Digital indonesia

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Digital Planet Indonesia

Transcript of Digital indonesia

Page 1: Digital indonesia

Digital Planet Indonesia

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Something, somewhere went terribly wrong.

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the facts (sort of)

Population 237,512,355

17500 islands

Per Capita Income US$1,280

Per Capita GDP US$1,925

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who uses what

Only 2% of Indonesians own a fixed phone line service

8.5 million personal computers

80 million mobile phone users (34% of pop.)

25 million internet users (10.5% of pop.)

241,000 broadband internet connections

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Ranked 5th in region!

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where we go on the web

Top local sites visited:detiksport, detiknews, kaskus, kompas

Top global sites visited:yahoo, friendster, msn, google, youtube, myspace, facebook,

Basically we’re just huge girly gossips. We use the internet like a fancy phone to socialise, share photos, gossip, track celebs, make friends and keep in touch with…news and er…gossip.

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The #1 site alone generated over half of those!

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Indosat Yahoo! Go generates 60% of Yahoo! Traffic in South East Asia

Indonesia60%

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High-end

Medium

Low-end

Internet user demographics

5%

35%

60%

Businessman

High school student

Information,email

Internet surfer,Instant Messenger

Mobile cosmetics download

College student,First jobber

Source: Indosat 2008

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Blackberry® On-Demand &

BB BOLD Introduced

Blackberry enjoys 250% growth. A new generation of mobile zombies is created.

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Indosat 3.5G broadband achieves 600% annual growth. Still sucks.

Broadband Unlimited

Introduced

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where we get online

52% access internet at a WARNET 32% at the workplace 28% at school or campus 9% at a friend’s place 6% at home

(yeah, we know…127%…some use more than one place)

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Over 60% of mobile users access the web in warnets & internet cafés.

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We do the same mobile stuff you do We send more SMS than anywhere else on the planet We download songs, games and ringtones. We play games. Online, on phones and handhelds. We get online with our 3G phone…but mainly social networks We buy prepaid cards far more than we subscribe We switch networks more frequently because we use prepaid cards We change our phone on average once a year We buy Nokia (40%), Sony Ericsson, Motorola, Samsung, LG phones We all really want a new Blackberry (annual sales up 250%) We pay more for mobile services than most of our neighbors

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e-commerce. Do we buy stuff online? We’re window shoppers, browsers We check out brands and keep up with trends and fashions

Less than 10% of internet users are willing to buy online.

Why not? The reasons are complex…

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e-commerce. Do we buy stuff online? We’re a marketplace culture. We like to touch, feel and sniff the

things we buy. And take it with us without waiting for delivery. We often don’t have a credit card. If we do, overseas vendors often

won’t accept it. Indonesia and Russia share honors for highest cc fraud.

There is a language barrier with overseas sites too. I can’t trust what I don’t understand.

Local e-commerce sites are few and often poorly maintained or dysfunctional. Usually they’re basic websites of bricks and mortar stores rather than true e-commerce operations (no payment facilities, etc.).

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e-commerce. Do we buy stuff online? But all those limitations aside, e-commerce in Indonesia will continue to grow and gain sophistication.

As cultural, economic and logistical barriers reduce, Indonesia has the potential to be one of the top 5 e-commerce markets in Asia.

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How else do we use the internet?Opening up new markets for Indonesian businesses.

Online companies such as Global Sources allow even small Indonesian businesses to reach new markets and customers, nationally and globally.

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How else do we use the internet?Simplifying and cleaning up Indonesia’s beaurocracy

The gradual increase in provision of online government facilities allows more Indonesians to perform online what were previously slow, complex, inconvenient and corruption-riddled processes (eg: customs and excise).

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Our digital creative services marketThe realities, potentials and opportunities

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Selling digital expertise

It’s a market populated by small digital specialists whose business model is the digital equivalent of the street vendor. They sell their services direct to clients rather than work in collaboration with agencies.

Many are hit-&-run operators. They come and go. They’re unreliable. They’re stupid-cheap and their work often doesn’t work.

But there are also good, established digital shops with solid reputations.

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Selling digital expertise

Many clients just want a quick, cheap website so they can say they’re ‘online.’ The site never changes from year to year. An e-brochure.

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Selling digital expertise

Because they are seldom given metrics to judge value or quantify their digital content, they are unwilling to pay a decent price for it.

Even when they do invest, they seldom realise that their online presence requires constant renewal and investment to remain useful and relevant.

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Selling digital expertise

Client buying habits Again, our marketplace culture come into play. “just

as they buy eggs from one vendor and meat from another, the digital client buys his digital services from a specialist. Then he buys ATL from another, BTL from another and media from yet another.

Very seldom would they prefer to deal with a fully integrated ATL/BTL/DIGITAL/MEDIA ‘supermarket.’

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Selling digital expertise

Client buying habits

Even when they do place their ATL and BTL business with one agency that does offer integrated digital capabilities, they often still elect to go with a different shop for digital.

The result can be remote islands of thought and a campaign that doesn’t leverage the benefits of integration across media — unless the client does a lot of coordination themselves to push all the elements into line.

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Selling digital expertise

Duh! Why not use one expert with an integrated approach? They’ll all tell you that specialists provide better

expertise than jack-of-all-trades shops. To some extent they’re right. Many agencies say they do digital but in reality the investment in in-house expertise is minimal.

There is, of course, an unspoken reason why the client chooses to make his life more complicated by working with multiple ‘experts.’ He can make more money in kickbacks from four vendors than he can with one.

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The potential of mobile internet Mobile internet is one medium that aligns beautifully with Indonesia’s sociable online usage habits. We’re already on the cellphone all day anyway, so facebook, twitter and blogs on our Blackberries is a no-brainer.

(BTW: Indonesians also hold the world record for daily SMS traffic.)

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Mo user demographicsDo we view mobile ads?

Apparently yes. The following stats are from mobile social network BuzzCity, using data from its myGamma Global Mobile Advertising Index:

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Mo user demographicsDo we view mobile ads?Advertising page views in the 1Q 2008 1. Indonesia: 654 million (up 13328% on Q1 2007) 2. India: 577 million (up 1522%) 3. South Africa: 426 million (up 418%) 4. USA: 132 million (up 917%) 5. Kenya: 79 million (up 424%) 6. Romania: 57 million (up 446%) 7. Bangladesh: 53 million (up 305%) 8. China: 37 million (up 6053%) 9. Brunei: 35 million (up 221%)

10. Pakistan: 35 million (up 814%)

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The potential of mobile internet The question would be how can advertisers best make use of that synergy in a friendly, familiar and engagingly conversational way rather than simply pushing commercial messages where they’re unwelcome?

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So what’s next?

Potential is there. Real growth opportunities exist.

We’re talking to a very small cross-section of the population, but they have all the spending power.

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So what’s next?

Computer ownership and teledensity are still very low, and most networks underdeliver with patchy coverage and low bandwidth.

Tariffs are still relatively expensive for a developing country.

Growth is limited only by infrastructure, availability, relevance and consumer spending power.

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So what’s next?

The rapid emergence of the mobile internet is a perfect match to our usage habits.

The social, gossipy nature of Indonesians is perfectly suited to today’s social networking boom.

Campaigns that leverage mobile communications media have greatest potential if done right.

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So what’s next?

Language remains a barrier for many online but presents a huge opportunity for Indonesian language sites and initiatives to connect with Indonesian user bases.

Credit/payment issues remain a real barrier to e-commerce, even locally. This may gradually improve.

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Terimah Kasih

Thank You