Looking Ahead 2023: Vidio’s Predictions for Indonesia’s AVOD market

Magnite’s Director of Business Development, Asia, Hesty Utami, caught up with Tengku M Rizaldi (Head of Sales Emtek Digital) on what lies ahead for the growing Indonesia AVOD market in 2023 and how Vidio aims to unlock these opportunities. The conversation spanned from the growing programmatic and live linear advantage to innovations driving better consumer ad experience and leveraging data to maximize audience reach. 

OTT/ CTV Acceleration:

With the announcement of Indonesia’s analog TV switch-off, brands are looking to shift traditional TV budgets to OTT/ CTV. What’s your view on incremental CTV growth moving into 2023? 

A: As one of Indonesia’s leading local OTTs with the most comprehensive media ecosystem airing major local FTA channels, Vidio anticipated the shift way before the analogue switch-off (ASO) announcement. Compatible with over 300 device models, which have been preloaded in major OEM SmartTVs like Samsung, Coocaa, Changhong and Polytron with a dedicated remote button in TCL, Vidio has successfully gained more digital audiences in Indonesia since ASO. 

Jabodetabek was the first region to begin the digital transformation, which drove an incremental +50% of live streaming free-to-air watchers to Vidio. Bogor, Depok and Tangerang contributed up to 91% of viewers, and we anticipate this to increase. 

Programmatic Trend: 

What is your take on the programmatic trend in 2023? Do you foresee brands moving more budgets to programmatic – more PG/PMP/ OMP buys? Will brands embrace programmatic to fulfill their omnichannel strategy? 

A: Transparency, ease of use (less human intervention), audience segmentation and activation, and niche targeting, coupled with robust automated reporting and an ability to optimize, make programmatic the preferred mode of buying media today. 

Gradually, we see a shift towards audience buying in addition to media buying. The testimony to this fact is that we are seeing triple-digit growth in year-over-year PMP because it provides greater transparency between the user and the platform. We are moving away from spraying and praying to a more omnichannel approach where there’s a more value-based approach to media buying by using first-party data and enrichment of the same. The same user can now be targeted across several platforms and channels by creating a more holistic approach, which combines data with buying efficiency to have a full-funnel approach. 

OTT/CTV players like Vidio are helping brands utilize the entire repertoire of programmatic buying across OMP, PMP and PG, depending on the campaign objectives. We see the rise of branding campaigns being run with secondary performance objectives as a result where not only volume ( reach, impressions etc.) is assured but even quality of the traffic in terms of engagement and viewability (quality) can be assured. 

While advertisers who need a semi-niche audience continue to spend on open exchange, the trend for others who need a more niche audience is having PMP deals to have better exposure for their inventory with less competition through interest-based audience segments and one-on-one deals.

The entry of open ecosystem players like Magnite with reasonable scale of transactions and spending – even with the existing closed ecosystem – is an indication of things to come for programmatic in 2023. 

Future of Live Sports/ Live Linear: 

How do you see live sports/live linear taking off in 2023? Are publishers ready to offer or expand their live broadcast inventory for more brands to leverage? 

A: As the world recovers from the pandemic, live sporting events are coming back, and people worldwide are well-educated to enjoy sports through OTT platforms. Vidio has established itself as the “home of sports” for Indonesian online audiences at a scale. Aside from the scale of the collection of premium sports like local Liga 1, Proliga, and IBL, Vidio also offers international sports like EPL, FIFA WorldCup, F1, NBA, La Liga, Serie A, UCL/UEL and many more. The Vidio platform also has the scale to host big matches drawing in multi-million viewers, as if with the AFF Suzuki Cup 2020, where up to 11 million people watched the competition. Advertisers also successfully drove purchase intent during the AFF Suzuki Cup 2020 on Vidio. 

Another example was the Tokyo Olympics 2020, where 25 million audiences watched the competition on the Vidio platform. 

With the FIFA World Cup Qatar 2022, Vidio, as the official broadcaster in Indonesia, gained 263 million+ total plays with 30 million+ watchers and achieved the highest data consumption for sports live streaming in Indonesia, up to 3.6 TB/sec. 

Entering 2023, Vidio has been bullish on supporting brands and advertisers in engaging existing, captive, high-quality sports audiences at scale on the platform and would like to invite more brands and advertisers to collaborate with us. Not only because of the existing premium sports property but also with the continuation of excitement around the 2023 FIFA U-20 World Cup in Indonesia, a biennial international men’s youth football championship contested by the under-20 national teams of FIFA’s member associations. 

Ad Experience: 

The consumer ad experience is more important than ever. What are Vidio’s predictions on how publishers will evolve the ad break to improve the ad experience by leveraging the right tech stack and data? 

A: In this digital era, people are becoming more exposed to advertisements. This can result in a lack of engagement and interest. This is where the consumer ad experience becomes crucial. 

Nowadays, people want brands to connect with them in a favorable way, and they will continue to do so in the years to come. Publishers are competing to offer their innovations to drive brands to connect with their consumers.

One of Vidio’s innovations is the live shopping experience while watching live streaming. This innovation gives advertisers the ability to showcase their products, allowing customers to buy products in real time through the brand’s official e-commerce page while watching their favorite and contextual live streaming content. The latest Vidio live shopping yielded CTR of up to 6.8% . 

Vidio also innovates to boost awareness and engagement through contextual gamification. With the content aired on our platform, Vidio gamification has reached up to 200,000 players. 

Future of Identity/ Brand Safety: 

How do you see the identity landscape evolving next year? More efforts from brands and publishers on moving to first-party data? Will clean rooms take off? Will seller-defined audiences be the next big thing? 

A: It’s getting more important for brands to stay relevant to their target audience based on the preferences, interests, and behaviors that they’ve chosen to share online. According to Adlucent, personalized ads have a higher click-through rate (CTR) than their counterparts, they reduce wasted ad spend, and even 70% of consumers prefer personalized ads. While third-party data will presumably be demolished by 2023, this will not be a major concern for first-party data holders. As part of Emtek Digital’s integrated ecosystem, Vidio supports first-party data to the core, making it possible for brands to target their ads to audiences based on their demographics and behavior. Our results clearly reveal that audience targeting increased CTR by up to 144% compared to non-targeted campaigns.