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

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. 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. 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. In Indonesia
Mobile
is even a much
BIGGER deal

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. 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. Indonesia is among the
HIGHEST in the world in
consuming mobile advertising
Estimated
over4 billions
ad impression served each month

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. Young Indonesians,
aged 8 - 24 years old
have the highest level of mobile
phone ownership in the region,
at 80%
penetration.

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. 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. 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.

14. Why Mobile is Big in Indonesia?
Infrastructure Price
Culture Choices

15. as tic
Pl
The Power of Fruit

16. 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.
:)

17. as tic
Pl
The Power of Fruit
In emerging market, the usage often driven by bottom of the pyramid

18. Dangdut vs iTunes

19. Overkill vs Functional

20. Embrace Local

21. Think Outside The Box

22. The Monetization Model
Looking into monetization potential in Indonesia

23. 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

24. Digital Advertising
Mobile and Internet Advertising market potential

25. 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

26. 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

27. 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

28. 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

29. Bundling Commodity &
Value Added
Value added can be created in various ways to
create an attraction factor to commodity
products or services

30. 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

31. 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.

32. Smartphone
almost 2
total: 3-4
new million
million
users/
users
quarter

33. a complete
ecosystem
cheap call &
sms
user profile &
credit
personalization
mobile
community
friends update chat &
& microblog messenger
photo
sharing

34. Commodity + Value Added
Commodity Value Added Result
+ =
Broadband
Connectivity Content Content
Subscription

35. Commodity + Value Added
Commodity Value Added Result
+ =
Handset Content Feature Phone

37. Bundling with Telco & Handset
By bundling value added service
(content/community) with telco & handset
will provide a quick win for Internet
players.

38. 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.

39. Epayment
Epayment provides the infrastructure for online
transaction and ecommerce

40. 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)

41. Ecommerce & epayment Adoption
belibarang.com
ecommerce and epayment needs each other to become widely
adopted

42. Case Study: Plasa.com

43. Reach a broader market by
Internet & mobile
plasa.com m.plasa.com

44. Provide digital content as well as
physical products
mobile plasa.com

45. 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.