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Indonesia Mobile Data, Broadband & Forecast Monetizing the Mobile Market By Aktifmob Media


Acknowledgements Data compiled with aides from: –  The Jakarta Globe –  The Economist –  Nielsen –  Morgan Stanley –  Italogani –  Andy Zain & Andi Boediman


Where do  mobiles  sit  in  our  psyche?   1.  2.  3.  4.  5. 

13% regard  it  as  their  best  friend;   14%  of  us  would  answer  during  sex;   Almost  90%  would  take  it  to  the  toilet  with  them     28%  of  us  send  sexually  explicit  messages  via  SMS;   70%  have  ‘snooped’  through  their  partner’s  mobile  phone  &  34  %   have  had  a  friend  call  them  during  a  date  to  interrupt  if  necessary.     6.  12%   per   cent   of   single   females   would   be   less   likely   to   date   someone  carrying  a  clunky  mobile  phone.     7.  Increasing,  our  mobile  is  our  most  important  form  of  media  (and   we’d  keep  against  all  others);   8.  We  are  more    likely  to  go  back  for  our  mobile  as  we  are  for  our   keys  and  wallet..    

Virgin  and  Samsung  2007  

 


Indonesia Mobile Summary

Facts on   Digital   Media  

Market Highlights 1.  2.  3.  4.  5. 

6. 

Indonesia’s mobile market passed 260 million subscribers in early 2012 with penetration running at just over 107%; After years of strong growth, the annual increase in mobile subscribers had moderated somewhat by 2012 to somewhere around 15%; The 3G market had got off to a slow start, but by 2011/2012 there were sign of a surge in growth, with sales of smartphones jumping sharply; Internet user penetration remained low (10% user penetration by end-2011) and internet subscription rates were considerably lower; With broadband internet access numbers in Indonesia growing rapidly, by 2011 broadband as a proportion of the total internet subscriber base was running at almost 70%; DSL remained the dominant broadband platform for the time being; the heavy reliance on limited copper-wire infrastructure to access DSL services offers a huge opportunity for increased use of wireless-based internet access.

Peter Evans – BuddeComm, May 2012


Key Telecom Parameters

Facts on   Digital   Media  


Digital Media on Youth

Facts on   Digital   Media  

Smartphones have  become  the  defacto  rather  than   the  excep9on  ~  Student  Village  2011  

65%

Of all youth mobile phones purchases are influence by earned media ~ MobileYouth 2011

60%

Sleeps with their phone MobileYouth 2011

Youth discovered “SMS” as a tool to create social space Young females audience in Emerging Market, BBM

evolves into social groups. Indonesia is RIM’s #1 & Largest Market 6


Growth of Mobile Money

Facts on   Digital   Media  

Transac9on is  the  key,  mobile  banking  has  surpassed   all  expecta9on  

79%

Of all telco subsribers are accustom to sms payment ~ Telkomsel 2010

3.7mio Total of Telkomsel T-Cash users in December 2010

3.7

New Online Commerce and Portal being build in Indonesia ~ IDC 2011

Indonesian has accustomed to SMS payment model mechanism since 2003

Youth are the most active users of mobile money 7


Attention is the biggest cost Attention grabbing media

34% 104million+

Youth trusted Ads most of the time ~ YouthMobile 2011

Total number of Telkomsel subscribers (June 2011) Telkomsel 2011

Ă ďƒ  180million+ Indonesia mobile subscribers *) Data as of May 2011

Indonesian women holds and manage their household expenditures

83%

MarkPlus 2011

8

By population


INDONESIA ON MOBILE

Sunday, February 27, 2011


INDONESIA ON MOBILE SOCIAL MEDIA Ubertwitter traffic 2011 No

Country 1 US 2 Indonesia 3 UK 4 Australia

!F8G&-E&/.0-.1)#(& H(413--A&2)15&#)& (441))#.$&<'52& +-3#,1?& I<1J'1.&K-,(.9&D-++154#(,&K#514<-5& LE&H(413--A&M)#(& Sunday, February 27, 2011

!"#$%%&'()&**+#,,#-.& /.0-.1)#(&)23)45#3156&& 789888&"#$15)&(:1.0#.$& "#$%%&&-;#.1&4-++2.#<=& $(<'15#.$&-.&>(.*877?& @#A#&B#CA#9&/.0-.1)#(&D-2.<5=&"(.($15&& -E&"#$%%&


THE 3 MAIN INGREDIENTS OF INDONESIA MOBILE GROWTH ? 1. The telco price war : The rate of mobile internet rate is very low 2. The chinese industry revolution : internet-ready handset is very affordable 3. The indonesian people behavior : for the indonesian handphone is a social status, most of Indonesian owns a internet-ready handset.

Sunday, February 27, 2011


THE SYNERGY BETWEEN MOBILE AND SOCIAL MEDIA Social behavior needs is something that instant.... has to be now now and now... Now Generation Mobile manage people expectation for instant action

Sunday, February 27, 2011

We are the now generation This is the now generation This is the now generation ….. I want it I want it I want it Fast internet Stay connected in a jet Wifi-podcast Text me and I text you back Check me on the ichat Iʼm all about that http You are a PC Iʼm a Mac I want it


Overkill vs Functional


MOBILE SOCIAL MEDIA: MIG33 43million+ globally Indonesia contribute 23million (+/- 50%) each month.. yes each month : 30billion chat message 4million virtual gift 1.5billion photo exchange Sunday, February 27, 2011


MIG33 FEATURES Chat & IM Avatar Group Games Virtual Gifts

Sunday, February 27, 2011


COMMUNITY CREATE THEIR OWN T-SHIRT

Sunday, February 27, 2011


2nd annual mig33 day on Jan 30, 2011 was a huge success with

8,000+ users from all over Indonesia in attendance

Sunday, February 27, 2011


HOW ARE THEY ? Income Range Distribution USD/month

Age Distribution 45

35

40

30

35 25 30 20

25

15

20

10

5

5

0

0 11 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33

Sunday, February 27, 2011

0-99 100-199 200-299 300-399 400-499 500-599 600-699 700-799 800-899 900-999 1000-1099 1500-1599 1900-1999 2000-2099 2500-2599 2600-2699 3000-3099 3300-3399 4100-4199 5000-5099 6000-6099 8000-8099

10

15


MOBILE AS A MEDIA Mobile characteristic.. 1. Mass media 2. Truly personal... each media represent one person. 3. A media that always carried along 4. A media that always on 5. A media that support interactivity Sunday, February 27, 2011


80%

of new phones

sold in Indonesia are Internet enabled. There are more than

10 millions 3G users in Indonesia. (5 times broadband users) Source : BMI Report 2009, inMobi


Indonesia is among the HIGHEST in the world in consuming mobile advertising Estimated over

4 billions

ad impression served each month


Indonesia ranks among the HIGHEST in the world for mobile browsing intensity

661 pages

700

525

350

175

per month/person Vietnam China Indonesia

Source : Opera, September 2009

UK South Africa

USA Russia


1. MOBILE AS MASS MEDIA

Mobile user in Indonesia : 160million Mobile internet user : 40% Mobile handset readiness : 80% Mobile generate more internet user that PC or laptop

Sunday, February 27, 2011


2. MOBILE AS PERSONAL MEDIA

Each mobile has their own profile... deliver the marketing communication at the right person. Mobile targeting track by handset type, telco data profiling, etc.

Sunday, February 27, 2011


3. A MEDIA THAT ALWAYS CARRIED ALONG

Sunday, February 27, 2011


4. A MEDIA THAT ALWAYS ON

Sunday, February 27, 2011


5. A MEDIA THAT SUPPORT INTERACTIVITY

Sunday, February 27, 2011


#KNOWYOURTARGERMARKET

1. #INDONESIAISAMOBILEMARKET 2. Make sure that your campaign are mobile-ready..

Sunday, February 27, 2011


Young Indonesians, aged 8 - 24 years old have the highest level of mobile phone ownership in the region, at

80%

penetration.


Internet Users in Indonesia 80

In less than 5 years,

in million

60

half

40

20

2006 2007 2008 2009 2010 2011 2012 2013 Internet Users

Mobile Internet

of Indonesian population will use Internet from mobile access.


What So Big Deal About Indonesia? The 4th largest country in the world (240M population). The 5th largest Internet market in Asia (after China, Japan, India and S.Korea). 150M mobile phone users.


What So Big Deal About Indonesia? Facebook : 3rd largest market worldwide (24M users)

Opera Mini : 2nd largest market worldwide (after Russia)

Twitter : #1 market for Asia.


Why Mobile is Big in Indonesia? Infrastructure

Culture

Price

Choices


c i t as

Pl

The Power of Fruit In emerging market, the usage often driven by bottom of the pyramid I donâ&#x20AC;&#x2122;t have Internet on my phone, I only use Facebook. :)


c i t as

Pl

The Power of Fruit In emerging market, the usage often driven by bottom of the pyramid


Dangdut vs iTunes


Embrace Local


Think Outside The Box


The Monetization Model Looking into monetization potential in Indonesia


Monetising Model bundling commodity & value added work with Telco/ handset for quick win

advertising will grow bigger in a later stage

epayment & ecommerce is coexist to grow together


Digital Advertising Mobile and Internet Advertising market potential


Adoption of Digital Advertising Percentage of Internet Ad Spend out of Total Spend 7 Adoption is slow! In Year 3, percentage of Digital Ad Spend <1%

6 5 4 3 2 0.1%

0.2 0.5%

UK Germany USA Japan India

0.5 0.8%

1 0

1

2

3

4

5

6

7

8


Indonesia Estimated Digital Advertising Market (Internet + Mobile) US $20-30 million

information detik, kompas, kapanlagi, vivanews, etc

search & portal

mobile channel

google, yahoo, etc

Telkomsel, Indosat, XL, etc

community Facebook, Kaskus, etc


Value for the Brand

targeting/ segmentation reach to a specific target market

reach maximum exposure to reach awareness

consumer core target market

engagement interactivity to get consumer insight & loyalty

rich media stimulate interest for the product & services advertised


Advertising Value Chain

Brand

Media Publisher

Media Aggregation

Media Reseller

Advertising Agency

content & community

reach/ segmentation

price bundling/ media mix/CRM

insight/marketing strategy

value proposition


Bundling Commodity & Value Added Value added can be created in various ways to create an attraction factor to commodity products or services


Mobile Market Share in Indonesia Starone 2% Mobile-8 2% Sampoerna TI Smart1% Mobile 82% 2% Axis Hutch 2% 5%

Esia 36% Flexi 60%

XL 18% Telkomsel 51%

Indosat 19% GSM Market Share

CDMA Market Share


Telkom Revenue Contribution Others 1% Network 2% Interconnection 12% Fixed Line 14% Cellular 45%

Data, Internet & Infotech 26%

Fixed line will be declined and replaced by the growth in fixed broadband. Telco has every intention to grow its digital businesses.


Smartphone

total: 3-4 million users

almost 2 new million users/ quarter


a complete ecosystem

cheap call & sms user profile & personalization

credit

mobile community friends update & microblog photo sharing

chat & messenger


Commodity + Value Added Commodity

Value Added

+ Connectivity

Result

= Content

Broadband Content Subscription


Commodity + Value Added Commodity

Value Added

+ Handset

Result

= Content

Feature Phone


Bundling with Telco & Handset By bundling value added service (content/community) with telco & handset will provide a quick win for Internet players.


Value Proposition Unless we have a strong value proposition such as Google, Twitter or Facebook, itâ&#x20AC;&#x2122;s easier to work on a short term exclusive deal with Telco and handset in order for them to have the benefit to promote your content/ community/platform.


Epayment Epayment provides the infrastructure for online transaction and ecommerce


Credit card in Indonesia • • • •

Total credit card from 20 banks: 11.5 million in 2008 45% growth in credit card transactions from 2007 to 2008 USD 10 billion in credit card transactions in 2008 Major credit card issuers typically set aside 0.5% funding to be awarded to customers as points It is estimated that USD 27 million is set aside for redemption in 2008 (50% of issuers)


Ecommerce & epayment Adoption

belibarang.com

ecommerce and epayment needs each other to become widely adopted


Case Study: Plasa.com


Reach a broader market by Internet & mobile plasa.com

m.plasa.com


Provide digital content as well as physical products mobile plasa.com


Key Takeaway Work both on quick win monetization by bundling them with the telco/handset as well as long term branding on the Internet for advertising monetization model. Ecommerce & epayment is shaping its way to offer future monetization model.


“We accelerate Growth”

“M-Commerce: Everything Online”

FEBRUARY 13, 2012


Where we are nowâ&#x20AC;Ś


Everybody needs oneâ&#x20AC;Ś


What we are projected going forwardâ&#x20AC;Ś

37%

Expected internet penetration rate in Indonesia by 2015 from 14% in 2010

53%

Indonesian mobile internet users aged between 18 and 27

633

Indonesian mobile internet user rank highest among the world in mobile browsing intensity (pages per month per person)

107%

Expected mobile penetration rate in 2015 from 97% in 2010 (SIM)

80%

Mobile phones sold in 2010 were internet enabled

Source: Frost & Sullivan


If we see Indonesia in the Regionâ&#x20AC;Ś Double digit growth a thing of the past

Near saturating market for penetration rate coupled with reducing ARPU is limiting the revenue growth Mobile Revenue & Penetration Rate APAC, 2010

16.0%

India

12.0%

Mobile Revenue CAGR (2009-2015)

2010 Mobile Revenue CAGR (%)

14.0%

Bangladesh

10.0%

Cambodia 8.0%

Indonesia

6.0%

Pakistan

4.0%

China Philippines Sri Lanka

Vietnam Malaysia Thailand

Singapore

South Korea

2.0%

Australia

New Zealand 0.0% 0.0%

Japan 20.0%

40.0%

60.0%

80.0%

100.0%

Hong Kong

Taiwan

120.0%

140.0%

160.0%

180.0%

-2.0% 2010 Mobile Penetration Rate (%)

6

Source: Frost & Sullivan


Where we are now â&#x20AC;Ś.

Critical mass is achieved with slowing-down growth rate Mobile Subscription Penetration Rate - SIM (%)

CAGR: 6.57%

153.8

111.9

Mobile Subscriber Growth Rate (%) 12 Base Year (2011)

Projections (2016)

4

Base Year (2011)

Projections (2016) Source: Frost & Sullivan


…And what next….

Industry needs other source of growth where “voice” is tapering down Mobile Revenue Annual Growth Rate (%) 11.2

5.4

Mobile Data Penetration Rate (%) 61.2 Base Year (2011)

Projections (2016) CAGR: 24.09%

20.8

Base Year (2011)

Projections (2016)

Source: Frost & Sullivan


“Everything” is online… are we ready?

As of 2010, wireless broadband penetration rate of approx. 2.5% but is expected to reach around 79% by 2015 driven mainly by “small-screen” mobile 105

Internet Penetration (Mn) 90

20.1% CAGR

74

61

50

2011

2012E

2013E

2014E

2015E

Source: Frost & Sullivan


Indonesia amongst others in the Region

While lags behind other countries, coverage expansion & speed improvement in major cities are increasing BB Penetration (fixed & wireless dongles as % of pop)

Mobile Data Average & Peak Broadband Speed (Kbps) Avg Kbps

37.9%

Peak Kbps

7,792

7,139

2010 4,990 13.3% 1.9%

Singapore

Malaysia

Indonesia

1,086

1,071

Singapore

Malaysia

518

Indonesia

While fixed and mobile internet penetration is still relatively low, we are now can find many hotspots in metropolitan areas â&#x20AC;&#x201C; most of them are free for use Source: Frost & Sullivan, ITU, Internetstats, AMDA


So What is it for Us?


M- Commerce Overview

Handset OS

Indonesia

Nokia S40

7.49% Broadband Penetration: 6% (June, 2011)

27.89%

9.50%

Symbian OS

MTK / Nucleus OS Sony Ericsson OS

Internet Penetration: 16% (June, 2011)

Samsung OS

24.62%

GDP per Capita (2010) : US Dollar 2885

25.51%

Blackberry OS Others

Mobile ads medium/ channel 3.86% 5.31% 10.58%

0.40%

Mobile Ads/ Content Carriers CDMA Operators

0.01% Mobile Content 29.74%

23.24% 26.86%

Glamour & Dating

Hutchison - 3

Entertainment & Lifestyle

Indosat

myGamma & Community

Axis

Search/ Portal/ Services Information Premium Portals Others

Source:Buzz City “ A QUARTERLY BRIEFING ON THE MOBILE INTERNET” Oct 2011

Telkomsel Internet Telkomsel XL Axiata

1.00% 5.45%

9.05% 15.20% 16.86%

18.69% 33.74%


The Journey… to “Everything Online”

Internet development in Indonesia is quite recent – spurred by social networking “Social Media” To share… To express opinions… To be a community member…

“Need to be connected” To contact somebody… To make appointment… To find information….

“Mobile Commerce” To offer goods… To find merchandise… To advertise… To do payments…


How big is the market…

Indonesia has a very small online market revenue but potential for growth is there… Online Commerce Market Size, 2010 (USD Mn)

Mobile Commerce Revenue Projection (USD Bn) 1.03

Ads

Gaming

$8, 39%

67% CAGR

0.1

$11, 54%

Video/music $2, 7%

2010

2011

2012

2013

2014

2015

• Indonesia potentially reach 10 times its current m-commerce industry value by 2015 with the proper ecosystem and infrastructure, technology, & regulatory

Source: Frost & Sullivan


How big is the marketâ&#x20AC;Ś

Indonesiaâ&#x20AC;&#x2122;s growth will likely be fuel by rise in mobile internet users Internet Users Forecast (Mn)

Online Ad Market Size Forecast (USD Mn) 125

145.2

29.7% 73.3% 39.6 8 2010

2010

2015

2015

M-Payment Operator Revenue(USD Bn) 2.1

33.2% CAGR

0.5

2006

2007

2008

2009

2010

2011

Source: Frost & Sullivan


Some key takeaway… Based on Indonesia mobile-centric market, “mobile content” is still limited by bandwidth availability - they fit more into small-screen applications rather than band-width hungry apps.

Big screen vs. small

Full video vs. clips

Rise on digital ads

Indonesia broadband market is predominantly “mobile” centric to access voice & data content. Rich content is more likely goes through big screens. RBT, video clip, games are booming within mobile ecosystem while video streaming is more through PC/ netbook.

Current market is keen of video clip, music, & games download through mobile phones while full video is not feasible due to sub-optimal network quality (long-wait or fail to load) i.e. high bandwidth/ capacity requirements to have ideal ecosystem for streaming rich content

For Indonesia alone, the impression is the world’s second largest, after India, with a total impression of 3.76 billion and is one of four countries that have advertising impressions in total more than 1 billion in one quarter (BuzzCity, July 18th).


See you somewhere…online

Indonesia Mobile Data, Broadband & Forecast  

Compilation of Indonesia Data, Broadband & Forecast from various sources and experts.

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