Home News These are Some of the Challenges Facing Video Advertising Industry in Indonesia

These are Some of the Challenges Facing Video Advertising Industry in Indonesia

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Mobile video ad spend will reach $ 8.6 billion worldwide by 2018. The video advertising industry in Indonesia itself is already very well prepared for the explosive growth, but there are still some challenges such as quality control issues and lack of transparency. This statement was disclosed by Alex Merwin, Vice President of International and Current Interim MD, SpotX JAPAC, during a press conference in Jakarta (5/5).

Indonesia is a rapidly growing market in the video and mobile advertising industry in the regional class, according to a report from TubeMogul. In fact, spending on mobile advertising will triple by 15.5% in digital ad spending in the country. However, Indonesia still adheres to the market that is still ‘traditional’ that is solely dependent on previous advertising experiments and trust in media buying process.

According to Alex, despite the fact that Indonesia is the “home” of the 4th largest mobile market in the world and has long been considered a mobile-first country, media owners in Indonesia and online publishers are still vigilant and hesitant to enter the programatics market as it is still A new thing.

One of the reasons for this problem is the lack of transparency in terms of the quality of inventory purchased. And, the fraud that occurs, where the ads are displayed on websites that are not supposed to. About 40% to 50% of the impressions are generated from less qualified websites.

“Most media owners do not have access to monitor the ads provided or in different situations, some platforms can not measure their visibility. Therefore, averaging at least 65% of the impressions are generated in the absence of measurements on its visibility or on fraud in getting total views before it is given to advertisers, “Alex said.

Another more fundamental challenge, owned by media owners is that Indonesia has the lowest connectivity speed compared to other leading Asian countries. However, this obstacle will also soon be overcome with the announcement of the government that will make an investment of $ 1.5 billion on a fast internet connection, as well as the influence of telco players who are currently into the era of LTE networks to get mobile data speed faster. As a result, the speed of online video streaming will increase, which is expected to be followed by spending in advertising spending.

 

Left-right: Ade Parulian, Director of Demand Facilitation SpotX Indonesia; Alex Merwin, Vice President International and Current Interm MD, SpotX JAPAC

“Modern ad serving and programmatic infrastructure can solve these issues for media owners, while also giving advertisers the means to target ads across screens. We expect a significant share of TV ad budgets in the country to transition to online video once these factors are addressed,” said Alex.

He believes, with more than 10 years of experience, Spotx’s programming video advertising platform will be well received in Indonesia. This platform has offered trusted technology that gives full control to media owners in monetizing content through video ads worldwide.

SpotX is present in the marketplace to provide the tools needed by media owners to maximize video revenue, whether through desktop, mobile, and connected TV. The platform also provides the full control, transparency, and insight needed to address fraud in advertising and quality issues in the marketplace.

SpotX has served 9 billion more ad requests per day and provides impressions in over 190 countries. In Indonesia, we have established a partnership with Kapan Lagi Network, Liputan6.com and Kompas.com, “said Ade Parulian, Director of Demand Facilitation SpotX Indonesia, hoping the entry of ad serving and programmatic services can increase video advertising expenditure In Indonesia, as soon as the adoption process is widespread.

 

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Tech journalist & blogger. Mobile photography enthusiast. Living in dangerously beautiful Indonesia.

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