Advanced Television

Study: Premium OTT ad opportunities in Indonesia

October 4, 2023

The Asia Video Industry Association (AVIA) has released a study to understand the usage of different video services in Indonesia and consumer attitudes towards them. The study looked at video across social media, user-generated content (UGC), linear TV, messaging services and premium OTT.

Amongst Indonesian consumers, premium OTT is viewed as having the highest quality content. Three-quarters (75 per cent) of users of premium OTT services (such as Netflix, Vidio, Viu and WeTV) said it offered the best quality content, higher than users of any other category of video. Of all 24 video platforms studied, five of the top seven services ranked as offering the highest quality content were premium OTT.

Usage of premium OTT is also associated with the most positive emotions. When asked about feelings after watching an hour of different types of content, TV series and movies significantly outscored UGC and social media in eliciting happiness and amusement.

While premium OTT is still at an earlier stage of development in Indonesia than free UGC and social media services like YouTube and TikTok, it is clear that those who use premium OTT value it more. When asked what video services they would first be prepared to forego, only one in the top ten services was premium OTT, and the top four were all social media or UGC services.

“We believe the power and opportunity of premium OTT is hugely significant and offers a real and relatively untapped opportunity for advertisers in Indonesia. The proven quality of the environment, the stickiness of thecontent and the positive emotions created by it are critical for advertisers, and this study clearly demonstrates that. Given the dominance and high penetration of UGC and social media video services in Indonesia, the fact that this smaller but growing category of premium OTT performed so well in these categories is quite remarkable. We believe advertisers need to sit up and take note,” said Louis Boswell, CEO, AVIA.

Categories: Advertising, Articles, Consumer Behaviour, Markets, Premium, Research, Social Media

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