Indonesia’s e-commerce market set to hit $130b by 2020

Indonesia has the biggest and fastest growing online retail sector in Southeast Asia, according to Research and Markets.

In this environment, RTB House, a provider of retargeting technology for advertisers, anticipates that Indonesia’s e-commerce players will increase adoption and reliance on retargeting to improve customer engagement and conversion rates, strengthen branding, and enhance ROI on their marketing spends.

Personalized retargeting is a mechanism by which ads are tailored to the behavior and preferences of particular internet users.

This form of online advertising helps keep brands on top of customers’ minds at every step of the customer journey, after they visit and left certain websites before they could make a purchase.

The online consumption market has seen an alarming increase in e-commerce cart abandonment from 60% in 2006 to 78% in 2016, according to a Baymard Institute report. Retargeting technology will allow brands to prompt higher conversion rates among these users.

The 2017 Digital Yearbook report by Hootsuite and Wearesocial estimates that 51% of Indonesians have access to the Internet. With mobile subscription standing at 142%, there is recognition that the country represents one of the largest online marketplaces in the world flanking China and India.

Next to investment and manufacturing, the consumption market which includes e-commerce is among the largest economic segments in Indonesia. E-commerce is expected to grow to up to $130 billion in 2020, according to Indonesia’s Information and Communications Technology Ministry.

Indonesia’s burgeoning digital environment presents companies like RTB House a lucrative opportunity to deliver advanced retargeting solutions to a wide array of customers including e-commerce, online travel sites and classifieds.

A report by eMarketer and Interactive Advertising Bureau Singapore (IAB Singapore) forecasted digital advertising spending in Indonesia will double up to 20.5% of the total media ad spending by 2020 due to rapid internet adoption, particularly through smartphones.

“We expect a substantial growth in Indonesian e-commerce players’ adoption of retargeting and what will really drive this is improved ROI on their marketing spend as our technology based on deep learning, helps to profitably and effectively drive new customer acquisition and entice existing users to their online marketplace,” RTB House country director for Southeast Asia  Chandra Kuncara said.

“Deep learning is currently the most promising subfield of artificial intelligence. We believe these new digital ways will help our customers (marketers) succeed.”