AVIA releases Indonesia study on the untapped opportunity of premium OTT services for advertisers

AVIA releases Indonesia study on the untapped opportunity of premium OTT services for advertisers

Study compares consumer attitudes and usage of video services.

AVIA

Mumbai: 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. This is a follow-up to its study on Premium OTT – Building its Rightful Place in  the Digital Market, which was first released in September 2022 and focused on the Singapore market.

Amongst Indonesian consumers, premium OTT is viewed as having the highest quality content. 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 user generated content 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 4 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 the content 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 AVIA CEO Louis Boswell.

The full Indonesia study research deck and methodology can be found here. This study continues to build  on a regional research project started with a two part study conducted in Singapore in 2022 and 2023.  

AVIA thanks its members Magnite, PubMatic and The Trade Desk for supporting the Indonesia research.