Influencer Marketing in Asia will cross $19 billion in 2023 and projected to hit $30 billion in 2027, presenting a unique opportunity to tap into niche audiences, boost awareness and drive conversions.
In Indonesia, 77% or 212.9 million of the total population are internet users, and 167 million of them use social media. This makes influencer collaborations emerging as a pivotal force in the market, steering a significant shift in how brands allocate and consumer engagement strategies.
Notably, 57.5% of Indonesian brands are allocating marketing budgets exceeding IDR 100 million in 2023, marking a substantial increase from 42.5% in 2021. This surge in financial commitment coincides with a significant uptick in brands venturing into influencer marketing, with 86.3% actively participating in such campaigns in 2023, up from 73.8% in 2021. Furthermore, a noteworthy trend is the inclination of brands to allocate a substantial portion, ranging from 10% to 50%, of their overall marketing budget to influencer collaborations, revealing a strategic recognition of the impact these partnerships yield.
In the realm of media spending, influencers have claimed a prominent position, ranking third in the hierarchy of media spending in Indonesia from 2021 to 2023, capturing a significant share of 38.8%. This trend is emphasized by the fact that an astounding 90% of Indonesian users invest more than two hours of their time on social media platforms in 2023, reinforcing the pivotal role these channels play in brands’ outreach strategies. In 2023, a considerable 71.3% of brands said they intensify influencer collaborations this year, with 26% running influencer campaigns once a month. Additionally, 47.5% of brands are working with 11 to 100 influencers and 8.8% of brands are engaging more than 100 influencers, a sharp increase from 2.5% in 2021.
In terms of content type, short-form videos, particularly on platforms such as TikTok, Instagram Reels and SnackVideo (Kwai), have emerged as the favored content type among Indonesian users. This aligns seamlessly with influencer content strategies, as almost 80% of users express a preference for influencer accounts over brand accounts, seeking relatable and informative content. The integration of various content types, including comedy, memes, tutorials, and live streams, has played a crucial role in enhancing the performance and effectiveness of campaigns.
Nearly 94% of Indonesians replied that they would like to see a product or service being promoted by an influencer at least 2 times before making a purchase. They are also more impacted by a product recommended by many influencers within a period of time, bringing abundant opportunities for brands to build connection with potential consumers.
All these will continue to drive the development of influencer marketing in Indonesia and make it a crucial strategy for brands to boost brand awareness in the dynamic digital market.
Want to know more about how to explore right influencers to your brand and track the campaign performance effectively? Contact MOCA at business@moca-tech.net.