Indonesia has a variety of marketing and advertising trends, but the most dominating form is internet and social media marketing. With the ongoing pandemic, marketers in Indonesia needed to be more creative and strategic in all its campaigns. Marketers and brand-owners had to find a way to reach their market while going around the COVID-19 restrictions and limitations. What better way to do this than going digital?
There are 277 million people in this country and 204 million of them are internet users. There are even more cellphone connections in Indonesia than the total population, amounting to 133.3% in comparison. With this highly-digital nation, using internet and social media platforms have unsurprisingly become the easiest, cheapest, most efficient, and safest way to do marketing in times of lockdowns and travel restrictions. Thus, establishing a strong online presence is a must-do when starting your expansion in Indonesia.
There are several ways to make a booming entrance online in Indonesia. You can utilize social media platforms like Facebook, YouTube, Instagram, and TikTok. You can also collaborate with well-known celebrities, entertainers, and influencers online. Choosing which strategy works best will depend on your budget, values, goals, and timeframe.
In this article, we have curated a list of the top trends in marketing and advertising in Indonesia which you might want to implement to boost your sales. Indonesia is a valuable international market, and you wouldn't want your brand to miss out by not knowing the do's and don't's while making your expansion.
Top 10 Marketing Trends in Indonesia ⬇️
1. Give Your Audience a Voice
Make room for user-generated online content
User-generated content means all types of content that are made by consumers themselves. These are unpaid recommendations from ordinary people who want to share their good product experiences online.
User-generated content can foster trust between a brand and its followers because the content was not made by a brand ambassador or a person who is paid to promote the product. instead, it was made by an ordinary consumer who had a positive experience with the brand. This makes the content more relatable to anyone who reads it.
There are three main reasons why user-generated content is trending in Indonesia. First, this strategy promotes authentic brand image. Second, people can be encouraged to buy a product through the word-of-mouth of someone they already know and trust. Lastly, it is relatively cheap and it sometimes costs nothing at all.
One of the brands that implemented this strategy is Cesi Cosmetics. This brand encouraged its consumers to tag its Instagram account, @cesicosmetics.id, whenever they find themselves using the brand's products. In turn, women across Indonesia tag Cesi Cosmetics in their photos, giving the brand unpaid and effective exposure among the users' peers.
2. Use the Power of Influence
Collaborate with loved influencers in Indonesia
With the rise of social media platforms, influencer marketing is now becoming one of the most used strategies in marketing, especially in Indonesia. Influencer marketing basically concentrates on promoting products or services through an influential person, extending the reach and image of that creator to the brand.
Now, you may ask, why is influencer marketing trending in Indonesia? According to research from Nielsen, 92% of consumers base their purchase decisions from recommendations, suggestions, or reviews from family, friends, and experts—people that they already know and trust.
Influencers fall into this category of trusted people. Instead of buying random products or services on the internet, consumers would prefer to buy products after seeing a detailed review or unboxing from someone they've been following for a long time.
One of the famous clothing brands in Indonesia, Erigo, implemented the strategy by collaborating with famous influencers like Arief Muhammad, Rachel Venya, and others when they participated in the New York Fashion Week.
3. Pin Your Location
Implement location-based marketing and geofencing
Location-based marketing or geofencing is a marketing strategy that utilizes location services. Here, an app or a software program uses radio frequency identification (RFID), GPS, Wi-Fi, and cellular data to provoke a targeted marketing action. In simpler words, it targets a location and sends a text, a social media advertisement, an email, or an app notification within that area range.
Meanwhile, when the mobile device enters or exits a geographic boundary, it is known as geofence.
Pizza Hut, Gojek, and Grab are a few examples of brands in Indonesia that use this marketing strategy. With geofencing marketing, these brands can send notifications or promotional campaigns to potential customers who are nearby. For example, when you arrive in Jogja, you'll get a notification from your Grab App saying that you got a discount voucher to ride a grab car from that place.
It's effectivity lies on the fact that your target audience is narrowed, only including people who are geographically more able to purchase your product or service.
4. Artificial Intelligence
Learn to use and implement chatbots on your social media accounts
Chatbot marketing is a marketing program based on Artificial Intelligence (AI) which functions to interact with consumers via live chat. There are many businesses that are already using this technology in Indonesia. For example, Telkomsel, BRI, and XL. These brands use chatbots to answer any question from customers real-time, 24 hours a day, every day.
Bot technology not only increases customer satisfaction with your business services, but also affects your business' reputation. Your brand appears to be consumer-oriented because you prioritize their inquiries and curiosities about your product. This eventually leads to more sales and recommendations resulting from positive experiences.
5. Keep it Short and Sweet
Utilize short-form video marketing
Short-form videos are one of the most interesting promotional video concepts which started in 2021. Short-form videos are those clips ranging from 5 seconds to a minute accompanied with trendy music and easily-understandable content. These began to rise along with TikTok, and Instagram and Facebook Stories.
Short-form videos are trending in Indonesia because they are attention-grabbing, highly-shareable, and it maintains high engagement from the audience, especially the Gen Zs.
Rachel Vennya is one of the famous influencers in Indonesia who loves to create short-form marketing videos for brands. In this TikTok video, she recorded herself walking along New York Times Square, changing into different Erigo outfits by using popular transitions. This caught the attention of her followers, gaining more than 600K likes and 6.5K comments.
6. Open Your Digital Store
Explore e-commerce and other online selling platforms
Online shopping used to be a luxury. However, with the onset of the pandemic, online shopping became a necessity--something people do not do just for convenience, but also something to ensure their own safety. Of course, this resulted to a boom in e-commerce.
Businesses have seen the importance of switching to or adding an online store. This allows their products to reach all kinds of customers from all corners of Indonesia, or possibly even places outside Indonesia.
According to research, the largest industries contributing to e-commerce market shares are electronics, fashion, food, then furniture.
7. Make a Good Read
Create quality content that is readable and informational
Currently, more than three-quarters of internet users say that they still frequently read blogs. In addition, 70% of businesses are still actively using content marketing as a marketing strategy. Content marketing is a marketing strategy where we plan, create and distribute content that is able to attract the targeted audience, then encourage them to become customers.
According to Neil Patel, content marketing also aims to build strong relationships with the audience in the long term. Therefore, the content created must be relevant in order to create a feeling of need from the audience who ultimately have emotional closeness to things described in the content.
In Indonesia, good content is something people look for. They aspire to read something they can relate to personally and culturally.
For example, Indonesia is a country where the dominating religion is Islam. Culturally, this is a very important fact to consider. Thus, cosmetic and skincare brands tend to include in their content their halal certifications to make their products respectful and inclusive of the audience's culture.
Establish online presence in all available channels
Omnichannel marketing is a marketing practice that relies on multiple platforms at once. Starting from websites, social media accounts, emails, to physical stores. All of these platforms are aligned to deliver the same message and consistent image.
This method increases presence and exposure. Anywhere your consumers might be, they may encounter you and your brand content. You're simply finding your consumers, and not letting them do the hard work of finding you.
In addition, research shows that the level of engagement and the number of purchases through omnichannel marketing is much higher compared to single-channel marketing.
Some Indonesians prefer to do purchases online and some of them still prefers offline. Therefore, omni-channel marketing will help Indonesian consumers to create their own seamless customer experiences according to their own purchase preferences.
9. Social Involvement
Get involved at Indonesia's current social and political issues
Brand activism is now trending, with brands talking about social and environmental issues that resonate with their consumers. Using brand activism as a marketing strategy will show that brands are committed to the issues that people care most about.
One example of a successful brand activism strategy in Indonesia is this campaign by BLPbeauty, a start-up local cosmetic brand. They created a campaign entitled Be Who You Want to Be, which empowers women to reach their dreams without social limitations.
As gender equality is a big issue in Indonesia, this campaign by BLPBeauty hit the hearts of Indonesian girls. The brand effectively portrayed their support for the movement. Consumers nowadays value a brand's principles and political stance, even encouraging boycotts when a brand is not up to par with their humanitarian beliefs. BLPBeauty is aware of this, that's why its campaign was effective in grabbing the attention of women in Indonesia.
10. Choose that Filter
Learn augmented reality trends and how these help in brand marketing
This is a marketing strategy that requires augmented reality technology. This is now widely-spreading in Indonesia, with big brands utilizing AR for their campaigns. For example, Toyota launched an AR-based application to introduce one of its car models. Here, consumers can inspect the features of the car by only using an app, as if the car is really in front of the user.
Another example of AR technology usage in Indonesia is by L’Oréal Indonesia when it launched a new beauty tech feature called Shopee BeautyCam. The feature is powered by augmented reality (AR) and artificial intelligence (AI) technologies, allowing users to virtually try different shades of beauty products on their skin before buying them.
As Indonesians have a diverse range of skintones, the Shopee BeautyCam served beneficial for customers who wanted to make sure they pick the right shade of makeup. It made decision-making easier and more convenient to consumers, making the AR marketing strategy effective in increasing sales.
Indonesia is a modern and digital nation--a fact which marketers must remember before launching their advertisements and campaigns. Due to this character of the market, the best way to reach the Indonesian audience easily became internet and social media marketing.
There are many trends in social media marketing and advertising, but we have enumerated the best strategies for you to implement. These include influencer marketing, geofencing, chatbots, AIs, ARs, UGCs, and many others.
We hope this article has helped you in choosing the best way for your brand to make an entrance in Indonesia. For more information on advertising and marketing in Indonesia, visit the AJ Marketing Blog.
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