project figures in a wide variety of areas. Regular re-evaluation of each forecast means those assumptions and framework are constantly updated to reflect new market developments and other trends.
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