Date post: | 17-Oct-2014 |
Category: |
Technology |
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Monetizing the Indonesian Internet and Mobile Market
Andi S. BoedimanPlasa.com@[email protected]
Andy ZainMobileMonday@[email protected]
67% of the world population is
on mobile
Mobile is BIG
Source : Tomi Ahonen (Nov 10, 2009)http://communities-dominate.blogs.com/brands/2009/11/the-digital-divide-in-numbers.html
CarPC
TVRadio
Mobile Phone
Mobile is BIG
4x PC ownership
3x TV ownership
Source : Tomi Ahonen (Nov 10, 2009)http://communities-dominate.blogs.com/brands/2009/11/the-digital-divide-in-numbers.html
In IndonesiaMobile
is even a much
BIGGER deal
There will be estimated
210 millions mobile phone
subscribers by end of 2009
(5 times Internet users)Internet Mobile
Source : BMI Report 2009
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 pagesper month/person
175
350
525
700
Vietnam UK USAChina South Africa RussiaIndonesia
Source : Opera, September 2009
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
20
40
60
80
2006 2007 2008 2009 2010 2011 2012 2013
in m
illio
n
Internet Users Mobile Internet
In less than 5 years,
half
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
The Power of FruitPlastic
The Power of FruitPlastic
In emerging market, the usage often driven by bottom of the pyramid
I don’t have Internet on my phone, I only use Facebook.
:)
The Power of FruitPlastic
In emerging market, the usage often driven by bottom of the pyramid
Dangdut vs iTunes
Overkill vs Functional
Embrace Local
Think Outside The Box
The Monetization ModelLooking into monetization potential in Indonesia
bundling commodity & value added
work with Telco/handset for quick
win
advertisingwill grow bigger in a
later stage
epayment & ecommerce
is coexist to grow together
Monetising Model
Digital AdvertisingMobile and Internet Advertising market potential
0
1
2
3
4
5
6
7
1 2 3 4 5 6 7 8
UKGermanyUSAJapanIndia
Percentage of Internet Ad Spend out of Total Spend
0.1%0.2 - 0.5%
0.5 - 0.8%
Adoption of Digital Advertising
Adoption is slow! In Year 3, percentage of Digital Ad Spend
<1%
informationdetik, kompas,
kapanlagi, vivanews, etc
search & portal
google, yahoo, etc
mobile channel
Telkomsel, Indosat, XL, etc
communityFacebook, Kaskus,
etc
Indonesia Estimated Digital Advertising Market(Internet + Mobile)
US $20-30 million
targeting/segmentation
reach to a specific target market
reachmaximum
exposure toreach
awareness
rich mediastimulate
interest forthe product &
servicesadvertised
engagementinteractivity to get
consumer insight &loyalty
consumercore target
market
Value for the Brand
Media Publisher
content & community
Brand
Media Aggregation
reach/segmentation
MediaReseller
price bundling/media mix/CRM
AdvertisingAgency
insight/marketing strategy
value proposition
Advertising Value Chain
Bundling Commodity & Value AddedValue added can be created in various ways to create an attraction factor to commodity products or services
Telkomsel51%
Indosat19%
XL18%
Hutch5%
Axis2%
Mobile 82%
Smart2%
Sampoerna TI1%
Flexi60%
Esia36%
Mobile-82%
Starone2%
Mobile Market Share in Indonesia
GSM Market Share
CDMA Market Share
Cellular45%
Data, Internet & Infotech26%
Fixed Line14%
Interconnection12%
Network2%
Others1%
Telkom Revenue Contribution
Fixed line will be declined and replaced by the growth in fixed broadband. Telco has every intention to grow its digital businesses.
total: 3-4 million users
almost 2 new million
users/quarter
Smartphone
mobile community
user profile & personalization
cheap call & sms
credit
chat & messenger
friends update & microblog
photo sharing
a complete ecosystem
+ =
Commodity Value Added Result
BroadbandContent
SubscriptionContentConnectivity
Commodity + Value Added
+ =
Commodity Value Added Result
Feature PhoneContentHandset
Commodity + Value Added
Bundling with Telco & Handset
By bundling value added service (content/community) with telco & handset will provide a quick win for Internet players.
Unless we have a strong value proposition such as Google, Twitter or Facebook, it’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.
Value Proposition
EpaymentEpayment provides the infrastructure for online transaction and ecommerce
• 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)
Credit card in Indonesia
ecommerce and epayment needs each other to become widely
adopted
Ecommerce & epayment Adoption
belibarang.com
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.