SpotX has entered into the Indonesian market, offering a one-stop video monetisation solution, modern ad serving and sophisticated programmatic capabilities to the market for the first time.
SpotX’s entry into the market provides media owners the tools for maximizing video revenue across desktop, mobile and connected TV, while giving them the control, transparency and insights needed to combat the ad fraud and quality issues prevalent in the market.
Speaking in a press conference in Jakarta, Alex Merwin, Vice President of International at SpotX, explained the crucial role of advanced ad serving and programmatic infrastructure in monetising video in the country. “Video advertising in Indonesia is poised for explosive growth, but it is being held back by quality control issues and a lack of transparency. 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,” Mr Merwin said.
Despite being the fourth-largest mobile market in the world, and a mobile-first country, Indonesian media owners have been hesitant to dip their toes in programmatic waters. One of the barriers has been a lack of transparency around the quality of the inventory being bought, with as much as 40 per cent to 50 per cent of ad impressions being served on poor quality sites.
In discussions with media, Mr Merwin said, “Most publishers do not have the tools to measure viewability. We estimate that around 65 per cent of impressions are unviewable or delivered to non-human traffic. To overcome this, SpotX will enable Indonesian media owners to verify viewability and remove fraudulent traffic from the platform before it is passed to advertisers.”
Another underlying challenge faced in Indonesian is connection speed, which is one of the slowest among Asian countries. This barrier will also be addressed in the short term, with the government announcing a USD 1.5 billion investment in high-speed internet, as well as Indonesian telcos moving towards LTE networks for faster mobile data speed. As a result, online video streaming speed will increase, and advertising spend will follow.
Indonesia is the fastest growing market for video and mobile advertising in the region, according to a report from TubeMogul. In fact, mobile ad spend will triple this year to account for 15.5 per cent of digital ad spend in the country. Programmatic in Indonesia, however, is still in nascent stages, with the market relying on tried and trusted ‘traditional’ media buying processes.
SpotX expects the entry of advanced ad serving and programmatic to fuel explosive video ad spend growth in the country, once its adoption becomes more widespread.