indonesia digital habits study

Digital Habits of the Urban Indonesian Consumer

September 2015

Indonesia: A Key Market for ‘the Next Billion’

Digital usage (from Consumer Barometer*)

Internet usage: 41.2%PC category: 15.4%Mobile phone: 85.2%Smartphone: 43.3%

population

250m (world’s #4)

GDP

$900b

of islands1,000s

Top 10 biggest cities by population size(from 2010-2020)

20102020 (estimate)

Sumatra Kalimantan

Java

Sulawesi

1.9m

2.4m

1.4m

1.7m

11.9m

11.9m

1.4m

1.7m

0.8m

1.1m

1.7m

1.9m

2.8m

3.0m

0.8m

0.9m

1.5m

2.0m Population size (million)

Medan

Palembang

Tangerang

Bogor

Jakarta

Bandung Malang

Surabaya Makassar

PapuaMoluccas

Semarang

1.6m

2.0m

Source: World Bank, Euromonitor, Google Consumer Barometer * www.consumerbarometer.com

http://www.consumerbarometer.com

Study Background & Methodology

Understand the accurate user profile and media consumption data in urban Indonesia

Capture detailed online behaviour and purchase journey especially through mobile devices using a integrated behavior tracking method

Module 1 Establishment surveyFace-to-face interviews to understand media landscape and consumer media consumption in urban area

Module 2 Passive meter trackingMeter-based in-depth behavior tracking to capture consumer journey in 3 key product categories (travel, apparel, hair-care goods)

Background Methodology

Age 18-55Have at least one connected deviceOpt-in panel with customers

Methodology DetailsModule 1

Establishment surveyModule 2

Passive meter tracking

• Installing tracking meters “GfK LEOtrace®” (PC, smartphone, tablet) to opt-in samples of the establishment survey

• n=600 (opt-in samples aged 18-55)

• Collecting behavioral data (site visit, app usage, etc.) and tracking purchase activities for 3 categories via quick mobile survey for 3 months

• Capturing purchase journey during the field time by mobile diaries and exit survey

n=600 opt-in sub-samples

• Face-to-face interviews in 5 urban cities (Jakarta, Bodetabek, Bandung, Semarang, Surabaya)

• n=2,500 (urban population representative)

• Collecting user data on demographics, media consumption, attitudes, brand preference/purchasing, etc.

n=2,500 in urban areas

Mobile device usage is ubiquitous with a wide variety of apps and websites used throughout the day. Communication is a highlight of smartphone use.

Executive Summary

Smartphones have become an indispensable part of daily lives in Indonesia. Smartphone usage is currently at 61% in urban cities.

Smartphones have transformed consumer behaviour. Users make as many 46 app/sites visit a day through interaction with 16 different properties.

Online search is a very important part of the purchase process and plays a key role in decision making.

The purchase journey is complex but in most cases start with search. The pathways varies by product category but final purchase is made still predominantly offline in Indonesia.

1. Smartphones are indispensable part of Indonesians’ daily lives

Module 1: Establishment survey

Smartphones are used widely and heavily throughout the day

Usership*

61%

5.5 Hoursper day Usership* 17%

1.8Hoursper day

Source: Google GfK Indonesia Digital Tracking Study, Nov - Dec 2014.Base: All Respondents n = 2500

* Sample base in this section:Indonesian consumers in 5 big cities (Jakarta, Bodetabek, Bandung, Semarang, Surabaya) participating in Module 1 (establishment survey)

Smartphone

PC

Smartphone usage is high throughout the day, peaks at noon and eveningMedia consumption through the day

Early morning Morning Noon Afternoon Early evening Evening Midnight

Source: Google GfK Indonesia Establishment Study, Nov – Dec 2014.Base: All Respondents n = 2500 ; A1. At what time do you usually use these devices/media on weekdays (Monday to Friday)? A1.1 At what time do you usually use these devices/media on Saturday? A1.2 At what time do you usually use these devices/media on Sunday?

Smartphones dominate with regard to all online activities except productivity

Activity share across devices – Weekdays (%)

Entertainment

Information-seeking

Shopping

Communication

Productivity

Social

Source: Google GfK Indonesia Establishment Study, Nov – Dec 2014.Base: All Respondents n = 2500 ; F1, F2, F3, F4, F5 At what time do you usually use these activities that you do with your device on weekdays (Monday to Friday)?

2. Online usage is ubiquitous

Module 2: Passive meter tracking

Online usage is ubiquitous with a wide variety of apps and sites used throughout the day

Source: Google GfK Indonesia Digital Tracking Study, Nov 2014 - Feb 2015.Base: Total users tracked: n = 633

Total visits to apps and sites per day

46Unique apps / sites

used per dayDays active in a

month

16 26

* Sample base in this section:Indonesian consumers in 5 big cities (Jakarta, Bodetabek, Bandung, Semarang, Surabaya) participating in Module 2 (passive tracking)

App usage much higher among the younger group and also have higher engagement

36%18-26yrs old

# hours spent on device per active day

1.8 3.8 5.3

27

26

27

# active daysin a month

50

42

43

# App / domain visits per active day

43%27-36yrs old

27%37-46yrs old

Source: Google GfK Indonesia Digital Tracking Study, Nov 2014 - Feb 2015.Base: Total users tracked: n = 633

1.7 4.6 6.2

0.3 4.2 4.9

Age Group

Mobile usage is highest during commuting and lunch, PC usage stays low throughout the day

Smartphone

Tablet

PC

CommutingLunch

Commuting

Site / App Usage by Device

Source: Google GfK Indonesia Digital Tracking Study, Nov 2014 - Feb 2015.Base n = 633 ; Smartphone users: n = 586 | Tablet users: n = 51 | PC users: n = 20

Communication and Productivity categories lead online usage. Search & Entertainment large on PCs

Share of visits

Reach of Categories Share of visits By device

Usage by category of apps / websites

Source: Google GfK Indonesia Digital Tracking Study, Nov 2014 - Feb 2015.Base n = 633 ; Smartphone users: n = 586 | Tablet users: n = 51 | PC users: n = 20

3 . Online research is a very important part of the purchase process


Offline touchpoints are important but online sources are also becoming key in product research

Reach of offline touchpoints (claimed in surveys) Reach of online touchpoints (passive tracking)

Source: Google GfK Indonesia Digital Tracking Study, Nov 2014 - Feb 2015.Offline touchpoints: Base: All Respondents n = 2500 Online touchpoints: Total users tracked: n=245 (Travel), n=379 (Apparel), n=297 (hair-care) (weighted)

Media touchpoints in purchase journey

Hair-care (%)Apparel (%)Travel (%)

Aggregator, Search and Booking sites are actively accessed

Reach of categories (%) TouchpointsAvg. # differentvisited per user

VisitsAvg. # in category

per user

Time (mins)Avg. time spent oncategory per user

Share of visits (%)

Source: Google GfK Indonesia Digital Tracking Study, Nov 2014 - Feb 2015.Total users tracked: n=245 (Travel), n=379 (Apparel) , n=297 (hair-care) (weighted)

Online media visits: Travel Category

Consumers spend substantially more time on retailer sites and search engines



per user


Share of visits (%)


Online media visits: Apparel Category

In hair care generally online sites reach is still low, search engines most prominent



per user


Share of visits (%)


Online media visits: Hair-care Category

4 . Purchase journey is complex but in most cases start with search


Travelers exhibit complicated and fragmented online journey but search is a key startpoint

Online journey map for Travel purchase

N.B. 1) Nodes are sized by reach of the touch point; 2) Chart shows important transitions only: 3) The thickness of the line shows the usage intensity of these transitions; 4) Only websites with reach >5 users and PIs > 3 are displayed.Source: Google GfK Indonesia Digital Tracking Study, Nov 2014 - Feb 2015.n=106 Panelists and 5.967 relevant logs (at least 2 Touchpoints visited and >= 5 relevant Events)

Start

Airline Company

Travel Aggregator and Information

Social Media

Travel Booking

Transportation

Search Engine

Air Asia .comGaruda Indonesia .com

Lion Air .com

PegiPegi.com

Agoda.com

Traveloka .com

Social network

Wego.com

Aneka Tempat Wisata.com

Blogspot .com

Travel Detik.com

Zomato .com

Lewat Mana .com

Ini Tempat Wisata .com

Trip Advisor.com

Aroengbinang Travelog .com

Kompas Travel.com

TripAdvisor App Trackpacking .com

Wikimapia .com

Kereta-api .com

Google .com

Bali Getaway Indonesia .com

Nusa Trip.com

Tiket.com

Booking.com

Apparel journeys are more simple and concentrated in retailer sites but again linked to search

Online journey map for Apparel purchase

Start

PinkEmma.com

Bukalapak.com

Kaskus.com

Blanja.com

Berrybenka.com

Lazada.comZalora App

Tokopedia.com

OLX.com

Zalora.com

Social network

Information sites

Social Media

Retailer

Search Engine

Google.com


Hair-care journeys when they happen are complex and strong on info site , but linked to search

Online journey map for Hair-care purchase

Start

Information sites

Social Media

Retailer

Brand sites

Search Engine

Olshopmurah.com

NyunyuHaiStyle.comFemaledaily.com

Tokopedia.com

Elevenia.com PomadeIndonesia.com

jual-pomade.com

murrayspomade.com

Google.com

Social network

AylaCream.com

Hairfashion.com

MyLovelyHair.com

Glamrs.com

Blogspot.com

Zonakesehatan.com

carakata.blogspot.com Berjibaku.com

Dove.com

Hair styletrends.com


Implications for Marketers

Consumers in urban Indonesia have fully moved to mobile

All businesses need to follow consumers onto mobile

Search is a key component of a successful mobile strategy

Businesses should create a seamless experience between online and offline

The purchase journey is complex. Businesses need to ensure that they are present at all stages of the journey

Sample details

Cities covered Occupation

40%27 – 36

37 – 46 46 plus

18 – 2632%

20% 9%

51%

49% low(<2-3mn)

13% 53%high

(5-15mn+)

33%

Gender Age SEC

Monthly Personal Income (IDR)

8%Student

27%Breadwinner

24%Housewife

10%Senior Citizen

17%First-jobber

15%Working

Mom

Jakartan=500 Semarang

n=507

Bandung n=449

Surabaya n=553

Bodetabekn=507

Urban middle class (A/B/C1) aged 18-55 across 5 big cities in Indonesia

Establishment Survey (Module 1) : Sample Overview

medium(3-5mn)

Passive Meter Tracking (Module 2) : Sample Overview

Cities covered Occupation

36%27 – 36

37 – 46 46 plus

18 – 2634%

27% 3%

46%

54% low(<2-3mn)

13%medium

(3-5mn)

81%high

(5-15mn+)

6%

Gender Age SEC

Monthly Personal Income (IDR)

Jakartan=276 Semarang

n=40

Bandung n=63

Surabaya n=76

Bodetabekn=179

Bulk of the sample from Jakarta and Bodetabek

15%Student

32%Breadwinner

15%Housewife

3%Senior Citizen

19%First-jobber

17%Working

Mom

Passive Meter Tracking Sample Composition

Qualification:

• PC: > = 3 active days• Smartphone : >= 6 active days • Tablet: >= 7 active days

Sub sample qualification:

• Those expecting purchase in each product category in next 3 months

• Samples with extremely low activity during the whole field time (less active days than the tenth percentile) are excluded

Reflects the Indonesian population in 5 big cities

(n=633)

(n=2,500)

Hair-care sub-sample

(n=297)

Apparelsub-sample(n=379)

Travelsub-sample

(n=245)

Establishmentsurvey

Internetusers

Trackingsamples

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