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Monetizing the Indonesian
Internet and Mobile Market




Andy Zain            Andi S. Boediman
MobileMonday         Plasa....
Mobile is BIG


                                                                      67%
                                ...
Mobile is BIG


                                                                                          4x
             ...
In Indonesia
    Mobile
  is even a much

BIGGER deal
There will be estimated

            210 millions
                   mobile phone
                subscribers by end of
  ...
80%                 of new phones
            sold in Indonesia are Internet
                       enabled.

            ...
Indonesia is among the
   HIGHEST in the world in
 consuming mobile advertising

          Estimated

     over4 billions
...
Indonesia ranks among           700


     the HIGHEST in the
                                   525
  world for mobile br...
Young Indonesians,
    aged 8 - 24 years old
have the highest level of mobile
phone ownership in the region,

        at  ...
Internet Users in Indonesia
             80

                                                            In less than
    ...
What So Big Deal About Indonesia?

 The 4th largest country in the world
 (240M population).
 The 5th largest Internet mar...
What So Big Deal About Indonesia?

        Facebook :
        3rd largest market worldwide
        (24M users)

        Op...
Why Mobile is Big in Indonesia?

 Infrastructure                    Price




Culture                           Choices
as tic
             Pl
The Power of Fruit
as tic
                                             Pl
The Power of Fruit
In emerging market, the usage often driven by bo...
as tic
                                  Pl
The Power of Fruit
In emerging market, the usage often driven by bottom of the...
Dangdut vs iTunes
Overkill vs Functional
Embrace Local
Think Outside The Box
The Monetization Model
Looking into monetization potential in Indonesia
Monetising Model

                        bundling
                     commodity &
                      value added
    ...
Digital Advertising
Mobile and Internet Advertising market potential
Adoption of Digital Advertising
Percentage of Internet Ad Spend out of Total Spend

7

6                Adoption is slow! ...
Indonesia Estimated Digital Advertising Market
(Internet + Mobile)
  US $20-30                    information
            ...
Value for
the Brand                     targeting/
                            segmentation
                          reac...
Advertising Value Chain


                              Brand




   Media         Media                   Media          ...
Bundling Commodity &
Value Added
Value added can be created in various ways to
create an attraction factor to commodity
pr...
Mobile Market Share in Indonesia
                                                       Starone
                          ...
Telkom Revenue Contribution
                                         Others
                                          1%
 ...
Smartphone




                    almost 2
      total: 3-4
                   new million
       million
               ...
a complete
             ecosystem


                   cheap call &
                      sms


 user profile &
           ...
Commodity + Value Added

   Commodity          Value Added          Result




                  +                 =

    ...
Commodity + Value Added

   Commodity       Value Added          Result




               +                 =

    Handse...
Bundling with Telco & Handset


By bundling value added service
(content/community) with telco & handset
will provide a qu...
Value Proposition

Unless we have a strong value
proposition such as Google, Twitter or
Facebook, it’s easier to work on a...
Epayment
Epayment provides the infrastructure for online
transaction and ecommerce
Credit card in Indonesia
                  •   Total credit card from 20 banks: 11.5
                      million in 2008...
Ecommerce & epayment Adoption




                                     belibarang.com


ecommerce and epayment needs each ...
Case Study: Plasa.com
Reach a broader market by
Internet & mobile
      plasa.com       m.plasa.com
Provide digital content as well as
physical products
         mobile plasa.com
Key Takeaway

Work both on quick win monetization by
bundling them with the telco/handset as
well as long term branding on...
Monetizing indonesia internet & Mobile
Monetizing indonesia internet & Mobile
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Monetizing indonesia internet & Mobile

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Presented at Echelon 2010 by Andy Zain & Andi S. Boediman

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Transcript of "Monetizing indonesia internet & Mobile"

  1. 1. Monetizing the Indonesian Internet and Mobile Market Andy Zain Andi S. Boediman MobileMonday Plasa.com @andyzain @andisboediman andyzain@gmail.com andisboediman@gmail.com
  2. 2. Mobile is BIG 67% of the world population is on mobile Source : Tomi Ahonen (Nov 10, 2009) http://communities-dominate.blogs.com/brands/2009/11/the-digital-divide-in-numbers.html
  3. 3. Mobile is BIG 4x PC ownership Car 3x PC TV TV ownership Radio Mobile Phone Source : Tomi Ahonen (Nov 10, 2009) http://communities-dominate.blogs.com/brands/2009/11/the-digital-divide-in-numbers.html
  4. 4. In Indonesia Mobile is even a much BIGGER deal
  5. 5. There will be estimated 210 millions mobile phone subscribers by end of 2009 (5 times Internet users) Internet Mobile Source : BMI Report 2009
  6. 6. 80% of new phones sold in Indonesia are Internet enabled. There are more than 10 millions 3G users in Indonesia. (5 times broadband users) Source : BMI Report 2009, inMobi
  7. 7. Indonesia is among the HIGHEST in the world in consuming mobile advertising Estimated over4 billions ad impression served each month
  8. 8. Indonesia ranks among 700 the HIGHEST in the 525 world for mobile browsing intensity 350 661 pages 175 per month/person Vietnam UK USA China South Africa Russia Indonesia Source : Opera, September 2009
  9. 9. Young Indonesians, aged 8 - 24 years old have the highest level of mobile phone ownership in the region, at 80% penetration.
  10. 10. Internet Users in Indonesia 80 In less than 60 5 years, half in million 40 20 of Indonesian population will use Internet from mobile access. 2006 2007 2008 2009 2010 2011 2012 2013 Internet Users Mobile Internet
  11. 11. What So Big Deal About Indonesia? The 4th largest country in the world (240M population). The 5th largest Internet market in Asia (after China, Japan, India and S.Korea). 150M mobile phone users.
  12. 12. What So Big Deal About Indonesia? Facebook : 3rd largest market worldwide (24M users) Opera Mini : 2nd largest market worldwide (after Russia) Twitter : #1 market for Asia.
  13. 13. Why Mobile is Big in Indonesia? Infrastructure Price Culture Choices
  14. 14. as tic Pl The Power of Fruit
  15. 15. as tic Pl The Power of Fruit In emerging market, the usage often driven by bottom of the pyramid I don’t have Internet on my phone, I only use Facebook. :)
  16. 16. as tic Pl The Power of Fruit In emerging market, the usage often driven by bottom of the pyramid
  17. 17. Dangdut vs iTunes
  18. 18. Overkill vs Functional
  19. 19. Embrace Local
  20. 20. Think Outside The Box
  21. 21. The Monetization Model Looking into monetization potential in Indonesia
  22. 22. Monetising Model bundling commodity & value added work with Telco/ handset for quick win advertising epayment & will grow bigger in a ecommerce later stage is coexist to grow together
  23. 23. Digital Advertising Mobile and Internet Advertising market potential
  24. 24. Adoption of Digital Advertising Percentage of Internet Ad Spend out of Total Spend 7 6 Adoption is slow! UK In Year 3, percentage Germany 5 of Digital Ad Spend USA <1% Japan 4 India 3 0.5 - 0.2 - 0.8% 2 0.1% 0.5% 1 0 1 2 3 4 5 6 7 8
  25. 25. Indonesia Estimated Digital Advertising Market (Internet + Mobile) US $20-30 information detik, kompas, million kapanlagi, vivanews, etc search & mobile portal channel google, yahoo, etc Telkomsel, Indosat, XL, etc community Facebook, Kaskus, etc
  26. 26. Value for the Brand targeting/ segmentation reach to a specific target market reach rich media maximum consumer stimulate exposure to core target interest for reach market the product & awareness services advertised engagement interactivity to get consumer insight & loyalty
  27. 27. Advertising Value Chain Brand Media Media Media Advertising Publisher Aggregation Reseller Agency content & reach/ price bundling/ insight/marketing community segmentation media mix/CRM strategy value proposition
  28. 28. Bundling Commodity & Value Added Value added can be created in various ways to create an attraction factor to commodity products or services
  29. 29. Mobile Market Share in Indonesia Starone 2% Mobile-8 2% Sampoerna TI Smart1% Mobile 82% 2% Esia Axis 36% Hutch 2% 5% Flexi 60% XL 18% Telkomsel CDMA Market Share 51% Indosat 19% GSM Market Share
  30. 30. Telkom Revenue Contribution Others 1% Network 2% Interconnection 12% Fixed Line 14% Cellular 45% Data, Internet & Infotech 26% Fixed line will be declined and replaced by the growth in fixed broadband. Telco has every intention to grow its digital businesses.
  31. 31. Smartphone almost 2 total: 3-4 new million million users/ users quarter
  32. 32. a complete ecosystem cheap call & sms user profile & credit personalization mobile community friends update chat & & microblog messenger photo sharing
  33. 33. Commodity + Value Added Commodity Value Added Result + = Broadband Connectivity Content Content Subscription
  34. 34. Commodity + Value Added Commodity Value Added Result + = Handset Content Feature Phone
  35. 35. Bundling with Telco & Handset By bundling value added service (content/community) with telco & handset will provide a quick win for Internet players.
  36. 36. Value Proposition Unless we have a strong value proposition such as Google, Twitter or Facebook, it’s easier to work on a short term exclusive deal with Telco and handset in order for them to have the benefit to promote your content/ community/platform.
  37. 37. Epayment Epayment provides the infrastructure for online transaction and ecommerce
  38. 38. Credit card in Indonesia • Total credit card from 20 banks: 11.5 million in 2008 • 45% growth in credit card transactions from 2007 to 2008 • USD 10 billion in credit card transactions in 2008 • Major credit card issuers typically set aside 0.5% funding to be awarded to customers as points • It is estimated that USD 27 million is set aside for redemption in 2008 (50% of issuers)
  39. 39. Ecommerce & epayment Adoption belibarang.com ecommerce and epayment needs each other to become widely adopted
  40. 40. Case Study: Plasa.com
  41. 41. Reach a broader market by Internet & mobile plasa.com m.plasa.com
  42. 42. Provide digital content as well as physical products mobile plasa.com
  43. 43. Key Takeaway Work both on quick win monetization by bundling them with the telco/handset as well as long term branding on the Internet for advertising monetization model. Ecommerce & epayment is shaping its way to offer future monetization model.
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