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NEW UPDATES Asean Affairs   23  November 2015  

Advertising associations announce online audience measurement initiative

An initiative to standardize online audience measurement in Indonesia, a part of an effort to accelerate the growth of the country’s digital advertising, was recently announced by five associations in Jakarta.

The associations, which together represent the majority of Indonesia’s advertisers, include the Association of Asia Pacific Advertising Media (AAPAM), the Indonesian Advertisers Association (APINA), the Indonesian Digital Association (IDA), the Indonesian E-Commerce Association (idEA) and the Indonesian Advertising Companies Association (PPPI).

According to a press release on Wednesday, Indonesia’s internet penetration has reached 29 percent, more than 70 million users, and is expected to grow significantly to top Japan and Brazil in the next couple of years. Thus, advertisers are expected to shift their budgets to where the audience is and a singular national measurement will be among the crucial ingredients to convince advertisers and agencies to spend more in the digital world.

As part of the initiative, the associations have created a committee to conduct a comprehensive evaluation of several measurement providers. It is currently extending an open invitation alongside the request for proposals to several competent and relevant companies in the industry, which will be assessed based on several criteria such as data robustness, reporting capability, service level and cost to determine the most viable measurement partner.

“Nowadays we are faced with a complexity that hindered digital advertising from reaching its true potential. On the one hand, media owners need to subscribe to several measurements, which is both costly and confusing. On the other hand, advertisers and agencies don’t have a similar currency to assess their advertising media, which resulted in hesitation toward accepting the data validity. We believe now is the right time to start this initiative,” said the committee’s co-chairman Danny Oei Wirianto.

All interested vendors are to submit their proposals to the committee by Dec. 1 at the latest, following several requirements. They will then be given about two months to prepare a presentation to pitch, which is to take place by the end of January 2016.

Once a company has been selected, there will be a series of socialization sessions with the members of all five associations to ensure an industry-wide adoption of the selected platform, as well as an evaluation board to oversee the implementation of it and to maintain quality control.

The selection process will be repeated every two years to ensure that it keeps up with the rapid development of digital industry in the country.

“We fully support and appreciate this independent initiative from digital industry stakeholders to appoint an online audience measurement. This should be an initial milestone for continual innovation in the future,” said Creative Economy Agency (Bekraf) head Triawan Munaf.

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