Are you thinking of expanding your business to Indonesia? With its booming economy and large population, it's definitely worth considering! And to make your brand stand out in the age of social media, you'll want to take advantage of influencer marketing. In Indonesia, this advertising strategy has become a game-changer for reaching and engaging with consumers.
In this blog post, we'll take a deep dive into the world of influencer marketing in Indonesia, covering everything from knowing the perfect platforms for your brand to identifying the right influencers. These things are important to note in order to make a successful influencer marketing campaign.
Whether you're new to influencer marketing or looking to improve your current efforts, this article has everything you need to know to succeed in this exciting and growing market.
5 Important Things About Indonesia Influencer Marketing ⬇️
#1: Why it Works
Why Indonesians Trust Influencers
If you're looking to break into the Indonesian market, it's important to understand the consumer behavior of the people in the region. One key takeaway is that Indonesian consumers prefer genuine, authentic experiences over polished advertising. That's why influencer marketing is such a powerful tool in this market.
In fact, a 2020 study found that 62% of Indonesian online consumers are influenced by an influencer's recommendation before making a purchase. They're influenced by two main sources, influencers and their family and friends. Most of the influence comes from seeing a product recommended by many influencers over a short period of time.
On top of that, 25% of Indonesian consumers prefer following influencers on social media over brands' business accounts. 30% find influencer content to be more relatable and, while 23% trust the honest reviews of products.
Take a look at the video above where influencer Jessica Jane compared to hair irons. Jessica Jane bought two different hair tools, one at 8,500,000 Indonesian Rupiah, and the other at only 600,000. Jessica bought these two irons in order to inform her followers whether or not there’s a difference between their functionalities. Commenters found the video very useful and practical, as well as honest and helpful for their purchase decisions. These are the kinds you wouldn’t get from hard-sell advertisements.
So, to sum up, Indonesian consumers are more likely to trust recommendations from influencers rather than ads, which makes influencer marketing a powerful strategy in the country.
#2: Where to Begin
The Best Platforms for Your Campaign in Indonesia
If you're not already leveraging social media to connect with your audience in Indonesia, you're missing out on a massive opportunity! Indonesians are tech-savvy and love their social media. Platforms like WhatsApp, Instagram, Facebook, TikTok, and Telegram are where you'll find them hanging out in 2022.
But when it comes to influencer marketing, Instagram is still the king of the platforms. Brands in Indonesia trust Instagram to spend most of their influencer marketing budget on it, with 74% of brands in Indonesia choosing Instagram as the platform they spend most of their influencer marketing budget on in 2021. Instagram has always been strong in Indonesia, and that trend is likely to continue.
However, TikTok is also gaining popularity in Indonesia. In fact, TikTok has over 109 million Indonesian users, and the number of brands investing in TikTok is slowly climbing up. But be aware that, while it's easy to go viral on TikTok in Indonesia, especially for beauty products, the platform is not as result-driven as Instagram yet. Brands still don’t get as many results as running campaigns on Instagram.
So, if you're looking to expand your brand in Indonesia, Instagram is still the best bet for powerful influencer marketing results. But keep an eye on TikTok, because as the platform gains more popularity, it may become a more viable option for brands in the future.
#3: What to Make
Most Popular Content Types by Indonesian Influencers
The Indonesian market is brimming with potential, but to succeed here, you need to know what makes the locals tick. That's why understanding the types of content that resonate with your audience is crucial. When it comes to influencer marketing, three categories reign supreme: Fashion & Beauty, Entertainment, and Food & Drink. By tailoring your content to fit these niches, you can make a big impact in Indonesia.
Fashion & Beauty: Influencers in this category create various types of content, like makeup/skincare tutorials, product reviews, and mix-and-match daily outfits. They're highly influential in this country, and the platform of choice for them is Instagram at 36%, followed by Facebook at 34%.
Entertainment: Influencers in this category produce content like stand-up comedy, and the platform of choice for them is YouTube at 46%, followed by Instagram at 26%.
Food & Drink: Influencers in this category create food and drink discovery content, and the platform of choice for them is Facebook at 46%, followed by Instagram at 35%.
As a brand, you have to understand where your target audience is and what types of content they're consuming. By aligning your influencer strategy with the content that resonates with your audience, you can increase the chances of success. It's not about being on every platform, it's about being on the right platform at the right time with the right message. And the data shows that for the Indonesian market, Instagram, Facebook, and YouTube are the platforms to be on.
#4: How Much to Spend
Influencer Marketing Budgets in Indonesia
The word is out - if you want to make a splash in Indonesia, influencer marketing is where it's at! Brands are taking notice and jumping on board with this trend, and it's not hard to see why. In 2022, a whopping 91% of brands in Indonesia increased their marketing budgets, with a generous slice of the pie going towards influencer collaborations. And trust us, this isn't a fad that's going away anytime soon!
The percentage of Indonesian brands investing more than 30% of their marketing budget on influencer marketing has increased from 19% 2021 to 29% in 2022. This trend is likely to continue as more brands realize the power of influencer marketing as a channel to reach and engage with their target audience.
To stay ahead of the competition, it is important to invest in a solid influencer marketing strategy and keep the focus on results. Influencer marketing can be your ace in the hole. It's all about finding the right influencer, the right message and the right platform to achieve your business objectives.
#5: Who to Work With
Most Important Influencer Types in Indonesia
When it comes to influencer marketing in Indonesia, nano-influencers are the most important players. Some people might only be familiar with macro or mega influencers, but in Indonesia, micro-influencers dominate the industry, while nano-influencers come in a close second.
Even though there are some celebrities in Indonesia that have big followings, the population of celebfluencers is small. Meanwhile, macro-influencers make up a much smaller portion of the total influencers in the country. Interestingly, the number of nano-influencers in Indonesia is growing, while the number of micro-influencers is decreasing. This might be because some micro-influencers have grown their audience rapidly and reached the next level.
But, it's not just about the number–the engagement rate of nano-influencers is higher than that of micro-influencers. A study shows that nano-influencers have a higher median engagement rate than micro-influencers on any niche and any platform. For example, nano-influencers who create entertainment content have a higher median engagement rate on Instagram at 6.60% than micro-influencers with 4.38%.
Nano-influencers have a hidden power to drive engagement from their audience despite having a smaller following, because their audience mostly consist of friends and family, and it's easier to make them engage with your content when the content is relatable. They also cost less than other influencers and can deliver real results.
So, in Indonesia, nano-influencers should not be overlooked. They may have smaller followings compared to other influencer tiers, but they have a strong connection with their audience which can lead to higher engagement rates. They are also more budget-friendly options for brands, which makes them a valuable asset for any influencer marketing strategy. By focusing on nano-influencers, brands can maximize their ROI and achieve real results. It's not just about the number, but also the quality of engagement.
Influencer marketing is a powerful strategy for reaching and engaging with consumers in Indonesia. The trust and credibility that influencers hold among Indonesian consumers make them a valuable asset for any brand looking to expand into this market.
Understanding the best platforms for your campaign, the most popular content types, and how much to spend on influencer marketing is crucial for success. Additionally, identifying the right influencer tiers, like nano-influencers, is essential for maximizing ROI.
By following these key takeaways, you can tap into the vast potential of the Indonesian market and achieve real results with influencer marketing.
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