Indonesia Advertising Market Size, Share, Growth and Forecast, 2025-2035

A mobile-first audience moves ad budgets online

The Indonesia advertising market was valued at USD 6.44 billion in 2025 and is projected to increase from USD 7.00 billion in 2026 to USD 13.84 billion by 2035, registering a CAGR of 7.87% during 2026–2035. Demand comes from about 285.7 million people, a fast-growing online audience and brands that now sell through marketplaces, short video and chat apps. Greater Jakarta held the largest regional share, 42.0% in 2025, because the capital hosts most national advertisers, broadcasters and agency networks. Kalimantan and Sulawesi grow fastest at 8.43% a year, as phone use spreads and regional brands buy online placements. The most important commercial change is the rise of shoppable media, where ads on video and social apps now link viewers straight to checkout pages and let brands pay for sales rather than for reach alone.

Which media and ad formats does the estimate count?

The estimate measures paid media spending by advertisers in Indonesia across digital platforms, television, out-of-home media, print, radio and cinema. It covers search, social, video, display, native, audio and experiential formats, whether bought directly, through agencies, through programmatic auctions, on a performance basis or on retail platforms. Values are stated in USD million at current prices, converted from rupiah at average annual exchange rates.

The estimate excludes agency fees that are not tied to media, in-house marketing staff costs, sponsorship rights and public relations work. It also excludes spending by Indonesian brands on media placed outside the country. The value chain runs from advertisers through agencies and ad technology platforms to publishers, broadcasters, outdoor owners and creators.

Digital channels and social formats carry the most value

Why do digital channels lead ad spending in Indonesia?

Based on media channel, the market is categorized into digital, television, out-of-home, print and radio and cinema. Digital channels led with 58.0% of 2025 value, because most Indonesians now watch video, chat and shop on their phones. Digital spending also grows fastest at 9.21% a year, as brands move budgets from print and radio toward mobile video and social feeds.

How do social and video formats shape budgets?

Based on advertising format, the market is categorized into search, social media, video, display and native, and audio and experiential advertising. Social Media Advertising led with 31.0% of 2025 value, because brands use feeds, stories and creator posts to reach young buyers. Video Advertising grows fastest at 8.94% a year, as short video and connected TV ads link viewers to product pages.

Which industries spend the most on advertising?

Based on end-use industry, the market is categorized into consumer goods and retail, financial services, telecommunications and technology, automotive and mobility, and travel, media and entertainment. Consumer Goods and Retail led with 38.0% of 2025 value, because food, personal care and marketplace brands advertise all year. Travel, Media and Entertainment grows fastest at 8.34% a year, as streaming and travel brands chase new viewers.

How are advertisers changing the way they buy media?

Based on buying model, the market is categorized into direct media buying, agency-mediated buying, programmatic auctions, performance-based buying and retail media buying. Agency-Mediated Buying led with 37.0% of 2025 value, because large brands still rely on agencies for planning and television deals. Retail Media Buying grows fastest at 10.32% a year, as marketplaces sell sponsored listings close to the point of purchase.

Phone reach, shoppable media and steady growth lift budgets

How does a mobile-first audience scale ad budgets?

A mobile-first audience scales ad budgets, because brands can now reach most Indonesian households through phones rather than through television alone. Indonesia had 229.43 million internet users in 2025, a penetration rate of 80.66%, up from 221.56 million in 2024, according to an APJII survey reported by Bisnis.com. Internet use reached 72.78% of the population in 2024, up from 69.21% in 2023, according to World Bank data. The population reached about 285.7 million in 2025, so each extra point of penetration adds millions of reachable viewers. Penetration also rose from 79.50% in 2024, a gain of more than one point in a single year. As a result, mobile video and social placements absorb most new budgets through 2035.

Why does commerce and retail media expansion lift spending?

Commerce and retail media expansion lifts spending, because marketplaces and video apps now let brands pay for ads that end in a purchase. TikTok completed its purchase of 75.01% of Tokopedia on Jan. 31, 2024, which joined short video with a major online marketplace. YouTube said on Oct. 7, 2026, that its shopping affiliate program in Indonesia works with Shopee, Lazada, Blibli and Zalora, and that YouTube ads can take viewers straight to checkout. Retail was expected to be the fastest-growing advertiser sector in 2025, with spending up 54.8%, according to the dentsu Indonesia forecast. Media and entertainment spending was also expected to rise 25.6%. In turn, retail media buying grows at 10.32% a year through 2035, the fastest of any buying model.

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How do video, social and programmatic buying reallocate budgets?

Video, social and programmatic buying reallocate budgets, because advertisers want measurable reach and a lower cost for each result. Digital spending in Indonesia was expected to grow 10% to 12% in 2025, compared with 3% to 5% for television. Out-of-home media, including digital screens, was expected to grow 7.0% in the same year. Meta now lets Indonesian advertisers manage WhatsApp, Facebook and Instagram campaigns from one Ads Manager dashboard, while its Advantage+ tools use AI to shift budgets between placements. These tools reward short video and creator content that keeps viewers watching. Consequently, video advertising grows fastest at 8.94% a year, while social media advertising keeps the largest format share, 31.0% in 2025.

Why do steady economic growth and agency investment matter?

Steady economic growth and agency investment keep ad budgets rising, because brands plan campaigns around household spending and national sales targets. Indonesia's economy grew 5.11% in 2025, up from 5.03% in 2024, according to Statistics Indonesia. Java produced 56.93% of national output in 2025 and grew 5.30%, which keeps the largest budgets on the island. Total ad spend in Indonesia was expected to grow 5.1% in 2025, and the country was named one of the top two markets driving growth in Southeast Asia. Publicis Groupe Indonesia agreed on May 28, 2026, to buy Inter Pariwara Global and iLab Indonesia, which employ about 150 people. As a result, agency-mediated buying keeps 37.0% of 2025 value.

Agency mergers and streaming reshape media buying

How is the shift to merged, AI-led agency groups playing out?

Agency groups are shifting toward merged, AI-led structures, because global advertisers want one partner for media, data and commerce. WPP retired the GroupM name on May 28, 2025, and renamed its media arm WPP Media, keeping Mindshare, Wavemaker and EssenceMediacom as client teams around its WPP Open AI platform. Omnicom completed its acquisition of Interpublic on Nov. 26, 2025, according to Omnicom, and runs the combined group on its Omni platform. Hakuhodo International Indonesia named new leaders across its units in 2025 as part of a strategic overhaul. Publicis then folded two acquired Indonesian agencies into Spark Foundry Indonesia in 2026. Consequently, large advertisers can buy planning, data and commerce media from fewer, larger partners through 2035.

Why are TV groups rising in streaming while keeping broadcast reach?

Television groups are rising in streaming while they keep broadcast reach, because viewers split time between free TV and apps. SCTV and Indosiar held the viewership lead in the first quarter of 2025, and every channel run by Emtek ranked in the national top 10. Emtek also runs Vidio, a streaming platform whose subscriptions kept growing in early 2025. MNC Media reported that RCTI had a 15.2% primetime audience share in 2024, while MNCTV averaged 13.8% and GTV 6.5% of all-time viewing. Both groups can therefore sell television spots and streaming ads together to national brands. As a result, television stays the second-largest channel, while streaming adds new video inventory for advertisers.

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Is there an opening to reach online audiences outside Java?

Online audiences outside Java offer a clear opening, because internet use is already high on the other islands while national campaigns still focus on Jakarta and Surabaya. Internet penetration reached 78.72% in Kalimantan, 77.12% in Sumatra and 76.86% in Bali and Nusa Tenggara in 2025. Sulawesi reached 71.64% and Maluku and Papua 69.26%, which leaves room for more users. Sumatra alone held 20.5% of all Indonesian internet users in that year. Regional banks, retailers and transport brands can therefore buy local targeting on social and video apps at low cost. Consequently, Kalimantan and Sulawesi become the fastest-growing region for advertising spending through 2035.

Can business messaging become a new ad channel?

Business messaging opens a second opportunity, because Indonesian buyers already ask brands questions inside chat apps before they buy. Meta said in August 2025 that 88% of people in Indonesia message businesses every week, citing its own research. The company added ads in the WhatsApp Updates tab, promoted channels and voice calls for businesses, with CIMB Niaga among the first adopters of calling. Meta is also testing a business AI tool that answers chats and recommends products, and plans to open it to Indonesian firms if tests succeed. Click-to-chat ads also support influencer marketing campaigns that send fans to a seller. In turn, performance-based buying grows faster than direct buying through 2035.

Child safety rules, tax duties and slow TV growth weigh

How do child online safety rules limit targeting?

Child online safety rules limit targeting, because platforms must restrict young users and the ads they see. Government Regulation 17 of 2025, known as PP Tunas, was set for full enforcement on March 28, 2026, according to Antara. Access to high-risk platforms is delayed until age 16, while lower-risk services open from age 13. As a result, snack, toy and game brands lose some reach among teenagers. Brands can respond with contextual placements, family content and stronger age checks with platforms.

Why do digital tax duties raise compliance work?

Digital tax duties raise compliance work, because foreign platforms that sell ads and services to Indonesians must collect value-added tax. The government had appointed 246 digital service companies as tax collectors by September 2025. These collectors had remitted Rp 32.94 trillion in value-added tax on digital trade by Sept. 30, 2025. Consequently, platforms pass some tax and compliance costs to advertisers through prices, which raises costs for small firms. Clear invoicing and local billing entities help brands track these costs.

How does fragmented measurement slow budget decisions?

Fragmented measurement slows budget decisions, because each platform reports results with its own tools and definitions. Brands that buy television, marketplace, social and video ads at once struggle to compare reach and sales across them. As a result, some advertisers hold back budget or keep money in familiar channels even when newer formats perform better. Tools for digital marketing analytics now help brands join these reports. Shared panels, clean data rooms and clear attribution rules help agencies and brands make faster decisions about where to spend each rupiah.

Why does slow growth in traditional media weigh on totals?

Slow growth in traditional media weighs on totals, because television still carries a large share of national budgets. Television spending was expected to grow only 3% to 5% in 2025, while print and radio budgets keep shrinking as readers and listeners move online. Broadcasters and publishers therefore face pressure on prices and staff. However, groups that bundle broadcast, streaming and social clips can keep advertisers, which softens the decline of older media formats.

Greater Jakarta leads while outer islands grow faster

Why does Greater Jakarta lead advertising spending?

Greater Jakarta held 42.0% of 2025 value and grows at 7.53% a year, because the capital hosts most national advertisers, broadcasters, agencies and platform offices. Java produced 56.93% of national output in 2025, and Greater Jakarta is the largest commercial center on the island. Most national television and digital campaigns are planned and bought from the capital. The area also has the densest network of digital billboards, malls and transit screens, which supports out-of-home spending.

How does the rest of Java add volume?

Java outside Greater Jakarta held 30.0% of 2025 value and grows at 8.03% a year, because Surabaya, Bandung, Semarang and Yogyakarta host large consumer markets. Java accounted for 58% of all Indonesian internet users in 2025 and reached 84.69% penetration, the highest of any island group. Regional retailers, universities and property developers buy local social and video ads. Factories and e-commerce warehouses in these provinces also attract recruitment and delivery campaigns.

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What shapes advertising demand in Sumatra?

Sumatra held 14.0% of 2025 value and grows at 8.03% a year, because Medan, Palembang and Pekanbaru support steady consumer and retail spending. The island held 20.5% of national internet users in 2025, with penetration of 77.12%. Regional banks, plantation companies and retail chains buy local radio, outdoor and social placements. National brands also run regional versions of television campaigns for Sumatran audiences.

Why do Kalimantan and Sulawesi grow fastest?

Kalimantan and Sulawesi held 9.0% of 2025 value and grow fastest at 8.43% a year, because rising incomes and phone use widen the online audience. Internet penetration reached 78.72% in Kalimantan and 71.64% in Sulawesi in 2025. Resource industries and trade support spending in cities such as Balikpapan and Makassar. Online ads reach towns with few billboards or local media outlets.

How do Bali and eastern Indonesia add tourism demand?

Bali and eastern Indonesia held 5.0% of 2025 value and grow at 8.23% a year, because tourism brands, hotels and airlines advertise to visitors. Internet penetration reached 76.86% in Bali and Nusa Tenggara and 69.26% in Maluku and Papua in 2025. Travel and food brands buy social and search ads aimed at tourists before and during their trips.

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Platform deals, agency mergers and new rules

AI buying, shoppable video and messaging ads change delivery

• AI campaign tools such as Advantage+ shift budgets across WhatsApp, Facebook and Instagram placements, which cuts manual planning work for brands.
• Shoppable video on YouTube and TikTok links ads to checkout pages on Shopee, Lazada and Tokopedia, which lets brands measure sales directly.
• Messaging ads in the WhatsApp Updates tab and click-to-chat formats send buyers into conversations with sellers before they buy.
• Data platforms used for social media analytics help agencies compare reach and sentiment across apps and channels.

Global platforms, TV groups and agency networks compete

Competition is spread across global platforms, local television groups and agency networks. Google, Meta and ByteDance compete for digital budgets through search, social, video and shoppable formats, and each now links ads to marketplaces or chat. Emtek runs SCTV, Indosiar and the Vidio streaming service, while MNC Media runs RCTI, MNCTV and GTV, so both groups sell broadcast and online video together. Dentsu Indonesia, Publicis Groupe Indonesia and Hakuhodo International Indonesia compete for planning and buying mandates, and Publicis added two local agencies in 2026. WPP Media and Omnicom bring global data platforms after their 2025 restructurings. Companies compete on audience reach, data quality, measurement, creative speed, price per result and links to commerce. Smaller performance agencies and creator networks also win budgets from digital-native brands that want fast tests and low fees.

Companies profiled and their roles in this market

Credence Research view on fast digital ad growth

Credence Research's view is that Indonesian advertising will grow quickly through 2035, because a large mobile audience and commerce-linked formats let brands tie spending to sales. Digital channels already hold 58.0% of 2025 value, and retail media buying grows fastest. Agency mergers and AI tools should lower the cost of planning and buying. However, child safety rules, tax duties and fragmented measurement could slow some budgets. Greater Jakarta keeps the largest share, while Kalimantan, Sulawesi and the eastern islands grow faster as phone use spreads.

How the ad spending estimate was built

The report uses 2025 as the base year, with values in USD million at current prices. Market values come from the Credence Research model, which combines media spending by channel, advertiser activity and audience reach. Regional shares are Credence Research estimates based on internet-user and output shares by island group, and segment splits by channel, format, industry and buying model are also Credence Research estimates. Sources used are government statistics, regulator statements, World Bank data, industry association surveys, company announcements and news reports, and no interviews or surveys were used.

Commerce media and outer-island reach set the path to 2035

The market is expected to reach USD 13.84 billion by 2035, a 7.87% CAGR during 2026–2035, as mobile reach, shoppable media and steady economic growth lift advertising budgets. Growth should be strongest in retail media buying, video formats and in Kalimantan and Sulawesi, while Greater Jakarta keeps the largest share. Agencies that combine data, creative and commerce media should win mandates from large brands. In contrast, tighter child safety rules or a sharp slowdown in household spending would cut growth for some advertisers.

Note: The depth of individual sections depends on data availability for this market. Volume, capacity, trade and other unit-based metrics are included where applicable.