Study: 67% of Indonesians more likely to trust brands advertising on OTT

Indonesia's rising digital media usage is set to be let by the open Internet. Particularly, news/websites, over the top (OTT) and connected TV (CTV), music/audio streaming and online gaming, according to a new study. As a result, more Indonesians are trusting brands that opt to advertise on OTT services, according to the study.

The study reported that in the last year, seven in 10 Indonesians increased their open Internet consumption while two in three Indonesians are expected to increase time spent on open internet channels in the next six months.

The survey, which was conducted by global advertising technology leader The Trade Desk and Kantar, added that Indonesia is often times referred to as the social media capital of the world and that the data shows why. In fact, out of the 283 hours the average Indonesian consumer spends on digital media in a month, 55% of that was spent on the open internet.

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The study highlights a shift away from social media, user-generated content platforms and live game streaming towards channels on the open internet. This will be led by channels such as news/websites, OTT/CTV and music/audio streaming websites. 

“Many may not realize that the amazing online content they’ve come to enjoy is part of the open internet. Today’s consumers are spending more quality time on the open internet. This first-to-market research identifies exciting opportunities for marketers who are looking to advertise beyond social media, and on open internet channels where their target audience are more engaged,” noted Purnomo Kristanto, the general manager of The Trade Desk Indonesia. 

Saying that, digitally savvy Indonesians have also increasingly become more selective about the quality of content they consume with premium content and credible content coming out as the top drivers that influence the choice of content that they consume. 

The research also indicated that the open internet is where consumers find such content, the study reported. 

With a focus on premium content and credibility, brands in Indonesia have had to step up the way they advertise and when comparing a premium-content environment with user-generated content platform, Indonesians were 67% more likely to trust brands that advertise on OTT. ​

"Even though Indonesians are spending more than half of their time on the open internet, digital advertising has yet to catch up. In fact, digital ad spend outside of the open internet ecosystem is at least three times higher than the open internet," said Mas Gemi, the SMO of Kompas Gramedia Group and chairman of Indonesia Digital Association. She added that the insights will deepen understanding of the open internet and importantly, help both marketers and publishers to realise the value of the open internet.

The study added that before lunch and after work were the two periods where usage of the open internet was higher than on social media and user-generated content platforms. 'Usage of the open internet peaked when Indonesians catch up on news/websites as part of their long commute to work. As a result, between 6am to 1pm, activity on news/websites exceeded the average media channel by 35%," noted the study.

It concluded by noting that evenings were the prime time for OTT viewing.

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