Market Insights Advertising & Media Advertising

In-App Advertising - Indonesia

Indonesia

In Indonesia, ad spending in the In-App Advertising market is forecasted to reach €1,214.00m by 2025.
The market is expected to exhibit an annual growth rate (CAGR 2025-2029) of 7.60%, leading to a projected market volume of €1,627.00m by 2029.
The projected average ad spending per mobile internet user in the In-App Advertising market is €4.94 in 2025.
When compared globally, United States is anticipated to lead in ad spending with €134.40bn in 2025.
Indonesia's in-app advertising market is experiencing rapid growth due to the country's increasing smartphone penetration and digital marketing investments.

Key regions: China, Europe, United States, Asia, Germany

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Analyst Opinion

The In-App Advertising market in Indonesia is experiencing significant growth, driven by changing customer preferences and the increasing popularity of mobile applications.

Customer preferences: Indonesian consumers are increasingly relying on mobile applications for various purposes, such as communication, entertainment, and shopping. This shift in consumer behavior has created a lucrative opportunity for advertisers to reach their target audience through in-app advertising. With the rise in smartphone penetration and the availability of affordable mobile data plans, more Indonesians are spending a significant amount of time on their mobile devices, making in-app advertising an effective way to engage with them.

Trends in the market: One of the key trends in the In-App Advertising market in Indonesia is the growing adoption of programmatic advertising. Programmatic advertising allows advertisers to automate the buying and selling of ad inventory, enabling them to target specific audiences and optimize their campaigns in real-time. This trend is driven by the increasing demand for personalized and relevant advertising experiences, as well as the need for efficient and cost-effective advertising solutions. Another trend in the market is the integration of native advertising within mobile applications. Native ads are designed to seamlessly blend with the app's content, providing a non-disruptive user experience. This form of advertising is gaining popularity in Indonesia as it allows advertisers to deliver their messages in a more organic and engaging way, increasing the chances of user interaction and conversion.

Local special circumstances: Indonesia has a large and diverse population, with different cultural backgrounds and languages. This diversity presents a challenge for advertisers who want to reach a specific target audience. However, it also creates opportunities for localized advertising campaigns that cater to the unique needs and preferences of different regions and communities within the country. Advertisers can leverage this diversity to create more personalized and relevant in-app advertising experiences, increasing the effectiveness of their campaigns.

Underlying macroeconomic factors: The growing In-App Advertising market in Indonesia is also influenced by several macroeconomic factors. The country's strong economic growth and increasing middle-class population have contributed to the rise in consumer spending, including mobile advertising. Additionally, the government's efforts to improve digital infrastructure and promote digital literacy have resulted in a higher adoption of mobile devices and mobile internet, further fueling the demand for in-app advertising. In conclusion, the In-App Advertising market in Indonesia is witnessing significant growth due to changing customer preferences and the increasing popularity of mobile applications. Advertisers are leveraging programmatic advertising and native advertising to engage with their target audience in a personalized and relevant manner. The country's diverse population and strong macroeconomic factors also contribute to the development of the market, creating opportunities for localized advertising campaigns.

Methodology

Data coverage:

The data encompasses B2B enterprises. Figures are based on in-app advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers ad spending on advertisements displayed within a mobile application.

Modeling approach:

The market size is determined through a combined top-down and bottom-up approach. We use market data from independent databases, the number of application downloads from data partners, survey results taken from our primary research (e.g., the Consumer Insights Global Survey), and third-party reports to analyze and estimate global in-app advertising spending. To analyze the markets, we start by researching digital advertising in mobile applications for each advertising format, incidents of in-app and mobile browser usage, as well as the time spent in mobile apps by categories. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as GDP, mobile users, and digital consumer spending. Lastly, we benchmark key countries and/or regions (e.g., global, the United States, China) with external sources.

Forecasts:

We apply a variety of forecasting techniques, depending on the behavior of the relevant market. For instance, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year.