Korean and local premium content is fueling growth of the open internet.
Jakarta, 29 March 2023 – New data from research report, Gateway to the Open Internet, released by global advertising technology leader The Trade Desk (Nasdaq: TTD) and Kantar estimates that over 190 million Indonesians are turning to the open internet for entertainment, news and general information. The open internet comprises channels such as over-the-top (OTT) and connected TV (CTV), music streaming, news and general websites, and online gaming. The research indicates that digitally savvy Indonesians are increasingly shifting their media habits toward professionally-produced, premium content on channels such as OTT/CTV and music streaming versus user-generated (UGC) content platforms.
“The open internet presents an opportunity to marketers looking for an alternative to user-generated content platforms,” said Purnomo Kristanto, General Manager, Indonesia, The Trade Desk. “It’s an alternative that has scale, precision, value, and where brands can get objective data-driven measurement for their ad campaigns.”
Korean and local premium content fuelling the growth of OTT
Streaming on OTT platforms has become the mainstream form of entertainment where people access their favourite shows across devices anytime, anywhere. As Indonesians turn to OTT for professionally-produced, premium content, OTT is emerging as one of the fastest-growing channels on the open internet. Data shows that 25 percent of Indonesians expect their usage on OTT/CTV to increase significantly in the next six months.
The K-wave leads viewers’ preference on OTT as three in five Indonesians cite K-drama and K-pop as their top two favorite content genres. Of those who consume Korean content, OTT/CTV is utilized close to 3X more when compared to UGC platforms. And amongst the open internet channels, OTT/CTV is where Indonesians follow and watch local celebrity and influencer content.
The research affirms that young audiences such as Gen Zers (aged 16 to 24) and younger millennials (aged 25 to 34) rely on OTT to deliver on premium content more than other generations. Such age groups are among the most coveted by advertisers because they are at a stage in life where they are starting to build long-term brand loyalties, and they tend to be trendsetters for all age groups.
OTT and music streaming opens up opportunities for advertisers
As consumer appetite for Korean and local premium content continue to grow, OTT and music streaming are emerging as an effective advertising channels for marketers. In fact, women listen to ad-supported music steaming platforms more than men. The research also shows that Indonesians are not only more receptive to ads on such premium channels, they also perceive brands that advertise on OTT as trustworthy. Sixty-seven percent of Indonesians are more likely to trust brands that advertise on OTT/CTV, compared to UGC platforms.
The data also highlights that users are more likely to multitask and are less receptive to ads when they are on social media. In fact, Indonesians are 17 percent more likely to skip ads on UGC platforms, compared to ads on OTT. On the other hand, premium content environments are driving stronger brand recall, particularly with women as they are 16 percent more likely to recall brands that advertise on these channels, as compared to UGC platforms.
“While UGC platforms such as social media may have broad reach, the study shows that Indonesians on these platforms are less engaged. This new research highlights that the open internet garners better ad attention amongst Indonesians, enabling reach with better impact,” said Purnomo Kristanto, General Manager, Indonesia, The Trade Desk. “Demonstrating the value of the open internet enables The Trade Desk to partner with brands to reach the right audiences, while giving marketers new levels of precision to improve campaign effectiveness,” he added.
The research further reveals that Indonesians were more likely to recall the entire ad – including the brand and product/service advertised – on the open internet’s channels such as OTT/CTV, music streaming, and online games. Consumers on UGC platforms, on the other hand, were more likely to recall either only the brand or product/service advertised.