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Rise of Social Media Influencer Marketing in Indonesia

Insights into influencer marketing in Indonesia, and tips for marketers and influencers

We’re stating the obvious, but Indonesia is a big market for influencer marketing.

Data sourced from We Are Social and Hootsuite in 2020 showed a social media penetration rate of 160 million people (59% of the country’s population), with an 8.1% year-on-year growth.

However, that alone just shows the potential audience reach, but nothing about how this can impact marketers and businesses looking to reach audiences in Indonesia.

Looking a bit deeper into the statistics, 94% of internet users (175.4 million people at 64% penetration rate of the country’s population) own a smartphone, and the average daily time spent a day using social media is 3 hours and 26 minutes, with a 95% rate of users actively engaging or contributing to content on social media. Apart from search engines and ads, social media and word-of-mouth recommendations are included in the top six ways consumers learn about a new brand in Indonesia.

Indonesia e-commerce and influencer marketing

Combined with the country’s app and e-commerce landscape, consumers in Indonesia are arguably more familiar with online transactions and convenience, compared to some other regions in Asia. The same report above showed 88% of internet users making a purchase online, with 93% searching online before making a purchase. The largest categories of e-commerce spend include travel, fashion & beauty, electronics, food & personal care, toys, DIY & hobbies.

These factors have combined to create a ripe environment for influencer marketing in Indonesia, and we have seen a strong track record of growth in this Southeast Asian region.

Growth and gaps

Based on insights in the last three months of 2019 and first three months of 2020, gleaned from CastingAsia platform data and our team of local influencer marketing experts, the following categories have performed strongly in Indonesia: food & personal care, electronics, FMCG and travel. At the same time, brands are increasingly looking at influencer marketing as a means to reach a broader audience at extension (inclusive of target audience), compared to a pre-defined audience segment.

Influencer marketing can also provide businesses with a unique positioning boost. Looking at the Indonesian market, it’s the onus of influencer marketing companies to definite the right business strategy and the industry-at-large to define the right standards, providing a foundation from which brands and influencers can leverage on influencer marketing’s true potential.

Similar to digital advertising, influencer marketing vendors now have the challenge of educating the industry on how best to utilize influencer marketing. Most importantly, influencer marketing should not be seen as a short-term measure, but rather a long-term strategy - with influencer marketing activities planned to tell a cohesive story.

On the other hand, influencers in Indonesia know that to continually maintain their engagement rates and followers, they will need to deliver content that caters to their audiences and put their own unique spin to generated content. As such, brands will need to match the objectives of their campaign with the content produced by influencers - a mutually beneficial exchange from both sides.

Indonesia influencer marketing and content creation

Recent trends

Brands in Indonesia are increasingly looking for influencers that can help them drive social impact by influencing their followers to align with a certain cause.

At the same time, there is a rising demand to leverage on high-engagement accounts like @lambe_turah, @folkative, and @awreceh.id, leveraging on their strong user engagement and reach.

On the other side of the equation, influencers in Indonesia have started implementing their own content guidelines and regulations for brands, whilst keeping in mind the objectives of the brand.

An example of this in action is that of a campaign ran through CastingAsia, where a prominent brand engaged an influencer to recreate their jingle in the influencer’s own signature style. This recreated jingle went viral, and the influencer asked his audience to share their own version of the jingle in their own dialect or mother tongue.

CastingAsia influencer dashboard

Influencer Highlight

We take a closer look at an influencer in Indonesia who is active on the CastingAsia Marketplace, Faiz Sadad. He successfully combines storytelling, comedy and authenticity to deliver engaging content, leading to an overall engagement rate of 14% amongst his 200,000+ followers on Instagram.

He has also worked with various brands including Tokopedia, Pocky, PUBG, DBS and more, taking a storytelling approach to product endorsement.

If you’re keen to work with Faiz Sadad and other social media influencers in Indonesia, feel free to fill in the form below out for more information.

We’ve also checked with our on-the-ground experts in Indonesia on tips for brands and influencers:

For Brands:

• Keep abreast of evolutions and trends in the local and regional influencer marketing space. This also goes back to a point above about knowledge of influencer marketing, and will help in the preparation of campaign strategy and objectives.

• Leverage on tools that give you access to insights of audiences of influencers, and plan a strategy to engage with the influencer’s audience.

• Leverage on Indonesian social media users’ propensity to comment and tag their friends on posts, by working with influencers to create content with a clear call-to-action for user engagement on posts.

For Influencers:

• Get to know your clients’ (in this case, brand) objectives and match it with your audience’s expectations.

• Work on a brand campaign that suits your passion and persona, and be flexible with the terms of the brand, do not stick with rules that keep you in your comfort zone, take on interesting content and storytelling challenges, whilst maintaining engagement with your audience.

• Continually elevate your skills and knowledge in content creation, and do not be afraid to adapt to trends as long as it matches your style and benefits your personal brand.

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If you would like a customized consultation on influencer marketing, or find out more about CastingAsia's products, please fill in the form below and a representative will connect with you.

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