DYNATA GLOBAL TRENDS

Focus on Indonesia

David Murphy

Hemant Kumar, Assistant Manager, Online Marketing and Advertising Sales at mobile ad network Mkhoj, throws the spotlight on Indonesia, which is fast becoming one of the world's largest mobile markets

Hemant mkhojIndonesia has been in the mobile advertising limelight in the recent past. The wireless user base in Indonesia recently crossed the 100 million subscriber mark, and is expected to grow to 146 million by the end of 2010. With this growth, Indonesia is set to become the third largest mobile market, after China and India. Insights into the region show that the demographics of Indonesia is a key contributor to mobiles strong uptake in the region. Young people below the age of 27, who form over 72% of the population, have shown a high affinity towards the web, and are driving the bulk of the mobile web usage in this country.
Accelerating the growing success of mobile web is the poor quality of fixed line infrastructure, which is either unreliable, or completely non-existent in places. The mobile Internet forms the obvious surrogate, providing stable connectivity, at extremely cost effective prices. The operators in Indonesia are getting more competitive by the day and the data prices are dropping. In Indonesia, an average user browses 358 pages per month, well above the global average. Understandably, a vast majority of people are choosing mobile phones as the obvious choice for connectivity, and in many cases the mobile is exposing users to the internet for the first time.

Preferred medium

Indonesia ranks second in terms of Mkhojs network traffic, and has seen growth of 62% in the last quarter alone. In Indonesia, communities and content downloads form the top two traffic segments. It is only natural that mobile forms a preferred advertising medium in economies like Indonesia. The key is in educating our advertiser partners to the nuances of the region. Big players in the mobile industry have already taken to mobile marketing in this region. Indonesia has seen several successful campaigns, with various advertisers and publishers, who have enjoyed high ROI and monetization with the help of ad networks like us.
These days, mobile advertising is synonymous with emerging markets like Indonesia. The Indonesian government is also aiding this growth by giving incentives to foreign investors. The government is shifting its focus from larger cities to suburban areas and small towns by earmarking a part of the yearly revenues for the growth of rural areas. The sheer number of users, and the revenues being generated, confirm that mobile advertising is set to shift gears and zoom forward.

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