The Future of Outdoor Advertising Technology in Indonesia

Today's marketing campaign activities have become one of the most attractive opportunities for technological solutions to be explored. One way that is starting to bloom in Jabodetabek is the presence of mobile advertisements using cars (car advertising) and motors.

Within the last three years DailySocial noted that there are several startups trying to target the service car advertising and outdoor advertising in Indonesia. These include Stickearn, Adroady, UBadvertisement, PayRide, Acquired Promogo Gojek and just launched GoScreen, and IDN Media via IDN Programmatic Out-of-Home (IDN POOH).

How does the development of the Digital OOH business model take place during a pandemic? Does each platform's technology have the appropriate effectiveness for the target market?

Outdoor advertising business opportunity

Even though it looks easy to understand, the concept of outdoor advertising using cars, motorbikes and other media requires the right strategy and technology.

Adtech platform founded by Daniel Tumiwa, advocate, carries the O2O (online-to-offline) concept and has been operating since July 2017. Adsvokat uses stickers on cars, helmets, smartphones and clothing as a medium.

After running for several months, at the end of 2018, Adsvokat decided not to continue the business and close the company fully. Daniel Tumiwa revealed that Adsvokat's biggest failure was timing. Too fast. The second takes less account of the game cash flow.

"I saw the idea of ​​Adsvokat more closely and relevant in its time at that time, because previously I had run several startups and they were very too advanced from his time and this Advocate more part," explained Daniel.

The failure that occurred with Adsvokat did not reduce the interest of other players in offering a similar concept. Other players are emerging and trying to be adaptive to stay relevant with trends.

UB Advertisement CEO Glorio Yulianto revealed the concept hybrid advertising is currently the UbIklan guideline.

"Offline media is an advertising medium, while the analytics are online-based. We called it hybrid advertising media. "We can take [advertiser] budgets from two divisions, namely online and offline," said Glorio.

In 2020 two new platforms emerged with the latest Digital Out of Home technology claims. They are IDN Programmatic Out-of-Home (IDN POOH) and GoScreen. The last one is the Promogo product which utilizes ecosystem and data integration Gojek.

Pandemic and business growth

During the pandemic, many startups experienced problems and hampered their business growth. The existence of PSBB regulations and the increasing number of employees working from home has made roads emptier and made it difficult for the outdoor advertising technology segment to function properly.

One startup that is still surviving in this segment is StickEarn. At the end of 2019, StickEarn announced a new service called StickTron (now MobileLED). The company also received series A funding with a value of $5,5 million or the equivalent of 77,6 billion Rupiah.

"StickEarn understands the restrictions imposed by the government and we support these policies so that conditions can improve again. The impact of the pandemic has been felt by all businesses, including StickEarn, which has taken advantage of traffic jams as an opportunity for brand to introduce their ads," said StickEarn Co-Founder Archie Carlson.

According to IDN Media CEO Winston Utomo, during the pandemic, it cannot be denied that the OOH industry was affected, including IDN POOH. However, the company strongly believes in the potential and future of this sector.

"So, over the last 6 months, we have increased the number of IDN POOH units by 2x or 100%. We have also increased the number of Sales and Engineering teams for IDN POOH. We have also made several improvements in terms of hardware and . For example, IDN POOH technology can now give advertisers the freedom to plan, change creative [content], or monitor advertising in progress. real-time," said Winston.

The pandemic hasn't hampered plans either Gojek (via Promogo) presents GoScreen. After being acquired Gojek, Promogo tries to present relevant technology using data and an integrated ecosystem Gojek. Utilizing the driver partner's two-wheeled vehicle, not only brand There are many people who can enjoy this outdoor advertising technology, but also merchants Gojek and other SMEs. Even though it is only limited to the Jakarta area, GoScreen has a target of expanding its coverage area to tier 2 and tier 3 cities.

"The main challenge for outdoor advertising users today is measuring the effectiveness and performance of advertising. GoScreen answers this through technology that is able to measure advertising performance based on location and time precisely, thus providing advertisers with complete reports," said the Chief Commercial Officer Gojek Antoine de Carbonnel.

Data road analytics TomTom showed a reduction in congestion levels of more than 60% at the start of the PSBB. This makes brand refrain from carrying out outdoor advertising activities. However, with fairly relaxed policies, congestion levels have increased again to 30% and people are returning to activities outside the home. This makes demand for advertising is increasing again.

The effectiveness and future of outdoor advertising

Outdoor advertising technology car advertising and Digital OOH is predicted to be one of them 12 advertising technology trends which has and will continue to develop.

As of Q3 2020, on average, all Promogo Digital OOH solutions are claimed to have experienced an increase in business growth of 40% and more than 50 thousand driver partners have joined. Generating impressions of 15 billion views.

"The services we offer provide brands with more data-measurable advertising solutions at competitive prices. Brand can optimize their ads effectively real-time and monitor its performance via online dashboards "especially transparent and clear," said Promogo Director Kiranjeet Purba.

Concept real-time IDN POOH is also offered. It claims to use special patented technology to display advertisements online real-time and measurable. IDN POOH offers a variety of advertising outputs that can be tailored to your needs.

"With the best technology in the OOH industry, a competent team, and a complete IDN Media ecosystem, we are very confident that IDN POOH will be the best choice for Out-of-Home (OOH) advertising," said Winston.

Meanwhile for StickEarn, usage real time dashboard, making it easy for advertisers to access the running of advertising campaigns.

Regarding the effectiveness of campaign activities utilizing Digital OOH technology, both IDN Media, StickEarn and GoScreen claim that they are currently still showing good growth. Even though the pandemic conditions disrupted business operations, this did not become an obstacle to developing OOH products and businesses.

"We are currently in the Research & Development (R&D) stage for hyperlocal targeting. With this technology it is hoped that this can be done targeting "more precisely and accurately, so that the SME industry can also utilize technology from IDN POOH because the ROI is better and optimal," said Winston.

Before being launched, GoScreen itself had carried out around 50 projects. One of them is Disney+ Hotstar. GoScreen targets that by the end of 2021 it can reach 20 thousand screen in Indonesia.

"Through GoScreen, our partners have the opportunity to get additional income opportunities of up to 20% of their normal income. Apart from that, GoScreen solutions at affordable prices can also be utilized by SME business people to start increasing brand visibility, as well as developing their business to a higher level through the use of data , so that they are able to decide on more effective business strategies," said Kiran.

In line with the company's mission, StickEarn wants to make advertising platforms more effective, sophisticated and more accessible, and make the outdoor advertising climate more vibrant.

"With very competitive prices customizable, now OOH can be accessed by brands at all levels, from multinational companies to SMEs. We note that 20% of our clients are SMEs. "This is good news for the industry," said Archie.