Japanese adtech company FreakOut enters Indonesia by offering ‘native ads’ as a solution to digital advertising’s biggest pain point
Tokyo-based adtech company FreakOut recently announced its entry into the Indonesian market, with a massive Star Wars-themed launch party in South Jakarta.
Although the size of the digital advertising market in Indonesia is small, the company is excited about the prospects of the market.
“According to an eMarketer research (about) the media buying space in Indonesia, digital advertising contribution will rise to 25.1 per cent and Internet mobile advertising to 13.7 per cent in 2019. The total advertising market outcome in 2019 will be about US$19.58 billion,” Erdian Tomy Malewa, Country Business Development for FreakOut Indonesia, said in an e-mailed response to e27.
As part of its strategy in Indonesia, FreakOut has signed a global co-operation agreement with Japanese messenger app LINE. As per this, FreakOut’s product Hike will be the only advertising platform used within LINE’s platform.
Indonesia being the largest market for LINE after Japan, Thailand and Taiwan, FreakOut believes that the country will have a positive impact on the market.
Malewa describes the partnership with LINE as FreakOut’s opening shot to enter the market, though he declined to share more details.
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During FreakOut’s launch event, its Supply Partner Manager Sihkami Denting pointed out some of the greatest challenges faced by digital advertisers.
“The ugly truth is that in the world of advertising, audiences basically dislike ads. That’s why AdBlocker gets attention right now. And this fact needs to be challenged in order that a better advertising ecosystem can manifest itself,” she explained.
Additionally, there is also a phenomenon called ‘ad blindness’ where users train themselves to ignore ads, that even 50 per cent of ad clicks are believed to be accidental. So, it is important for digital advertisers to balance between profitability and good user experience.
What FreakOut offers is the use of native ads as a solution to ‘create a better and healthier advertising ecosystem for publishers, advertisers, and users’.
“Native ads are capable of promoting brands through digital marketing in a better and smarter way … [It] could help publishers earn more revenue through their online advertising,” explained Tomohiro Yasukuna, CEO of FreakOut Indonesia.
Based on the company’s case study in Japan, native ads can give advertisers benefits such as high click-through rate (CTR), low bounce rate, and has the highest capability to drive unique users.
FreakOut Indonesia is currently being run by a team of 10 people from its office in South Jakarta.
“We still want to educate the publishers and advertisers to start the revolution to invest in advertising in media, especially for mobile phone,” he ended.
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