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THE

FUTURE
OF TV 2022
The state of OTT in Indonesia
THE FUTURE OF TV VIDEO ENTERTAINMENT IN INDONESIA

Flexibility proving key in winning


Indonesian viewers

The greatest draw of OTT for Indonesian viewers is


flexibility. OTT has liberated viewers from fixed
programming schedules and from the living room,
enabling them to watch what they want, when they want
to, on any device, and from any location.

Voice of the Low barriers of access


consumer
“Video streaming services allow users to have full control in choosing what
program or video they want to watch. I think OTT will continue to be consumed
in Indonesia since it offers not only entertainment but also flexibility in terms of
business model and ease of use, and can be enjoyed anytime, anywhere. This
comfort and convenience makes it difficult for users to switch back to
conventional channels.”

Kantar Cultural Streetscaping 2


THE FUTURE OF TV OTT IN INDONESIA

OTT consumption has grown 40%


over the past year

Indonesians are watching more OTT, more often. In total,


viewers watch 3.5 billion hours of OTT each month
across the country.

41.4 hours
of OTT now consumed monthly
by the average viewer

The Trade Desk Future of TV Survey 2021 (Number of people using at least 1 OTT platform in P3M = 601),
(Number of OTT viewers who have watched traditional TV in P3M = 455), (Number of OTT viewers who
have watched YouTube in P3M = 537), (Number of OTT viewers who have used Social Media in P3M = 474) 3
THE FUTURE OF TV OTT IN INDONESIA

Nearly 1 in 3 Indonesians
now stream OTT

OTT penetration in Indonesia grew 25% year on year.

30% OTT penetration amongst all


consumers surveyed in Indonesia

83M OTT users in the market

The Trade Desk Future of TV Survey 2021 (Number of people using at least 1 OTT platform in P3M = 601) 4
THE FUTURE OF TV OTT IN INDONESIA

Women are leading


OTT viewers by gender
the shift to OTT

Indonesian women have embraced OTT. Indonesia


boasts the highest share of female viewers among any Heavy
Southeast Asian nation. Indonesian women are also more users: 65%

likely to be heavy users, consuming more than 4 hours of


OTT a day. 42%

58%

36% More OTT penetration amongst


Females than Males

Female
Male

The Trade Desk Future of TV Survey 2021 (Number of people using at least 1 OTT platform in P3M = 400) 5
THE FUTURE OF TV OTT IN INDONESIA

Gen Z and young Millennials are


driving OTT’s growth across
Indonesia

Younger viewers are also driving the growth of OTT.


52% of OTT users across Indonesia are Gen Zs or young OTT viewers by age group
Millennials between the ages of 16-34, the highest seen
in SEA.
10%
Heavy users:
23% 38%
What’s more, they’re not just early adopters: these
young audiences are more likely to be heavy users, 17%

consuming more than 4 hours per day of OTT content.

21% 29%

16 - 24 Years 25 - 34 Years 35 - 44 Years 45 - 54 Years 55 Years +


The Trade Desk Future of TV Survey 2021 (Number of people using at least 1 OTT platform in P3M = 601),
(Number of OTT viewers who have watched traditional TV in P3M = 455) 6
Indonesia

Content
THE FUTURE OF TV OTT IN INDONESIA

Viewers now turn Indonesians are increasingly turning to OTT for


their favorite shows. The gap between OTT and
to OTT for their traditional TV for watching favorite shows was
favorite shows – just 13% in 2020 but has expanded to 22% in
the last year.
not traditional TV
Among Gen Z, the gap is even higher at 27%,
highlighting a growing disconnect that
younger generations feel with traditional TV.

% selected ‘to watch my favourite shows’

16-24 years:
62% 35% Voice of the “OTT plays an important role for Indonesians as it helps to
consumer relieve the stress from work or study and getting through
40% the hardest lockdown ever. I think it will continue to play a
significant role in our lives as it offers affordable
entertainment where people can access it across devices
OTT Traditional TV
anytime, anywhere.

The Trade Desk Future of TV Survey 2021 (Number of people using at least 1 OTT platform in P3M = 601),
(Number of OTT viewers who have watched traditional TV in P3M = 455) 8
THE FUTURE OF TV OTT IN INDONESIA

Korean content dominates screens


while local content holds its own Top 5 content types, by origin (Top 2 rank)
57% 56%
Korean content has exploded in popularity over the past p15pp q9pp
year to become the most popular genre on OTT. It is
particularly popular among female viewers. 40%

The boom in popularity has come at the expense of


Western content, which dropped 9 percentage points in
popularity over the past year.
18%

11%

75%
Korean Western Local Japanese Chinese
of female viewers in Indonesia ranked
Korean content among their top 2
preferences (vs market avg of 57%)

The Trade Desk Future of TV Survey 2021 (Number of people using at least 1 OTT platform in P3M = 603) 9
THE FUTURE OF TV OTT IN INDONESIA

Indonesia’s top
genre on OTT:
Korean drama, known as K-drama, is now
Indonesia’s leading genre, driven by its top status
among female GenZ and young Millennial viewers
74% 61%
K-drama and among moms.
of female viewers of male viewers
list Korean- list live sports as
There’s a distinct split in preferences between male drama as one of one of their
and female viewers: male Gen Z viewers prefer their favorite favorite genres
comedy, action and Japanese anime, while young genres
male Millennials also prefer live sports.

Male Female Male Younger Female Younger


Moms
GenZ GenZ Millennials Millennials

1. Comedy 1. Korean Drama 1. Live Sports 1. Comedy 1. Korean Drama


2. Action 2. Comedy 2. Action 2. Action 2. Comedy
3. Japanese Anime 3. Romance 3. Comedy 3. Japanese Anime 3. News

The Trade Desk Future of TV Survey 2021 (Number of people using at least 1 OTT platform in P3M = 603) 10
Indonesia

Experience
THE FUTURE OF TV OTT IN INDONESIA

Indonesians use OTT to carve previous “me time”


out of long commutes and busy traffic

6% of OTT viewers in Indonesia live


alone

54% of OTT viewers mostly watch OTT


alone
Voice of the “Most people in Jakarta are glued to their phone during
consumer their long commute. Sometimes we could be stuck on the

94%
bus or train for hours, and best way to spend it is by
watching shows or playing games. When people get home,
of OTT viewers watch OTT alone showered and fresh, they also prefer to watch their
some of the time favourite content on TV alone.”

The Trade Desk Future of TV Survey 2021 (Number of people using at least 1 OTT platform in P3M = 400) 12
THE FUTURE OF TV OTT IN INDONESIA

Smart TVs are bringing OTT to the


biggest screen in the house

While smartphones remain king, Smart TV is claiming a


larger share of OTT viewing: 29% vs 23% one year
previously. In fact, more than 1 in 4 OTT viewers
purchased a smart TV in the past 6 months as affordable
Smart TV sets flood the market.

This trend will continue as OTT viewers continue to


upgrade to Smart TVs in the coming 18 months.

27% 55%
of OTT viewers have purchased of OTT viewers in Indonesia are
Smart TV in past 6 months1 extremely or very likely to purchase
Smart TV in the next 18 months2

1. The Trade Desk Future of TV Survey 2021 (Number of people using at least 1 OTT platform in P3M and have smart TV = 391)
2. The Trade Desk Future of TV Survey 2021 (Number of people using at least 1 OTT platform in P3M and don’t have smart TV = 212) 13
Indonesia

What Brands
Need to Know
THE FUTURE OF TV OTT IN INDONESIA

Ad-supported viewership is rising How viewers access OTT platforms


fast
61% of OTT viewers watch video content on ad-
8%
supported platforms, meaning advertisers can now reach
more than 50 million consumers across Indonesia by
advertising on OTT.

That represents 25% growth in viewers who use ad


supported platforms. 53% 39%

90% of Indonesian OTT viewers use more


than one OTT platform vs 82% last year
Ad-supported only Subscription-based Both

The Trade Desk Future of TV Survey 2021 (Number of people using at least 1 OTT platform in P3M = 601) 15
THE FUTURE OF TV OTT IN INDONESIA

Viewers increasingly open to


watching ads for free content

Among the 96% of OTT viewers who are open to seeing


ads, the vast majority are willing to watch 2 or more per
one-hour show.

42% 92%
of OTT viewers are willing to watch of OTT viewers are willing to watch
4 or more ads per hour of free 2 or more ads per hour of free
content content

The Trade Desk Future of TV Survey 2021 (Number of OTT viewers who are open to seeing an ad = 583) 16
27%
THE FUTURE OF TV OTT IN INDONESIA
of OTT viewers did not watch
traditional TV in the past 3 months
vs 17% in 2020
OTT has captured viewers who are
switching from traditional TV
% of viewers who watched less traditional TV and…
The number of Indonesians who no longer watch
traditional TV has increased 59% over the past year. The
majority (57%) are shifting to OTT.
Watched more OTT 57%

Well aware of this shift, traditional broadcasters are


investing heavily in OTT platforms.

Watched more YouTube 45%

Watched more Social


Media 33%

The Trade Desk Future of TV Survey 2021 (Number of people using at least 1 OTT platform in P3M = 601) 17
THE FUTURE OF TV OTT IN INDONESIA

62%
Premium OTT content drives high Does not multi-task while
levels of viewer engagement, positive watching content

advertising experience

61% Are not distracted when


watching content

70% Are not likely to skip or ignore ads

33% Feel more premium brands


advertise in OTT

The Trade Desk Future of TV Survey 2021 (Number of people using at least 1 OTT platform in P3M =
601), (Number of OTT viewers who have watched YouTube in P3M = 537) 18
THE FUTURE OF TV OTT IN INDONESIA

Brands are making inroads


with OTT advertising
Brand recall has improved significantly year on year.
Among viewers who use ad-supported platforms, 35%
recall the brand behind the last ad they saw, compared
to 23% the previous year.

58% of OTT viewers surveyed found ads to be relevant all


or most of the time, a significant jump compared to 45%
one year prior.

The Trade Desk Future of TV Survey 2021 (Number of OTT viewers who recall the last ad (n=323), v 19
KEY TAKEAWAYS

The implications for brands and marketers are huge

Follow Access Gen Z Ad-supported streaming OTT complements TV, Brands making inroads
the eyeballs and Millennial viewers is growing fast UGC with OTT

OTT consumption is up Gen Z and Millennials are Advertisers can reach The number of While OTT is a new
40% year on year, as leading the shift to OTT, more than 50 million Indonesians who no channel, brands are
Indonesians stream more motivated by the ability Indonesians on ad- longer watch traditional learning fast. OTT
each day and tune in to craft a personalized supported OTT platforms. TV has increased 59% viewers report higher
more often. viewing experience that over the past year. levels of brand recall
allows them to access These audiences are than they did a year ago.
The average OTT user their favorite shows on more receptive to ad- OTT is capturing the
now watches 41.4 hours demand. supported viewing than lion’s share of these Key personas, such as
per month. ever, willing to watch viewers. OTT offers Gen Z, Millennials, and
more ads for free content better engagement than moms are also
than they were one year both UGC and traditional increasingly likely to
ago. TV. make purchases after
seeing ads on OTT.
Advertisers should
consider including both
in their media plans to
maximize the impact of
their campaigns.

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KEY TAKEAWAYS

Work with The Trade Desk to make the most of the OTT opportunity

Access tools to reach more than 50 million Indonesian viewers using data-driven OTT buying.

Data-driven Measure real world Real-time frequency Premium inventory, Brand


buying results capping within one platform safety

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your media buys — measuring and decide when, where, and top local and regional without the need for
including interests, attributing in-store visits how often your ads OTT platforms. Activate third-party tools to
demographics, and online and offline appear — in real time and manage all your OTT manage and track.
contextual, content, sales to ads on OTT. Or, down to the minute, hour, deals within one
geography, and take advantage of high day, or week. platform.
more. Using our AI viewability and
engine, Koa™, completion rates to build
automatically optimize and track brand
your campaigns toward awareness.
your most valuable
viewers.

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Indonesia
Top personas on OTT
• Gen Z
• Millennials
• Moms
TAKING CONTROL MY PASSIONS

• For Gen Z viewers, OTT is all about taking • Gen Z viewers in Indonesia love K-drama,
control to shape their own viewing especially female viewers. Both male and
experience: they’re far more likely to watch female users also enjoy comedy and have an
alone (33% vs 19% overall) increased preference for romance and other
• Gen Z are highly mobile: they claim the drama.

highest share of smartphone viewing, and


they’re also less likely to say they plan to
HIGHLY AMENABLE TO ADS
switch over to watching on Smart TV, though
40% are open to spending a little more time
on Smart TV. • Gen Z are more likely than other cohorts to
say they’re less easily distracted when
• More than 50% of Gen Z reflect that their watching content on OTT platforms.
households have existing broadband plans,
but are less likely to have upgraded to
GEN Z broadband in the past year.
16-24 years old EMBRACING THE VALUE EXCHANGE:
ADS FOR FREE CONTENT
Gen Z OTT viewers in Indonesia are voracious MY CONTENT ON MY TIME
consumers.
• The average Gen Z viewer watches nearly 2 • More than half of Gen Z viewers in Indonesia
are willing to watch 3 or more ads on OTT
Their viewing is also more individualistic – hours of OTT a day – slightly higher than the
platforms
they’re more likely to tune in solo, via national average.
smartphone.
• Gen Z love OTT for the ability to watch their
With less disposable income in hand, Gen Z shows. They are also more likely to say that
viewers are choosy about which subscriptions they watch OTT to watch content they want
they pay for – meaning they’re most likely to instead of what family is watching.
seek out ad-supported OTT platforms. • With more flexible schedules, Gen Z is more
likely to be found catching up on their
Top Gen Z genres are K-Drama and also favourite shows during the afternoon and late
comedy. night.
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KEEN TO UPGRADE THEMSELVES MY PASSIONS

• Younger Millennials are still mobile, but are • Young Millennials are hooked on the K-
more likely to switch to Smart TV when Drama wave.
watching content at home.
• They also report a preference for animation
• Younger Millennials have also shifted faster and horror.
towards OTT viewing and away from
traditional TV.

HIGHLY RECEPTIVE TO ADS

CONTENT ANYWHERE • Young Millennials tend to multi-task less


when watching content on OTT platforms.
• The average Young Millennial viewer They also report the lowest likelihood to skip
ads in OTT platform than overall market.
watches 1.7 hours of OTT a day.
(21% vs 30% overall)
YOUNGER MILLENNIALS
25-34 years old • They prefer OTT for the ability to watch the • They claim to recall brands easily after
show or content they want at their own time
(63% vs 56% overall) and to watch outside of watching ads on OTT platform (44% vs 41%
Mobile savvy, they’re upgrading their home TV overall) than national average.
experience to Smart TV, enabling them to cut the home (43% vs 36% overall).
the cord with traditional TV at greater rates than • They are more likely than average to watch • Young Millennials are more likely to report a
the general population. during the early morning, potentially during “halo effect” linking premium OTT content
their commute before work, as well as during with premium brands: they’re significantly
They like the flexibility and convenience which the evening. more likely to say premium brands will
OTT provides - and especially the ability to advertise on this platform (46% vs 34%
watch outside of home • Young Millennials are more likely to move overall)
seamlessly between solo and social viewing.
They find OTT highly engaging, and it shows:
young Millennials boast higher brand recall and
intention to purchase after seeing ads on OTT
than other cohorts.

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MOMENTUM SHIFT ADVERTISER’S DELIGHT

• Moms are more likely to have upgraded their • Moms are highly engaged while watching
broadband plan in past 12 months (44% vs OTT, multi-tasking less while watching OTT
33% overall) compared to the average population.

• This reflects in a shift in viewership, as 64% of • Moms can recall brands more easily than
Moms report watching less traditional TV and average after watching ads on OTT platforms.
more OTT in past 12 months (vs a market They’re also 37% more likely to purchase
average of 57%). products after watching ads on OTT than the
market average.

• Moms also report finding ads less intrusive


than other cohorts, and they’re also less likely
MORE FREQUENT AND MORE DURATION to skip ads. Moms have higher recall of last
ad they saw in OTT platform, for both brand
• Moms love OTT platforms for the ability to recall (41% vs 35% overall) and product
recall (38% vs 29%)
MOMS enjoy content together with family and
Females with children friends.
• Moms were much more likely to say that OTT
in household <16 years • Moms are also more likely to be found ads are relevant most of the time (48% vs
32% overall)
consuming OTT content throughout the day:
Moms in Indonesia are passionate OTT fans who they typically don’t watch late at night.
are switching away from traditional TV in higher
numbers than other groups.

Ads leave a memorable imprint on mums, who MY PASSIONS - DRAMAS & REALITY TV
report higher recall and say the ads they’ve seen
on OTT are more relevant vs other cohorts.
Mothers in Singapore are less likely to skip ads
• Moms love to watch drama, comedy and,
uniquely, news. Within drama, K-Drama is
and less likely to say ads on OTT intrusive. All leading the way: 78% of moms tune in.
these make this group a key target for brands.

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About The Trade Desk and Kantar
The Trade Desk helps brands and their agencies advertise to
audiences across millions of ad-supported apps, websites,
and streaming providers — all around the world. Their media
buying platform is focused solely on the buy side, empowering
advertisers with data, transparency, and precision to reach
and grow their audience everywhere. And helping to power
the content that fuels the free and open internet.

Kantar is the world’s leading marketing data, insight, and consultancy


company. Part of WPP, the company’s services are employed by over
half of the Fortune 500 companies in 100 countries. Their global
team of consultants blend people expertise and industry experience
to build solutions that help drive incremental growth for our clients.
This document is developed in partnership with the Consulting
Division, located in Singapore.

For more information, contact us at info@thetradedesk.com


Methodology
This report was commissioned by The Trade Desk
and carried out by the market research company,
Kantar. Kantar conducted a survey among 6,700
consumers, ages 16+ in the Philippines, Singapore,
Malaysia, Vietnam, Thailand, and Indonesia in
November 2021.

For more information, contact us at info@thetradedesk.com

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