In recent years, there’s been a shift in the advertising industry toward using advertising technology (adtech) both online and in the more traditional settings. Indonesia’s adtech startups are making the most of the country’s growing population and the rising use of the internet and mobile phones to market products and services.
By 2022, the total advertising market size in Indonesia will be over $4 billion USD. Technology is changing the landscape by bringing greater efficiency to how companies use their ad spend. Now, there’s more data to analyse, a broader market reach, and better solutions to promotional activities.
Even so, adtech startups in Southeast Asia still face problems, such as insufficient investment, consumers shifting to new channels, and enhanced competition because of the introduction of artificial intelligence. There are also questions regarding online privacy, user tracking, mass ad spamming, and regulatory challenges.
Luckily, none of these issues is slowing down the impact and demand for digital solutions in one part of Southeast Asia. The adtech scene in Indonesia is booming, and here are some companies making their mark.
Feedloop
Feedloop is a digital marketing platform founded in 2018 to simplify business operations and improve customer experience. It collects data, allows for analysis, manages workflow, tasks and inventory, and handles customer complaints. Moreover, it personalises the customer’s journey leading up to a purchase.
The product engages and retains users, helping with the lifetime value of a customer, and marketers can use it to create campaigns, surveys, and other advertising tools.
In June 2019, it received seed funding from East Ventures and developed a partnership with digital media company Narasi.tv to deliver video content with a more interactive approach.
Since companies need personalised promotional tools at a low cost, Feedloop will continue growing even during the ongoing pandemic.
StickEarn
In 2016, revolutionary company StickEarn entered the advertising scene with its “out-of-home” (OOH) solutions. Its approach brings brands and drivers together to display adverts outside and inside vehicles. They provide data, reports, and analytics to their clients to improve marketing campaigns.
StickEarn partnered with unicorn Grab Indonesia in 2018 to establish StickMart, an in-car advertising solution. The company installs a multimedia device for ride-hailing passengers to view diverse ads during journeys.
To date, StickEarn has raised more than $6 million USD from investors, such as East Ventures, Grab, SMDV, and Ovo. Soaring population numbers and the constant traffic jams mean the startup has many brand-promoting opportunities.
Adskom
Adtech company Adskom provides consultancy and programmatic advertising services to clients. It analyses data to create unique ad campaigns and improve their marketing execution through automation, and delivers relevant ads to the appropriate customers at the right place and time.
Although its funding is currently less than $1 million USD, it has GENIEE, MDI Ventures, and Keith Yuki Isobe investing in them, and they partner with Kompas.com, Mediacom, and Mobvista.
Adskom helps companies manage their ad budgets, analyse data better, and employ the best technology to deliver relevant ads to customers.
Ayo Slide
Ayo Slide is an Android mobile advertising platform founded in 2016 that allows brands to place advertisements on a phone’s lock screen, and the mobile user can swipe the ad away or interact with it. Customers receive incentives, such as vouchers, loyalty points, or airtime when they engage with an ad.
The company has received over $100,000 USD worth of investment from Kejora Ventures, Indosat Ooredoo, and Mountain Partners Southeast Asia. Its innovative platform has access to an elevated number of customers with increased smartphone penetration in Indonesia.
SociaBuzz
The creator and influencer marketplace, SociaBuzz launched in 2015 to give marketers access to popular social media users who could boost a company’s brand. These influencers create content or use word-of-mouth to push marketing campaigns on behalf of a business. Content creators on the platform can also promote and sell products to their followers.
Last year, SociaBuzz received another round of funding, bringing its total to over $60,000 USD through investors such as Ideabox, UMG IdeaLab, Mountain Partners Southeast Asia, and Kejora Ventures.
SociaBuzz is likely to grow as more brands try to get the word out about their products and services, and advertisers will carry on using the platform because they can choose specific influencers for their niche or industry.
Before the COVID-19 crisis, there was already a high growth of adtech startups in Southeast Asia to meet the digital advertising demands of the region. Indonesia’s adtech startups benefitted from the pandemic-induced increase of online users and accelerated digital consumption last year, and this trend is likely to continue.
The adtech scene in Indonesia has many challenges, yet the future is bright. Companies are receiving more funding and are launching various innovations to meet ever-changing customer needs. This demand and supply should ensure that the adtech startup ecosystem and the market thrives.