Market Trends of Indonesia OOH And DOOH Industry
Ongoing Shift Toward Digital Advertising Aided by Increased Spending on Smart City Projects
- Digital advertising is proving to be a potent tool for businesses, aiding in customer acquisition and revenue diversification. Its pay-per-click model ensures cost-effectiveness, with businesses only paying when their desired campaign actions are taken. Moreover, its precise targeting features ensure that the right audience is prompted to act.
- Indonesian businesses are increasingly leveraging digital platforms, recognizing their pivotal role in the nation's advertising arena. Notably, end-user sectors like travel, tourism, and hospitality are spearheading initiatives to reignite consumer interest in travel. In a bold move, Tourism Indonesia rolled out a global campaign showcasing the nation's vibrant tourism offerings.
- Smart city initiatives utilize various digital displays to optimize urban operations, with each display offering potential revenue through advertisements. Digital signage technology is crucial in monetizing these opportunities. From small interactive kiosks to large digital billboards, these systems provide robust computing power, high-quality graphics, and seamless connectivity. They not only create a significant impact but also deliver essential analytics for informed decision-making.
- For instance, in May 2024, the US Trade and Development Agency signed a technical assistance grant with Indonesia's Nusantara Capital Authority (OIKN) to develop priority smart city infrastructure in Nusantara, Indonesia's new capital. These technologies will optimize government resources, increase sustainability, and improve the quality of life for the city's residents.
- The urban population in the country is on the rise, expanding the audience for DOOH displays. Although Indonesia's urbanization historically lagged behind global trends, it is now rapidly catching up. World Bank data shows that Indonesia's urbanization rate climbed from 55.33% in 2018 to 58.57% in 2023, with projections indicating a continued upward trajectory, bolstering market demand.
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Retail and Consumer Goods Sector to Witness Major Growth
- Integrating in-store and retail DOOH advertising into an omnichannel marketing strategy creates a vital consumer touchpoint. This connection spans the shopper's entire journey, enhancing the overall experience with cohesion and consistency.
- According to a survey by Snapcart in Indonesia in 2023, the majority of respondents from Gen Z and Gen Y preferred online shopping platforms. Consumers’ growing interest in online shopping is compelling brands to attract more audiences.
- Bank Indonesia reported a notable rise in Indonesia's retail sales index, surging from 201.2 in February 2023 to 214.1 in February 2024. With this uptick in retail sales, brands are increasingly eyeing the potential for amplified advertising. Digital out-of-home (DOOH) emerges as a strategic avenue, allowing brands to precisely target consumers during their purchase decisions right at the point of sale.
- Engaging consumers is crucial for boosting retail sales. Interactive OOH advertising enhances this engagement by turning ads into interactive experiences. For instance, fashion retailers use interactive displays to allow consumers to browse collections and make purchases instantly, capturing their interest and encouraging immediate action.
