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INDEXINDONESIAGWI MARKET REPORT

03INTRODUCTION

04PROFILING INTERNET USERS IN INDONESIA

13DEVICE

23MEDIA CONSUMPTION

30SOCIAL

38COMMERCE & BRAND ENGAGEMENT

07KEY DIGITAL STATS: INDONESIA VS GLOBAL AVERAGE

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MARKETS COVEREDArgentina • Australia • Belgium • Brazil • Canada • China • Egypt • France • Germany • Hong Kong • India • Indonesia • Ireland • Italy • Japan • Malaysia • Mexico • Netherlands • New Zealand • Philippines • Poland • Portugal • Russia • Saudi Arabia • Singapore • South Africa • South Korea • Spain • Sweden • Taiwan • Thailand • Turkey • UAE • UK • USA • Vietnam

To explore questions/data-points in PRO Platform, using bespoke audiences based on our wide range of demographic, attitudinal and behavioral variables, over time and by countries/regions, click on the hyperlinks that accompany each chart.

Introduction

PRO Platform™Explore this data in PRO Platform /// Click here: Social Media > Reach > Members

GWI’s Market Reports track key digital behaviors and engagement rates in each of the 34 countries we survey, providing the very latest figures at a headline level as well as looking at trends over time and across demographics.

In this report, we focus on:

• How Indonesia compares to the global average across key digital measures and behaviors

• Device ownership and usage trends• Media consumption and gaming behaviors• Social networking trends• E-commerce and brand engagement

Unless otherwise stated, all figures are drawn from our Q2 and Q3 2016 waves of online research among 1,504 Indonesian internet users aged 16-64.

Where data appears from previous years, it is an average across all waves conducted throughout that year (each of which had a minimum sample size of 750 online adults).

Respondents complete an online questionnaire that uses stratified sampling techniques to ensure that they are representative of the internet population aged 16 to 64. As such, please note that all figures given in this report relate to the country’s internet users, not to its total population.

No individual can participate in our survey more than once a year, and we set quotas to ensure correct proportions in terms of gender, age and educational attainment. These quotas are established through extensive research across national and international data sources.

In addition to our Market & Region reports, we also produce the following:

FLAGSHIP REPORTSThe latest global insights and statistics on social platforms, device usage, online purchasing and entertainment.

AUDIENCE REPORTSIn-depth examinations of particular groups, assessing their most important behaviors and motivations as well as what sets them apart from the wider online population.

INSIGHT REPORTSDeep-dives into some of the most pressing topics for marketers, from traditional vs digital media consumption to audience measurement issues

TREND REPORTSTracking the stories of the moment, from ad-blocking and live streaming to VPNs and multi-networking.

INFOGRAPHICSOne-page visual summaries of key services, behaviors and audiences

Reports

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Access GWI’s library of 150+ reports and infographics.

Download detailed explanations of GWI’s Segmentations, data coverage and other topics.

Explore other questions/data-points not covered in this report.

PROFILING INTERNET USERS IN INDONESIA

UNDERSTANDING INTERNET PENETRATION

In this report, we give the latest estimates on internet penetration

(defined as the number of internet users per 100 people) from the

International Telecommunication Union, World Telecommunication/ICT

Development Report and database.

Please note that this will reflect internet penetration among the total

population, and that the figure among 16-64s is likely to be higher.

UNDERSTANDING GWI’S QUOTAS

To ensure that our research is reflective of internet users, we set

appropriate quotas on age, gender and education – meaning that we

interview representative numbers of men vs women, of 16-24s, 25-

34s, 35-44s, 45-54s and 55-64s, and of people with secondary vs

tertiary education.

To do this, we conduct research across a range of international and

national sources, including the World Bank, the ITU, the International

Labour Organization, the CIA Factbook, Eurostat, the US Bureau of Labor

Statistics as well as a range of national statistics sources, government

departments and other credible and robust third-party sources.

Because internet penetration rates can vary significantly between

countries (from a high of 90%+ in parts of Europe and North America to

lows of c.20% in parts of APAC), the nature of our samples is impacted

accordingly. Where a market has a high internet penetration rate,

its online population will be relatively similar to its total population

and hence we will see good representation across all age, gender

and education breaks. Where a market has a medium to low internet

penetration, its online population can be very different to its total

population; broadly speaking, the lower the country’s overall internet

penetration rate, the more likely it is that its internet users will be

young, urban, affluent and educated.Base: Internet Users aged 16-64 /// Source: GlobalWebIndex Q2 2016-Q3 2016

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TOP 15 INTERESTS% who say they are strongly interested in the following

* For more information

about how these

segments are defined,

PLEASE DOWNLOAD

THIS DOCUMENT

Question: Here is a list of topics that may interest you. Can you

please indicate which of these you are strongly interested in? /// Base:

Internet Users aged 16-64 /// Source: GlobalWebIndex Q2 2016-Q3 2016

Explore this data in PRO Platform /// Click here:

Attitudes and Lifestyle > Attitudes and Interests >

Personal Interests

Base: Internet Users aged 16-64 /// Source: GlobalWebIndex Q2 2016-Q3 2016

Explore this data in PRO Platform /// Click here: Attitudes and Lifestyle > Lifestyle Segmentation

IN ADDITION TO THE TOPICS COVERED IN THIS SECTION, OTHER METRICS AVAILABLE TO EXPLORE ON PRO PLATFORM INCLUDE:

LIFESTYLE SEGMENTATION% who fall into the following segments*

• Attitudes

• Professional Life

• Relationship Status

• Household Living Arrangement

• Number of Children

• Age of Children

• Pregnancy

• Sexual Orientation*

• Ethnicity / Nationality*

• Number of Cars Owned in Household

• Number of Properties Owned (Outright or with Mortgage)

• Types of Saving / Investment

• Approximate Value of Savings / Investments

• Responsibility for Grocery Shopping

• Interest in Further Education

• Voting Intention in Next Election (UK / US only)

• Participation in Sport

• Named Sports Leagues Followed

• Internet Usage Motivations

*Selected Markets Only

** Alcohol figures will not add up to 100% because this question is age sensitive and so not shown to all respondents

KEY DIGITAL STATS:INDONESIA VS GLOBAL AVERAGE

Global GlobalIndonesia Indonesia

Global GlobalIndonesia Indonesia

Global Global Indonesia

Global GlobalIndonesia Indonesia

Global IndonesiaGlobal Indonesia

01DEVICE

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Device Ownership

DEVICE OWNERSHIP% who say they own the following

As in most fast-growth markets, smartphones are now the most commonly owned devices in Indonesia, but PCs/laptops are not far behind. Ownership is near-universal among all demographic groups.

Among the other devices tracked by GWI, tablets still post a decent figure but, as we explore below, they appear to have lost some of their momentum in recent quarters. What’s more, 16-24s are outpaced by all of the older age groups (aside from 55-64s), and there’s a very strong correlation with household income.

Smart TVs post a figure of 22%, while 6% say they have a streaming stick. There’s not inconsiderable overlap between these two devices, however, with 18% of smart TV owners having a streaming stick too. Clearly, it’s not always the case that people have one or the other.

Elsewhere, wearable devices are still struggling to make an impact; currently, they remain too niche/expensive and are unable to offer functionality distinct enough from smartphones to court serious interest from consumers. It’s the top income quartile and 25-44s who are most likely to have purchased a smartwatch to date, but even here figures remain low.

NOTE: RESPONDENTS SEE THE FOLLOWING DEFINITIONS & ILLUSTRATIVE EXAMPLES

e-Reader: a digital reading device, e.g. Amazon Kindle, Kobo, Nook etc

Smart TV: a television that can connect to the internet

Smart wristband: a digital wristband which typically tracks your health and fitness levels. Popular examples include Nike Fuelband, Jawbone Up and Fitbit

Smartphone: an internet and app-enabled phone such as the iPhone, a BlackBerry or Android phones like the Galaxy S series

Smartwatch: a watch which allows you to connect to the internet and use apps. Popular smartwatches include Pebble, Sony Smartwatch, Samsung Galaxy Gear and the Apple Watch

Tablet device: e.g. an Apple iPad, Samsung Galaxy Tab, Microsoft Surface, Google Nexus tablet

TV streaming stick/device: a digital media device which streams web content to your TV set, e.g. Apple TV, Amazon Fire TV Stick, Google Chromecast, Roku Streaming Player

Question: Which of the following devices do you personally own? /// Base: Internet Users aged 16-64 /// Source: GlobalWebIndex Q2 2016-Q3 2016

Explore this data in PRO Platform /// Click here: Device Ownership & Access > Device Ownership & Usage > Device Ownership

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If we turn our attention away from the devices that people own towards those that they use to access the internet on a regular basis, it’s the rise of smartphones which is the key story. On a global level, PCs/laptops have been trending downwards very gently, but Indonesia breaks the mold here. In fact, this market is one of only two countries surveyed by GWI since 2012 to have seen small but consistent year-on-year increases in PC/laptop usage in this period. Where Indonesia is aligned with the global picture is for getting online via mobiles – smartphone usage has been enjoying consistently strong increases. As with the ownership figures seen above, then, it’s certainly not the case that PCs and laptops are being abandoned; even as mobiles continue to climb, these more traditional devices are retaining an important role.

Tablets had been on a similarly positive trajectory to mobiles but this has now begun to plateau as they become nice-to-have rather than essential devices. If Indonesia follows patterns seen in some other markets, we can expect the numbers getting online via tablets to begin to recede in the coming quarters.

Interestingly, PCs/laptops and tablets are the only devices where we see near parity in terms of the numbers who own them and who use them to get online on a regular basis. For smartphones, ownership is somewhat ahead of online access, suggesting that a minority of users still do not equate app usage with being online. The gaps are even more sizable for games consoles and smart TVs; here, it’s that many people might be unenthusiastic about using such devices to get online or remain unaware of their features / the potential of these devices as internet access points.

Internet Usage by Device

INTERNET ACCESS BY DEVICE% who use the following devices to access the internet

Question: In the past month, on which of the following devices have you accessed the internet either through a web browser or an app? /// Base: Internet Users aged 16-64 /// Source: GlobalWebIndex 2012-2016 (averages across all waves conducted in each year)

Explore this data in PRO Platform /// Click here: Device Ownership and Access > Device Ownership and Usage > Devices Used to Access Web

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Further confirmation for the ongoing rise of mobiles – as well as the enduring importance of traditional devices – comes from the amount of online time that they are capturing on a daily basis.

Since 2012, mobiles have experienced a striking rate of growth on this metric, standing at 3 hours 42 minutes (representing over 40% of all time spent online). Simultaneously, PCs/laptops/tablets have seen only a very small drop. As before, then, it’s not necessarily that these devices are being cast aside; instead, mobiles are

encouraging people to spend a longer amount of time online each day and are becoming much more prominent within daily internet behaviors.

Age-based patterns are hugely important here. Currently, 16-24s are spending an average of almost 4½ hours per day online via a mobile, with the numbers then falling in each successive age group to hit a low of about 1 hour 30 minutes among 55-64s. That the charge to mobile-first consumption is being led by the country’s younger users is thus beyond doubt.

Online Time by Device

TIME SPENT ONLINE: PCS / LAPTOPS / TABLETS VS MOBILES Number of hours:mins per day typically spent online via the following devices

TIME ONLINE ON MOBILE BY AGENumber of hours:mins per day typically spent online via mobile

Question: Roughly how many hours do you spend online via the following each day? /// Base: Internet Users aged 16-64 /// Source: GlobalWebIndex 2012-2016 (averages across all waves conducted in each year)

Explore this data in PRO Platform /// Click here: Media Consumption > Daily Time Spent on Media > Time Online on Mobile

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One of the newer questions within the GWI survey asks internet users to select their most important device in terms of getting online. Indonesia is in line with the global picture here, with mobiles occupying a strong first position.

In part, the picture in Indonesia is the result of its more modest internet penetration rate compared to other markets, which means its online population contains a relatively high proportion of younger consumers – a group who are much more likely to select a mobile as their most important device. Compared to more mature markets where internet penetration rates hover around the 90% mark, smartphones have had a major role in the formation of the internet infrastructure within Indonesia.

It’s long been known that devices such as PCs, laptops and smart TVs are shared by multiple users. But GWI’s data makes it clear that the same trend is in evidence for mobiles and tablets too.

Given their role as a device used principally inside the home, tablets are subject to high levels of sharing. Almost 60% of users say that someone else has use of their device too, with particular spikes for sharing among users who are in a relationship (especially those who are married) as well as those with children (particularly young ones). Despite normally being considered the most “personal” device of all, a significant group are sharing mobiles too.

That means the audiences across both tablets and mobiles are likely to be bigger than passively collected data would be able to indicate, providing clear caution against any automatic assumption that one device or browser = just one individual.

Device Importance Device Sharing

DEVICE IMPORTANCE% of internet users who say the following are their most important devices for getting online

Question: Which would you say is the most important device you use to access the internet, whether at home or elsewhere? /// Base: Internet Users aged 16-64 /// Source: GlobalWebIndex Q2 2016-Q3 2016

Question: Thinking about the devices you use to access the internet, can you please tell us how many, if any, other people use each device? /// Base: Mobile and Tablet Internet Users aged 16-64 /// Source: GlobalWebIndex Q2 2016-Q3 2016

Explore this data in PRO Platform /// Click here: Device Ownership and Access > Device Ownership and Usage > Device Importance

Explore this data in PRO Platform /// Click here: Device Ownership and Access > Device Ownership and Usage > Device Sharing

DEVICE SHARINGNumber of users for each device

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Further audience measurement issues arise from the use of Virtual Private Networks (VPNs)/Proxy Servers as well as privacy/data-related behaviors such as cookie deletion and ad-blocking.

Although some continue to see them as a relatively niche tool, it’s 49% of Indonesian internet users who say they’ve used a VPN when going online (with peaks among men and 16-34s and the bottom income quartile). What’s more, 64% these users are deploying VPNs at least weekly, with 18% being daily users.

Given that most VPNs will be based in a country different to that of the user – with the US being a particularly favored location – this trend creates serious issues for passive measurement techniques which rely on IP addresses or other geo-location tools in order to pinpoint a person’s location. When looking at audience analytics based on such information, one obvious consequence is that the global distribution of reported users is likely to be skewed to where the VPNs are located.

Alongside VPNs, other privacy-related behaviors have also come to prominence in recent quarters as consumers have looked to exercise greater control over their personal data and digital footprints.

The most common tactic at the moment by some margin is to use a private browsing window. However, 3 in 10 are using ad-blocking tools on their main computer, with similar

numbers blocking ads on their mobiles too. The likelihood of blocking ads drops as age increases, while men have a small lead over women.

Although passively collected data sometimes puts ad-blocking figures at a lower level than this, it’s important to note that GWI’s data reflects behaviors which are happening right now. Hence, they will be impacted by the ongoing proliferation of ad-blocking tools as well as the considerable global boost to consumer awareness which occurred in late 2015/early 2016 as a result of recurring and often high-profile media coverage. What’s more, GWI’s data tracks individuals rather than devices; if one household has an ad-blocker installed which is used by multiple residents, it’s not hard to see how you will get different results when talking about the number of devices vs the number of users. Finally, our figures do not suggest that these individuals are blocking every ad on

VPNs, Ad-Blocking and Online Privacy Measures

ENGAGEMENT WITH ONLINE PRIVACY MEASURES

Question: Which of the following things have you done in the last month when accessing the internet from your main computer? // Within the past month, have you used an ad-blocker on your mobile phone to prevent websites or apps from displaying ads when you visit them? // When you access the internet, do you ever do so using a VPN (virtual private network) or proxy server? /// Base: Internet Users aged 16-64 /// Source: GlobalWebIndex Q2 2016-Q3 2016

Explore this data in PRO Platform /// Click here: Device Ownership and Access > Privacy, Ad-Blocking and VPNs > Online Privacy Measures

Explore this data in PRO Platform /// Click here: Device Ownership and Access > Privacy, Ad-Blocking and VPNs > VPN/Proxy Usage

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every site they visit; rather, these people have used an ad-blocker on at least one occasion in the past month – with multi-device usage, whitelisting and selective usage of blocking browsers all meaning that people blocking ads in some contexts can still be exposed to them in others.

To understand why people are turning to tools such as VPNs and ad-blockers, GWI tracks a range of motivators. For VPNs, it’s the search for better entertainment content which takes precedence; with these tools allowing people to bypass geo-restrictions placed on certain content, many are accessing services not available in their own market (including the US versions of services such as Netflix, which continue to boast the best libraries of content).

MOTIVATIONS FOR USING VPNS AND AD-BLOCKERS% of VPN/Ad-Blocker users who cite the following as their main reasons

To date, the common consensus when it comes to ad-blocking has been that users are worried about their privacy or the over-personalization of ads. As our chart shows, however, it’s ad-overload which is the main factor here; blockers are most likely to say that ads are annoying, there are simply too many of them and that they get in the way. Concerns about personalization and privacy are certainly not insignificant, but it’s the poor user experience created by online ads which needs to be addressed the most urgently.

With a relatively small proportion in Indonesia currently blocking ads on mobile, issues surrounding data allowances and battery lives come lower down our list. However, even if we re-based this to show the views of mobile ad-blockers only, it’s still ad-fatigue which takes top spot. Quite simply, online ads need to get better and less intrusive if the industry wants to stem the rising tide here.

Question: Can you please tell us why you use VPNs or proxy servers when browsing the internet?/// Base: VPN users aged 16-64 /// Source: GlobalWebIndex Q2 2016-Q3 2016

Explore this data in PRO Platform /// Click here: Device Ownership and Access > Privacy, Ad-Blocking and VPNs > Motivations for Using VPNs/Proxy Servers

Question: Please could you tell us your main reasons for blocking ads while you use the internet? /// Base: Ad-Blocker Users aged 16-64 /// Source: GlobalWebIndex Q2 2016-Q3 2016

Explore this data in PRO Platform /// Click here: Device Ownership and Access > Privacy, Ad-Blocking and VPNs > Motivations for Ad Blocking

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With each quarter that passes, 4G continues to add more and more users. 4G adoption has been a lot slower in Indonesia compared to the global picture, having been level with 3G as late as Q3 2016 (globally, this was Q2 2015), but if Indonesia follows the global pattern here, then 4G will soon open up a considerable lead and will quickly become the dominant option.

Worth noting here is that a not insignificant 22% say that WiFi is the connection type they use the most often. So, whether for reasons of cost, heavy data usage, convenience or supply, the demand for WiFi-facilitated access is unlikely to wane even as 4G makes further gains.

Android is the most popular mobile operating system, with a dominant lead over second-placed Apple.

There are some distinctive demographic trends to note here, however. In particular, there’s a very strong income effect (perhaps as we might expect given the price-point of the iPhone); the top quartile is close to 2x as likely to use iOS compared to the bottom one. For Android, however, usage is relatively even by income.

4G vs 3G Mobile Operating Systems

MOBILE INTERNET CONNECTION TYPE% who most often use the following on their mobile

MOBILE OPERATING SYSTEMS% who use the following OS on their mobiles

Question: When using the internet on your personal mobile phone, what type of service/connection do you use most often? /// Base: Internet Users aged 16-64 /// Source: GlobalWebIndex Q3 2014-Q3 2016

Explore this data in PRO Platform /// Click here: Device Ownership and Access > Mobile Connection Type

Question: What operating system runs on your mobile? /// Base: Internet Users aged 16-64 /// Source: GlobalWebIndex Q2 2016-Q3 2016

Explore this data in PRO Platform /// Click here: Device Ownership and Access > Operating Systems and Web Browsers > Mobile Operating Systems

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In a direct reflection of Android’s success in Indonesia, it is Samsung which is the most commonly owned handset. It has a notable lead over iPhone, which takes second place (18%), followed by Nokia and ASUS. Most other brands then post relatively minor figures. But it’s worth bearing in mind here the recent shakeup in the Indonesian smartphone marketplace - as recently as Q1 2016 it was Nokia and Blackberry which completed the top three options here, with the iPhone in fifth position behind ASUS.

At present, the iPhone 5s is the most popular iPhone models, followed by the 6s Plus

Mobile Handset Brands

and 6s. That there is still 7% of the country’s internet users with a 4 or 5 model indicates how many could be tempted to upgrade to an iPhone 7.

For Samsung, the sheer number of models available to consumers has a clear impact on GWI’s figures; the Galaxy S4 comes top among the 20 handsets named in the GWI survey, but “Other” is the most popular option of all.

MOBILE HANDSET BRANDS% who own the following handsets

Question: Which of the following mobile brands do you currently own?/// Base: Internet Users aged 16-64 /// Source: GlobalWebIndex Q2 2016-Q3 2016

Explore this data in PRO Platform /// Click here: Device Ownership and Access > Mobile Brands > Current Ownership

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GWI DEVICE (Flagship Report)

DEVICE PREFERENCES (Insight Report)

DIGITAL VS TRADITIONAL MEDIA CONSUMPTION

(Insight Report)

THE MISSING BILLION (Insight Report)

AD-BLOCKING (Insight Report)

DEVICE SHARING (Trend)

INVISIBLE CONSUMERS (Trend)

MOBILE AD-BLOCKING (Trend)

MOBILE TIPPING POINT (Trend)

MULTI-DEVICE OWNERS (Trend)

STREAMING DEVICES (Trend)

TABLET FATIGUE (Trend)

VIRTUAL REALITY (Trend)

DEVICE SATISFACTION

PC / LAPTOP OPERATING SYSTEMS

TABLET OPERATING SYSTEMS

HTC MODELS

HUAWEI MODELS

iPHONE MODELS

LG MODELS

SAMSUNG MODELS

SONY MODELS

FREQUENCY OF VPN / PROXY USAGE

YOU CAN EXPLORE OTHER RELEVANT QUESTIONS ON PRO PLATFORM, INCLUDING:

TO READ ABOUT SOME OF THE THEMES COVERED IN THIS CHAPTER IN MORE DETAIL, PLEASE DOWNLOAD THE FOLLOWING CONTENT:

02MEDIA CONSUMPTION BEHAVIORS

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Media Segmentation

In a newer addition to the GWI survey, we categorize levels of engagement with cinema, television, radio, press, games consoles and social networks/services, assigning consumers to segments which range from non-users to heavy users.

Within Indonesia, it’s social networking which sees the strongest results for “heavy users”, indicating how integral this activity has become within daily behaviors. Nevertheless, Indonesia’s enduring fondness for linear/broadcast TV is reflected by the percentage for this option in the “high user” segment. Tellingly, linear TV also posts one of the lowest figures for “non-users”; compare that to “non-users” of online TV/streaming at almost 40% and the continuing importance of broadcast television is plain to see.

* To see how each segment is defined,

PLEASE DOWNLOAD THIS DOCUMENT

MEDIA CONSUMPTION SEGMENTATIONEngagement levels with the following forms of media*

Question: Roughly how many hours do you spend on/doing the following each day? /// Base: Internet Users aged 16-64 /// Source: GlobalWebIndexQ2 2016-Q3 2016

Explore this data in PRO Platform /// Click here: Media Consumption > Daily Time Spent on Media > Media Consumption Segmentation

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Daily Media Time

Each day, internet users spend almost 70% more time online than they do on linear TV, broadcast radio, gaming and print press combined.

But that linear TV composes such a considerable chunk of this daily media time is testament of this form of entertainment still retaining a central role within daily media portfolios, capturing almost 2½ hours daily and accounting for 18% of all media time. Online TV/streaming might now be grabbing a decent period of time each day, especially among younger users, but it has some distance to cover before it can become a real challenger. That said, the figures for online TV are likely to continue increasing and, in the context of streaming devices, mirroring and other similar behaviors, maintaining a pure distinction between linear vs online TV/streaming is going to get slightly anachronistic.

That social networking is a major force is further confirmed by these figures; 35% of time spent online is being devoted to this activity.

MEDIA CONSUMPTION BEHAVIORSNumber of hours:mins per day typically devoted to the following

Question: Roughly how many hours do you spend on/doing the following each day? /// Base: Internet Users aged 16-64 /// Source: GlobalWebIndex Q2 2016-Q3 2016

Explore this data in PRO Platform /// Click here: Media Consumption > Daily Time Spent on Media > Time Online on Mobile

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Changes in Media Consumption

Globally, recent years have seen a strong increase in the amount of time being spent online coupled with small declines for traditional/offline forms of media.

Broadly speaking, the same pattern is present in Indonesia, a market where online time is trending upwards and where linear TV is capturing slightly less time now than it was in 2012. However, figures can be subject to small year-on-year fluctuations and none of the decreases for traditional media have been sizable.

MEDIA CONSUMPTION BEHAVIORS OVER TIMENumber of hours:mins per day typically devoted to the following

Question: Roughly how many hours do you spend on/doing the following each day? /// Base: Internet Users aged 16-64 /// Source: GlobalWebIndex 2012-2016 (averages across all waves conducted in each year)

Explore this data in PRO Platform /// Click here: Media Consumption > Daily Time Spent on Media > Time Online on Mobile

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Second-Screening

SECOND-SCREENING ACTIVITIES% who were doing the following the lasttime they second-screened

Question: The last time you were watching TV and using the internet, which of the following were you doing? /// Source: GlobalWebIndex Q2 2016-Q3 2016

Explore this data in PRO Platform /// Click here: Media Consumption > Second-Screening > Second-Screen Devices

Explore this data in PRO Platform /// Click here: Media Consumption > Second-Screening > Second-Screen Activities

The widespread nature of second-screening is one of the major reasons why so much time is being spent online. In short, many media activities are happening simultaneously rather than sequentially as the vast majority of internet users go online while they watch television.

The rise of mobile is once again a key story, becoming the top device for this activity in Indonesia in 2015. Laptops and desktops have been trending downwards relatively consistently.

The challenges facing tablets are present once again here; although they had previously been enjoying strong increases for this behavior, they have now started to decline sharply.

As they second-screen, internet users are most likely to be social

networking. Given that chatting to friends posts strong results too, we have some context for why people are spending so much of their daily time on social networks and messaging services.

Particularly striking is that most second-screen activities are a distraction from the content being watched on the main screen, rather than a complement. It’s only small minorities who are interacting with content or looking for information related to what they’re watching.

In general, there’s a division between playful, social and TV-related second-screen behaviors (where younger age groups have the lead, although 55-64s post particularly strong scores for social networking here) and more “functional” activities such as emailing and reading the news (where older segments see relatively high engagement rates).

SECOND-SCREENING% who have recently second-screened via the following devices

Question: Thinking about when you’ve watched TV recently, which of the following devices have you also used to access the internet at the same time? /// Base: Internet Users aged 16-64 /// Source: GlobalWebIndex 2012-2016 (averages across all waves conducted in each year)

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Gaming Devices & Consoles

PCs/laptops are in top position as the most popular devices for gaming, but smartphones are just 1 percentage point behind. Although arguably most significant here is that only a small minority say they haven’t gamed via any device, underlining how ubiquitous this behavior has become.

GAMING DEVICES% who have used the following to play games

CONSOLE BRANDS% who use or are interested in purchasing the following console brands

Question: Thinking about the devices listed below, can you tell us which you have at home and have used to play games? /// Base: Internet Users aged 16-64 /// Source: GlobalWebIndex Q2 2016-Q3 2016

Explore this data in PRO Platform /// Click here: Device Ownership and Access > Gaming Devices & Activities > Devices Used for Gaming

Question: Thinking about the gaming devices listed below, can you tell us which you have at home and use for gaming and which you are interested in purchasing? /// Base: Internet Users aged 16-64 /// Source: GlobalWebIndex Q2 2016-Q3 2016

Explore this data in PRO Platform /// Click here: Device Ownership and Access > Gaming Devices & Activities > Console Brands

Among the 32% of consumers who say they play via games consoles, it’s the PlayStation 3 which is currently the leader by some margin (on 20%). The PS4 then takes second place, on 7%. However, it’s not that gamers aren’t interested in the next-gen offerings – look at future purchase consideration and it’s the PS4 which is by far the most popular, with more people potentially in the market for this console than for any other. Cost may be an issue here, but now that production of last-gen consoles is phasing out, together with steadily lower price-points for their successor consoles, these figures will likely climb in the near future.

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ONLINE ACTIVITIES

TV CHANNELS

VOD AND MUSIC SERVICES

PAY TV SUBSCRIPTIONS

PAID-FOR DIGITAL CONTENT

YOU CAN EXPLORE OTHER RELEVANT QUESTIONS ON PRO PLATFORM, INCLUDING:

GWI ENTERTAINMENT (Flagship Report)

CONSOLE GAMERS (Audience Report)

DIGITAL VS TRADITIONAL MEDIA CONSUMPTION

(Insight Report)

ONLINE TV (Insight Report)

LIVE STREAMING (Trend)

SECOND-SCREENING (Trend)

TO READ ABOUT SOME OF THE THEMES COVERED IN THIS CHAPTER IN MORE DETAIL, PLEASE DOWNLOAD THE FOLLOWING CONTENT:

03SOCIAL

31

Networking Behaviors

Question: On which of the following services do you have an account? // In the past month, which of the following things have you done on the internet via any device? Visited / used a social network // And which of the following services have you actively engaged with or contributed to in the last month? /// Base: Internet Users aged 16-64 /// Source: GlobalWebIndex Q2 2016-Q3 2016

Explore this data in PRO Platform /// Click here: Social Media > Reach > Members

Question: Roughly how many hours do you spend on social networks/services each day? /// Base: Internet Users aged 16-64 /// Source: GlobalWebIndex 2012 - 2016

Explore this data in PRO Platform /// Click here: Social Media > Time Spent on Social Networks/Services

Social networking remains a widely popular activity; virtually all (99%) Indonesian online adults say they are a member of at least one platform, with 100% having visited or used one within the past month (a result of some platforms such as YouTube not requiring people to sign up in order to use them).

In line with the rise of “passive networking” – a trend which has seen some people using networks without posting anything themselves – it’s a slightly lower 87% who say they have actively engaged with or contributed to a network within the last month.

Just as in many other markets, there’s evidence for the multi-networking trend in Indonesia; on average, internet users have accounts on 12 different networks/services/apps. Rather than abandoning existing platforms as other new ones come along, most people are therefore maintaining a presence across a wide variety of services.

The presence of this multi-networking trend helps to explain why users are spending almost 3 hours per day engaging with networks and messaging services. The ongoing migration of these activities to smartphones is also a big contributor here, with many people dipping in-and-out of social platforms throughout the day.

SOCIAL NETWORKING BEHAVIORS

NOTE: AVERAGE NUMBER OF ACCOUNTS IS CALCULATED

BASED ON ANALYSIS OF 49 NAMED NETWORKS + “OTHER”.

OF THE 49 INDIVIDUAL PLATFORMS, 22 ARE GLOBAL AND 27

ARE SPECIFIC TO CERTAIN COUNTRIES OR REGIONS

32

Motivations for Using Social Networks

The popularity of passive networking is also seen when we ask consumers why they are use social media – filling up spare time is the most popular reason here. But the growing role of networks as news and content platforms is evident, with 44% saying they use social networks to stay up-to-date with news or current events or to find funny or entertaining content.

Compared to their counterparts in other markets, Indonesian consumers over-index significantly for the majority of the 18 motivations tracked by GWI, with the exception of staying in touch with what their peers are doing and for using social media to follow celebrities.

People Followed

The role of social media sites in the online brand-consumer relationship is clear from our data on the types of people/organizations that people follow. Following people they know in real-life takes the top spot, but 44% of consumers are also following their favorite brands, with 38% reporting the same in relation to brands they are thinking of buying something from.

Elsewhere, in second-place it’s 50% who follow news/media organizations, further underlining the importance of social media as a source of news content. Internet users in Indonesia are much more likely to be following entrepreneurs, charities and bloggers.

TOP 15 MOTIVATIONS FOR USING SOCIAL NETWORKS% who use social networks for the following reasons

“FOLLOWING” BEHAVIORS ON SOCIAL MEDIA% who say they “follow” these types of people/organizations

Question: What are your main reasons for using social networking services? /// Base: Internet Users aged 16-64 /// Source: GlobalWebIndex Q2 2016-Q3 2016

Explore this data in PRO Platform /// Click here: Social Media > Reasons for Using Social Media

Question: Which of these people or organizations do you prefer to follow online via social media services? /// Base: Internet Users aged 16-64 /// Source: GlobalWebIndex Q2 2016-Q3 2016

Explore this data in PRO Platform ///Click here: Social Media > Types of People Followed on Social Media

33

Top Social Platforms

Question: On which of the following services do you have an account? // Which of the following sites/applications have you visited / used in the past month via your PC/Laptop, Mobile or Tablet? // And which of the following services have you actively engaged with or contributed to in the last month?/// Base: Internet Users aged 16-64 /// Source: GlobalWebIndex Q2 2016-Q3 2016

Explore this data in PRO Platform /// Click here: Social Media > Reach > Members

Overall, it’s clear that Facebook retains a central role in the social media landscape of Indonesia. It has the most members, but it’s YouTube which posts the highest results for visitors and contributors. What’s particularly striking is the near parity between the membership and visitor numbers for Facebook; clearly, the vast majority of people with an account are visiting/using the site in some form each month.

As our chart shows, YouTube enjoys a boost when it comes to visitors/users; it is the only service tracked in our chart where this metric is higher than membership (a result of many users not logging in when they visit the site, or not having an account at all). In terms of overall reach, it also means that it is comparable to Facebook. Nevertheless, it’s important to keep in mind that, along with WhatsApp, Facebook typically scores the best numbers for “more than once a day” when we ask people how frequently they visit various social platforms. Elsewhere, Indonesia’s label as the ‘Twitter Capital’ is well-founded, this market posts the highest figures for membership and visitation for Twitter compared to other markets.

Although GWI’s global data shows that Instagram’s claim to have overtaken Twitter is not borne out in all markets, our data shows that this transition has taken place among Indonesia’s younger internet users, where the photo-sharing service is now ahead.

Elsewhere, Snapchat might post a relatively modest figure among the total online population but its popularity among younger demographics remains considerable. Look just at teens (defined here at 16-19s) and usage rates jumps to over 50%.

TOP 10 SOCIAL NETWORKS/PLATFORMS% who fall into the following groups

Across the biggest social platforms, GlobalWebIndex monitors engagement in three main ways:

• MEMBERS - People who say they have an account on the platform in question.

• VISITORS / USERS - People who say that, within the last month, they have visited or used a social network’s website or app via any device.

• ENGAGERS / CONTRIBUTORS - Members who say that, within the last month, they have actively engaged with or contributed to the platform in question.

These metrics are applied consistently across all services, which allows like-for-like comparisons, but it’s important to note that these types of engagement are reported from the perspective of the consumer. As a result, they will only class themselves as an engager or contributor if they believe that to be the case, and that can be quite different to the criteria which might be used in passive techniques to qualify the same audience. Given that networks have differing definitions for “active users” or “MAUs”, we do not track this explicitly. Broadly speaking, however, our “Visitor / User” metric is likely to be the closest equivalent to how most networks would define their “active users”.

34

Engagement Over Time

Over the last few years, the major networks have had to work harder for the attention of their users as new services (and messaging apps) have entered the scene. The challenge that this has created for players like Facebook and Twitter is clear from our chart. Both of these services have experienced considerable and consistent drops in engagement figures during this period.

But it’s the smaller, newer or more specialized services which have enjoyed the clearest growth. Instagram has been a key player here, with around 2.5x as many people engaging with and contributing to it in 2016 as there were back in 2013. LinkedIn, Pinterest and Tumblr have also seen rises.

Key to note within all this is that people are still visiting the bigger sites like Facebook and Twitter, which means ads can still be served and profits generated accordingly. What’s changing is that some people are turning to a wider range of platforms in order to post comments or share content. Facebook is still the hub that underpins and drives social activities, but its challenge is to keep people posting content rather than simply looking at things uploaded by other users or by organizations.

ENGAGEMENT OVER TIME% who say they have engaged with / contributed to the following platforms

Question: Which of the following services have you actively engaged with or contributed to in the last month? /// Base: Internet Users aged 16-64 /// Source: GlobalWebIndex 2013-2016 (averages across all waves conducted in each year)

Explore this data in PRO Platform /// Click here: Social Media > Reach > Engagers / Contributors

35

Apps

As networking continues to migrate to mobile, it’s clear that social apps are where the future battleground lies – not least as so many services are now wholly or mainly geared towards usage on smartphones.

Within this ultra-competitive space, Facebook is in a very strong position in Indonesia, having the top two messaging services as well as the most used networking app overall.

Globally, for some apps tracked in the chart, engagement among young users can be much higher than the headline figures for the general population. While this may not be as pronounced in Indonesia as it is globally, teens still hold a 6-point advantage for using Snapchat. However, in general we see similar figures among these two groups.

TOP 20 SOCIAL AND MESSAGING APPS% who have used the following within the last month

Question: Which of the following apps have you used in the past month? /// Base: Internet Users aged 16-64 /// Source: GlobalWebIndex Q2 2016-Q3 2016

Explore this data in PRO Platform /// Click here: Apps > Named Apps Used

36

Top Platform-Specific Behaviors

Across the 20 or so platform-specific behaviors tracked in the GWI survey, Facebookers in Indonesia are most likely to be clicking a “like” or “reaction” button – a behavior which is providing Atlas with ever more precise information about people’s likes and dislikes.

Our data makes clear the importance of video on Facebook; 56% of Facebookers say they have watched one within the last month. This is likely to remain a key area of competition in the year ahead as the service aims to top YouTube as well as beat off the video challenge being mounted by names like Snapchat and Twitter.

TOP 5 ACTIONS ON FACEBOOK, TWITTER, INSTAGRAM AND SNAPCHAT% who did the following last month

Question: Thinking about when you use Facebook / Twitter / Instagram / Snapchat, can you please tell us if you have done any of the following within the last month? /// Base: Facebookers / Twitterers / Instagrammers / Snapchatters aged 16-64 /// Source: GlobalWebIndex Q2 2016-Q3 2016

Explore this data in PRO Platform /// Click here: Social Media > Platform-Specific Behaviors > Facebook Actions

That almost half of Indonesia’s Facebookers say they’ve logged in without posting/commenting on anything is more evidence for the move towards more “passive” forms of networking. This is a trend across all the networks tracked here, with many of the top behaviors on all services comprising those which involve users interacting with content uploaded by others rather than contributing anything themselves. In line with the stories of a “Context Collapse” that have appeared in the media, it’s clear that many users are becoming less keen on sharing personal posts on mainstream sites, and have shifted some of this activity to smaller services or apps where they have more control over the audiences which will view them. That said, Indonesian social networkers are more ‘active’ than those in many other markets.

37

FACEBOOK MESSENGER ACTIONS

WECHAT ACTIONS

WHATSAPP ACTIONS

USAGE FREQUENCY

YOUTUBE ACTIONS

YOU CAN EXPLORE OTHER RELEVANT QUESTIONS ON PRO PLATFORM, INCLUDING:

TO READ ABOUT SOME OF THE THEMES COVERED IN THIS CHAPTER IN MORE DETAIL, PLEASE DOWNLOAD THE FOLLOWING CONTENT:

GWI SOCIAL (Flagship Report)

INSTAGRAMMERS (Audience Report)

SNAPCHATTERS (Audience Report)

MESSAGING APP ENGAGEMENT (Insight Report)

SOCIAL MEDIA ENGAGEMENT (Insight Report)

SOCIAL NETWORKING MOTIVATIONS (Insight Report)

MULTI-NETWORKING (Trend)

PASSIVE NETWORKING (Trend)

SOCIAL COMMERCE (Trend)

04COMMERCE & BRAND ENGAGEMENT

39

Brand Discovery

At the very start of the purchase journey, consumers are most likely to hear about new products or services via TV ads and search engines – further underlining the important role that linear television still plays within daily media behaviors. Close behind are recommendations via social networks.

Demographic variations are important here. Women have a more pronounced lead for word-of-mouth recommendations, while older groups place a higher premium on search.

Compared to other markets, consumers in Indonesia over-index for most of the brand discovery sources tracked in our chart, with posts from expert bloggers and recommendations on social networks seeing some the highest over-indexes.

TOP 15 SOURCES OFBRAND / PRODUCT DISCOVERY% who say they discover products via the following sources

Question: In which of the following ways are you most likely to find out about new brands, products, or services? /// Base: Internet Users aged 16-64 ///Source: GlobalWebIndex Q2 2016-Q3 2016

Explore this data in PRO Platform /// Click here: Marketing Touchpoints > Brand Discovery/Engagement > Brand Discovery

40

Online Research Channels

Further along the purchase journey when consumers are aware of a brand/product and are looking for more information, they are most likely to turn to search engines (a behavior which is more popular among older age groups). Interestingly, it’s the same for social networks – the older someone is, the more likely they are to turn to this channel to undertake research (although we do see a drop among 55-64s). As a result, there’s likely to be an increasing blurring of the lines between search and social among consumers here.

Across all of the options tracked in the GWI survey, blogs and Q&A sites are the places where those in Indonesia over-index the most compared to the global average – further confirming the view that consumers in this market are fairly receptive to some of the newer or more digitally focused channels.

Brand sites remain an important go-to point; their appeal is strongest among older age groups and men.

TOP 10 ONLINERESEARCH CHANNELS% who say they use the following when looking for more information about a brand / product

Question: Which of the following online sources do you mainly use when you are actively looking for more information about brands, products, or services? /// Base: Internet Users aged 16-64 /// Source: GlobalWebIndex Q2 2016-Q3 2016

Explore this data in PRO Platform /// Click here: Marketing Touchpoints > Online Purchase Journey > Online Product Research

41

Online Buying

Online commerce is an absolutely mainstream activity; 83% of online adults say that they’ve recently bought a product on the internet. 25-34s, women, and the top income quartile are the most likely to be buying online.

Currently, PCs and laptops remain integral to this process; as our data shows, almost everyone who is purchasing online is making at least some of their transactions on these devices; highly relevant here is that PCs and laptops are still perceived by many to offer the best functionality and security when it comes to purchasing. But it’s now almost 7 in 10 shopping via mobiles, making Indonesia the third most likely market tracked by GWI to be shopping on mobile behind China and India.

In terms of drivers, it is free delivery which is most likely to convince someone to complete a purchase online; this option out-scores all others by a considerable distance and is the top motivator in all the principal demographic splits.

Elsewhere, social commerce remains a rather niche proposition; just 18% in Indonesia say that a “buy” button would make them more likely to purchase, putting it at the very bottom of the list, but this is one of Indonesia’s top over-indexes compared to the global average.

ONLINE BUYING & TOP 5 PURCHASE DRIVERS% who have bought a product online in the last month

% who say the following would make them more likely to purchase a product online

Question: Which of the following activities have you done online in the last month? Purchased a product online /// Base: Internet Users aged 16-64 /// Source: GlobalWebIndex Q2 2016-Q3 2016

Question: When shopping online, which of the following things would increase your likelihood of buying a product? /// Base: Internet Users aged 16-64 /// Source: GlobalWebIndex Q2 2016-Q3 2016

Explore this data in PRO Platform /// Click here: Online Activities and Behaviors > Online Activities in Last Month > Activities via Any Device

Explore this data in PRO Platform /// Click here: Marketing Touchpoints > Online Purchase Journey > Online Purchase Drivers

42

Reviews Brand Advocacy

It’s 6 in 10 in Indonesia who regularly post online reviews of products, services or companies, making this one of the many markets where there are more people posting reviews than there are looking for them during the purchase journey. Helping people to cut through this noise is therefore key. Currently, it’s 16-34s and the top income quartile who are the most vocal.

Of the topics that people are most likely to post about, it is tech, computers and mobiles occupying the top three spots. Perhaps most significant of all is that an impressive 78% say they have talked about at least one of the 30 discussion topics listed in the GWI survey.

There are two factors which are more likely than any others to convince consumers to become brand advocates: high-quality products and rewards. Both these incentives are well-received by all age groups (although their appeal does rise in line with age).

Compared to their counterparts in other markets, Indonesian consumers over-index notably for promoting a brand when something enhances their online reputation and for having insider knowledge about the brand or its products.

TOP 10 REASONSFOR BRAND ADVOCACY% who say they would advocate a brand online for the following reasons

Question: Which of the following activities have you done online in the last month? Posted a review of a product, service or company // Which of the following products, services or topics have you posted opinions about online in the past month? /// Base: Internet Users aged 16-64 /// Source: GlobalWebIndex Q2 2016-Q3 2016

Explore this data in PRO Platform /// Click here: Commerce > Products/Topics Talked About Online

Question: What would most motivate you to promote your favorite brand online? /// Base: Internet Users aged 16-64 /// Source: GlobalWebIndex Q2 2016-Q3 2016

Explore this data in PRO Platform /// Click here: Marketing Touchpoints > Brand Discovery/Engagement > Brand Advocacy

43

BRAND ROLE

ONLINE BRAND INTERACTIONS

B2B PURCHASE INFLUENCERS

YOU CAN EXPLORE OTHER RELEVANT QUESTIONS ON PRO PLATFORM, INCLUDING:

TO READ ABOUT SOME OF THE THEMES COVERED IN THIS CHAPTER IN MORE DETAIL, PLEASE DOWNLOAD THE FOLLOWING CONTENT:

GWI COMMERCE (Flagship Report)

TV BUYERS (Audience Report)

VACATION BUYERS (Audience Report)

BRAND ADVOCACY (Insight Report)

BRAND DISCOVERY (Insight Report)

PURCHASE DRIVERS (Insight Report)

44

MINOR PURCHASES

• BOUGHT IN LAST MONTH

• BOUGHT ONLINE

• RESEARCHED ONLINE

A gift for someone

Baby products

Beauty products

Beer

Books

Chocolate

Clothes

Coffee

Deodorant

Films

Fragrances / perfume / aftershave

Healthcare, medicine and pharmaceutical products

Laundry detergent / Fabric conditioner

Music

Non-food household products e.g. cleaning

products

Packaged food / ready meals

Personal accessories e.g. watches / handbags etc

Pet food

Shampoo / conditioner / other hair products

Shoes

Skincare / moisturizer

Snack foods

Soft drinks / bottled water

Sports clothing / equipment

Travel e.g. plane tickets / hotel room

Wine / spirits

MAJOR PURCHASES

• BOUGHT IN LAST SIX MONTHS/LONGER AGO

• PLANNING TO PURCHASE IN NEXT 6 MONTHS

• BOUGHT ONLINE

• RESEARCHED ONLINE

2-in-1 laptop / tablet device

Broadband / high-speed Internet

Car / automobile

Computer games / video games

Desktop computer

Digital camera

Dishwasher

Flat-screen TV

Furniture

Games console

Headphones / earphones

Home appliances (white goods)

e.g. fridge, washing machine

Housing / property

Jewellery

Laptop (bigger than 10 inch screen)

Mobile phone

Motorcycle

Tablet device

Vacation (abroad)

Vacation (in my own country)

Vacuum cleaner

FINANCIAL PRODUCTS

• BOUGHT IN LAST SIX MONTHS

• PLANNING TO PURCHASE IN NEXT 6 MONTHS

• BOUGHT ONLINE

• RESEARCHED ONLINE

Annuities

Automotive insurance

Bonds

Contents insurance

Foreign currency exchange services

Health insurance

Home-owners insurance

Life insurance

Mortgage

Mutual / managed investment funds

Premium current account

Short-term loans (Less than 30 days)

Travel insurance

DIGITAL / ONLINE CONTENT

• BOUGHT IN LAST MONTH

A subscription to an online version of a magazine

Dating service

Digital gifts (e.g. stickers, badges, avatars, etc.)

E-book

In-app purchases

(e.g. in-game upgrades, add-ons, etc.)

Mobile app

Mobile game

Movie or TV download

Movie or TV streaming service

Music download

Music streaming service

News service

Premium web service e.g. email / online storage

Software Package (e.g. Microsoft Office, Adobe

Photoshop etc.)

Study programs / learning materials

ON PRO, YOU CAN LOOK AT PURCHASE AUDIENCES FOR ANY OF THE FOLLOWING PRODUCTS:

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www.globalwebindex.net

T + 44 207 731 1614 /// E trends@globalwebindex.net

/// A 3 Dorset Rise, London, EC4Y 8EN, UK

Jason ManderChief Research Officer

E jason@globalwebindex.net@thejasonmander

Katie YoungTrends Analyst

E katie@globalwebindex.net@katie_young11

Felim McGrathTrends Manager

E felim@globalwebindex.net@felimmcgrath

Chase BuckleTrends Analyst

E chase@globalwebindex.net@Chase_Buckle