Advertisers In Indonesia Adapting To New Data Privacy Rules Through Alternative Ad Targeting

The Future of Mobile Advertising in Overcoming Data and Identity Outages (photo: Inmobi)

JAKARTA - InMobi, a leading provider of content, monetization and marketing technology that helps business growth, Friday, June 24, released the results of a study conducted by Forrester Consulting on the “Future of Mobile Advertising in Tackling Data” (Future of Mobile Advertising in Tackling Data). and Identity Deprecation).

This study examines the impact of data privacy on advertising in Indonesia, offering an in-depth understanding of the readiness of businesses and their plans for action in the midst of evolving consumer data privacy.

This study found that of a number of companies in Indonesia that are engaged in advertising, 17% are in the early stages and 46% are in the intermediate stages regarding the maturity of consumer data privacy management practices. Only 37% of companies claim maturity in balancing consumer data privacy and personalized customer engagement, and in delivering meaningful solutions to their clients.

The report also reveals that 90% of respondents (consisting of business decision makers) in Indonesia believe that increasing reach and conversions to increase profitability are very important priorities in marketing.

This then concerns the challenges related to privacy, where 65% of respondents recognized the ability of users to block their identifier for advertisers (IDFA) as a major marketing challenge.

Talking about the report, Rishi Bedi, Managing Director for Asia Pacific at InMobi, commented, “The advertising ecosystem in Indonesia shows a moderate level of readiness towards data and identity. Publishers in the region are more advanced in their consumer data privacy practices than brands and media agencies who appear to be struggling to build a culture that values privacy and follows the rules. Gaining executive support for data management and good governance programs can help businesses address these challenges.”

This study shares additional insight into advertisers' concerns about the new data privacy guidelines, as well as their perceptions of alternative future ad targeting options:

63% of respondents highlighted that the main concern for the gradual elimination of advertising identity is the availability of quality data to build consumer personas or understand economic attributes. 59% of respondents expressed concern over the inability to take action on buyer and customer data. 46% of respondents already use contextual targeting as an alternative advertising method to serve personalized messages to consumers based on demographics, preferences and in-app behavior. 35% of respondents engage in rules-based targeting that allows businesses to switch app experiences based on “rules” such as user geography, operating system, browser, device and more.