Source : Indonesia Finance Today | View Original
JAKARTA (IFT) – Affle Indonesia, global media company based on Singapore, this year focuses at developing its business in Indonesia with targeted growth of 500 percent from last year.
Anuj Kumar, Chief Executive Officer of Affle Indonesia, said that Indonesia and India are Affle’s potential markets. In 2011, company’s business grew 100 percent from 2010 supported by mobile advertising business. The business contributed 80 percent of total company’s revenues in 2011.
“This year, we will strengthen mobile product especially for messaging such as Pinch App and SMS2.0. We also strengthen mobile advertising and digital advertising solution thru new products marketed by August this year,” said Kumar to IFT.
With such strategy, Kumar targets the company’s income contribution from Indonesia to grow 30 percent to 35 percent this year from 10 percent last year.
Affle’s research stated that digital advertising market in Indonesia has a potential to grow below 10 percent along with growing global companies putting in their money in Indonesia. In India, digital advertising contributes 10 percent of total advertising income last year while in Indonesia less than five percent.
Affle estimates advertising market in Indonesia to reach US$ 7 million in 2011 while in India to reach US$ 10 billion. The company plans to invest 35 percent of company’s capex this year to develop the market in Indonesia.
Digital Advertising Market
PT Nielsen Indonesia recorded digital advertising portion by only seven percent or about Rp 4 trillion to Rp 5 trillion of total national advertising expenses. In third quarter of 2011, total national advertising expenses reached Rp 68.47 trillion.
Irfan Ramli, Chairman of Indonesian Advertising Agency Association (Persatuan Perusahaan Periklanan Indonesia/PPPI) of Jakarta Province, said that online advertising growth will be significant in the next five years.
Based on PPPI’s data, in 2010 online advertising market share only posted 1.5 percent or Rp 726 billion from total national advertising expenses that reached Rp 48 trillion. (*)