小倉さん

Hirotaka Ogura
Country Manager of Indonesia branch, Global Business Division, Adways

In this chapter, I will talk about infrastructures in Indonesia which have drastically improved in the recent 2-3 years.

In terms of payment methods, since 2015, GooglePlay payment can be made through major mobile carriers of Indonesia and in this year, Indomart, the Indonesian convenience store giant, supports GooglePlay payments at its stores.

Internet infrastructure had a great improvement as well. Until very recently, 4G network was limited only in Jakarta area, but now the biggest mobile carrier, Telkomsel, has announced the expansion of the service to 100 cities in the country and other mobile carriers are estimated to follow the lead.

In the next and the last chapter on Indonesia, I would be talking about tips for new global developers eager to advance into Indonesian market, providing some local precedents.

小倉さん

Hirotaka Ogura
Country Manager of Indonesia branch, Global Business Division, Adways


In the latest blog, I have explained the great potential of Indonesian market using the smartphone penetration rate and population composition in Indonesia. This time, I will talk from the app marketing standpoint.

In current Indonesian market, there are not so many app marketers like Adways who has its branch in the country, instead a lot of companies place their head office in Singapore and try to cover Indonesian market from there which might lead to potential lack of understanding of the market trend.no1

Out of all the advertisement options, Mobile CPI advertisement is a high demand service of app marketing in Asia, and it is classified into two types, incentive advertising and non-incentive advertising. Both types have strengths and weaknesses. Incentive advertising can gain users by low CPI, however, the user quality tends to be poorer. On the other hand, Non-incentive advertising tends to be high on CPI, yet it can acquire high-quality users.

What sets good users here is the user retention rate. Most of the game developers are measuring the user retention rate from the changes in a number of the users of the day after the app is installed, a week after, and a month after.

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The below is the retention ranking provided by Appsflyer, a mobile advertising attribution and analytics company.

No.1:Twitter
No.2:Google Adwords
No.3:Facebook
No.4:Ad Colony
No.5:App Lovin
No.6:Seads
No.7:Vungle
No.8:BBM

The top 3 companies, Twitter, Google Adwords, and Facebook are well known mega-media. Following 4th and 5th media, Ad Colony and App Lovin, are famous in Europe and The United States, and the next 6th and 8th advertising media, Seads and BBM have a strong influence in Southeast Asia. Seads is Adways’ non-incentive advertising ad network service, mainly operating in Southeast Asia. BBM has a head office in Canada thus it is little known that their largest market is, in fact, Indonesia. In addition, BBM is the most popular messaging application in Indonesia. the number of Indonesian users alone is estimated to be over 54 million.

Stay tuned for the next chapter to find out the situations of infrastructures around mobile industry in Indonesia!

小倉さん

Hirotaka Ogura
Country Manager of Indonesia branch, Global Business Division, Adways


What is the strongest incentive for mobile game developers to expand their business into Indonesia? It is simple. Population.

Indonesia is the 4th biggest country after China, India and The United States. There are 256 million people. Moreover, smart phone penetration is increasing remarkably especially in recent years. We estimate that there are 70 to 80 million smartphone users in the country. As the smart phone penetration is roughly 30 % across Southeast Asian countries, consequently, Indonesia by far has the biggest audience.

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So now we know about population size and fast penetration rate of smartphones. Our real interest is whether these users would actually pay for mobile games or not. To answer this question, the number of gamers and credit cards issued in Indonesia will be very helpful.
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One remarkable finding is that about 70% of the population is taken up by people under 30 who typically has higher willingness to spend money on mobile games. Moreover, there are many mobile game players. It is, on the other hand, apparent that the in-app-purchase market is premature as penetration of debit card is less than 50% and credit card penetration still stays less than 10%. We should not hold our breath for credit card penetration to rise in the near future as Indonesia still has a great income gap and high unemployment rate.

So far I have explained how Indonesia is a highly desirable market with a potential to grow. But the in-app-purchase culture has not developed much yet.

From autumn 2015, however, we are certainly seeing the increasing number of companies from Greater China and Korea going into Indonesian market as the number of mobile game players grow significantly. Around the same time, the amount of inquiries regarding our services in Indonesia has started to increase and some developers have tried to tackle Indonesian market through our services. As more countries and developers try to conquer Indonesian market, there are more app marketing methods practiced in Indonesia now.

In following chapter, I will focus on the details of preexisting mobile app marketing in Indonesia.

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