As we enter into 2016, location-based advertising (LBA), video, e-commerce, and mobile apps are digital trends that will continue to evolve in Indonesia.
Location-based advertising, video, e-commerce and mobile apps were four key trends in the Indonesian digital landscape last year. During 2016, these areas will continue to dominate digital marketing strategy in the region, but better data analytics and targeting capabilities will give advertisers more to work with through these channels.
1. Location-based advertising (LBA)
Mobile advertising really began to take off last year in Indonesia, but this year we can expect to see more brands working with telecommunication providers in Indonesia for stronger targeted real-time mobile advertising. Location-based advertising (LBA) will become more evident in retail malls, concert venues, restaurants, and airports.
The use of beacon technology in 2015 allowed advertisers to target customers with real-time offers, coupons, and promotional discounts based on location. However, a lack of data analytics for optimized targeting has prevented them from being able to enjoy any real brand impact.
This LBA has often come in the form of blasting customers with offers that are often not relevant to them. For example, an ice cream brand should only target customers that like ice cream, otherwise it’s a waste of advertising spend. In addition, if everyone receives the same promotional message, the consumer isn’t going to feel very special.
It’s worth noting that Indonesians are a lot more open to receiving advertising, if it relates to a product they really like. Therefore, there are opportunities for brands. Telecommunication providers in 2016 should consider investing in data and analytics to leverage LBA for targeted, real-time advertising and offer content that is relevant and unique to each consumer.
Since Google amplified its search to better cater to video, brands can now see even more value in this medium.
Video is also playing an important role to drive sales in Indonesia. According to eMarketer, in 2014, more than nine out of 10 Web users ages 16 and older viewed digital video monthly, which was up from 51 percent in 2011. More than eight in 10 viewed digital video weekly. After viewing a video ad, 70 percent went on to conduct research at least once on a mobile device and 90 percent conducted research on a desktop or laptop at least once.
Samsung Indonesia and Telkomsel are two brands that have really got their video strategies right in Indonesia.
According to Socialbakers, both of these brands have remained in the top 10 YouTube channels in Indonesia, based on number of subscribers and video views.
Samsung Indonesia and Telkomsel actually have different video content strategies. Telkomsel uploads up to 10 videos a month with most videos averaging higher viewers than Samsung Indonesia. All of its videos are produced locally, and its achievement exemplifies a need for localization as a strategic consideration when developing content for this region. On the other hand, Samsung Indonesia produces up to 20 videos a month, though some attract low views. It also leverages video content from its Samsung Global account.
Here’s one of my favorite YouTube videos for Samsung:
To successfully embrace video content marketing in 2016, brands should have a YouTube channel, but when setting it up, pay close attention to choosing the right name for the account and categorization and tab menus. Include Facebook, Twitter, Instagram, or Snapchat accounts to keep viewers rotating within the brand’s social media platforms. Brands need to create exciting content people want to watch and shares an original idea. Most importantly, to run a successful YouTube account, brands need to produce videos regularly and often.
However, the biggest challenge to e-commerce in the region continues to be secure payment. Indonesia has a low credit card penetration rate and cash on delivery (COD) remains one of the most popular payment systems.
In 2016, I expect to see the introduction of more secure mobile payment systems, which will really push the exponential growth of e-commerce in this region.
4. Mobile apps
Last year we saw brands in Indonesia move into the adoption of mobile apps, especially in the telecommunication and banking sectors. According to App Annie App Store Stats, the top 100 apps for iPhone and Android in Indonesia are dominated by social media apps, e-commerce apps, and telecommunication and banking apps.
One app I regularly use is myTelkomsel app which allows me to check my balance, points, and access customer service, among other options.
When is the right time to develop a mobile app? The answer is when the brand is ready. If the brand is not ready with good, engaging content for an app it will be a wasted investment.
People in Indonesia have limited storage on their phones, so users will delete apps that are of no use to them in order to make room for new ones.Therefore, it is imperative to ensure investment into a mobile app includes quality content that is also relevant.
The key to building successful apps lies in traffic creation and traffic conversion. Yet, the challenge is creating app content that keeps users coming back, which means providing content that solves problems or is a continuous source of new and relevant information.
If your content is standard company information, contact details, and product information, a website is probably enough. But if you have a product that is continually being upgraded or updated with coupon or discount offers, then an app might work well for your brand. Big retail brands, like Zara for example, should have a mobile app for Indonesia.
2016 will be a more promising year for digital marketers. Partnerships between brands and telecommunication providers will be more common, as data analytics is utilized for more targeted and customized advertising. We can expect to see more branded YouTube accounts and video uploads as marketers aim to increase SEO, while smaller enterprises will also discover the power of Facebook slideshow.
E-commerce players and sales will grow rapidly, with more secure, improved mobile payment platforms, but maintaining buyer trust needs to be a core value for all brands operating in the region. Growth in mobile apps will be a trend this year, with social media and e-commerce apps continuing to dominate the top 10.
To learn more about Indonesia’s digital marketing potential, join Safitri Sri, chief marketing officer, Telkom Telstra, at ClickZ Live Jakarta on March 16 and 17.
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