The latest digital advertising market report from Dentsu presents comprehensive advertising market research, projecting significant growth for the Indonesian advertising market. Advertising expenditure Indonesia is forecast to grow by 5.1% in 2025, reaching a value of USD 4.0 million, and continue rising to 5.4% in 2027 (USD 4.45 million). This market data positions Indonesia as one of the top two markets driving advertising spending growth in Southeast Asia.
Accelerated Growth Across Digital, OOH, and TV Channels
The growth of the national advertising industry in Indonesia is fueled by strong performance in several key channels:
- Digital: This channel is predicted to experience the strongest growth, between 10.0% and 12%. Key drivers include the expansion of e-commerce, social commerce, video advertising, and programmatic campaigns.
- Out-of-Home (OOH): Including Digital OOH (DOOH), this channel is estimated to grow by 7.0% YoY. Growth is supported by urban infrastructure development, smart city initiatives, and the adoption of more advanced programmatic targeting.
- Television (TV): Maintaining stable growth in the 3-5% range. TV ad spending remains solid, backed by the FMCG and automotive sectors relying on TV's broad reach, as well as momentum from festive seasons and major sporting events.
Sector-wise, Retail (+54.8%) and Media & Entertainment (+25.6%) are predicted to lead advertising growth in Indonesia in 2025.
Regional Context and Strategic Insights
Regionally, Asia Pacific (APAC) is expected to grow by 5.8% in 2025, outpacing global GDP and global ad spend projections, solidifying its position as a global leader in advertising investment. Within APAC, Southeast Asia is projected to grow fastest, with an estimated ad spend increase of 6.8%. Indonesia (5.1%) along with the Philippines (15.4%) are the main drivers in this region.
Elvira Jakub, CEO of dentsu Indonesia, commented, "Indonesia's advertising landscape is rapidly transforming thanks to digital innovation. This presents opportunities for advertisers to leverage AI to create tangible impact by identifying and integrating the right AI tools for brand needs. Furthermore, brands need to adapt to evolving consumer preferences, such as the 'affordable luxury' mindset, through marketing strategies that enhance perceived value and meet the growing need for personalized interaction."
The CEO of dentsu Indonesia also added, "Success in 2025 hinges on the ability to create integrated experiences across all channels, redefine the roles of online and offline retail, and build consumer relationships through meaningful, purpose-driven storytelling."
Key Trends for 2025
This digital advertising market report also identifies several key digital marketing trends for 2025 in APAC. These include the expanding role of GenAI in retail, the influence of platforms like Xiaohongshu, APAC's dominance in global e-commerce (with SEA as the fastest-growing market), tightening data privacy regulations driving the adoption of consent management platforms, and the potential for rising media inflation.
For more in-depth advertising market research and analysis, read the full Dentsu Ad Spend Report 2025.