Jakarta, 15 February 2023 – The open internet – comprising of news/websites, over the top (OTT) and connected TV (CTV), music/audio streaming and online gaming – is slated to lead Indonesia’s rising digital media usage. In the last year, 7 in 10 Indonesians have increased their open internet consumption, whilst 2 in 3 Indonesians are expected to increase time spent on open internet channels in the next six months. Based on new research conducted by global advertising technology leader The Trade Desk and Kantar, the findings are highlighted in a first-of-its-kind research report, titled “Gateway to the Open Internet.”
The open internet is at the center of Indonesia’s digital consumption
While Indonesia is often times referred to as the social media capital of the world, the research reveals that Indonesians are in fact spending more time on the open internet. Out of the 283 hours the average Indonesian consumer spends on digital media in a month, more than half (55 percent) of that was spent on the open internet.
The research further highlights a shift away from social media, user-generated content platforms and live game streaming towards channels on the open internet. Data showed that Indonesians plan to significantly increase their consumption of the open internet in the next six months, led by channels such as news/websites, OTT/CTV and music/audio streaming.
“Many may not realize that the amazing online content they’ve come to enjoy are part of the open internet. Today’s consumers are spending more quality time on the open internet. This first-to-market research identifies exciting opportunities for marketers who are looking to advertise beyond social media, and on open internet channels where their target audience are more engaged,” said Purnomo Kristanto, General Manager, Indonesia, The Trade Desk.
Indonesians value premium content on the open internet
Unsurprisingly, digitally savvy Indonesians have become more selective about the quality of content they consume. Premium content (44 percent) and credibility of content (25 percent) are the top drivers that influence their choice of content. The research also indicated that the open internet is where consumers find such content – specifically OTT/CTV and music/audio streaming are most associated with premium and credible content.
At the same time, the nation’s focus on premium content and credibility had a ripple effect on how Indonesians view brands that advertise on the open internet. When comparing a premium-content environment with user-generated content platform, Indonesians were 67 percent more likely to trust brands that advertise on OTT.
Mas Gemi, CMO of Kompas Gramedia Group and Chairman of Indonesia Digital Association said, “Even though Indonesians are spending more than half of their time on the open internet, digital advertising has yet to catch up. In fact, digital ad spend outside of the open internet ecosystem is at least three times higher than the open internet. This research, led by a credible, global leader like The Trade Desk, offers never-seen-before insights that will deepen our understanding of the open internet and importantly, help both marketers and publishers to realise the value of the open internet.”
The open internet meets Indonesians’ multi-dimensional media needs
According to the research, before lunch and after work were the two periods where relative usage of the open internet was higher than on social media and user-generated content platforms. Usage of the open internet peaked when Indonesians catch up on news/websites as part of their long commute to work. As a result, between 6 a.m. – 1 p.m., activity on news/websites exceeded the average media channel by 35 percent.
In addition, many reserve off work hours to pursue their interests and hobbies. To do this, they engage in a variety of media channels including OTT, social media and online games. The data revealed that evenings were prime time for OTT viewing. While half of the daily OTT consumption occurred after work to midnight (7 p.m. and 12 a.m.), the post-work time (5 p.m. – 7 p.m.) represented the peak period where Indonesians enjoy co-viewing OTT content with their spouses and children.
This research report was released in Jakarta today at a media event, supported by leading industry players, namely Kompas Gramedia Group, NOICE and WeTV.