Indonesia's Affiliate Market is About to Get a Big Push from IdBlogNetwork
I remember that during our Jakarta Meetup last month, Veritrans’ Ryu Kawano and Ideosource’s Andi Boediman said how they believe Indonesia’s media and advertising markets are huge. There’s a lot of money being spent on online advertising, but there aren’t enough media or alternatives to Google Adsense to cover them all yet. This is where Indonesian blog advertising service IdBlogNetwork ( 1 ) comes in.
IdBlogNetwork announced last week that it has started a cooperation with The Affiliate Gateway (TAG) Asia since to bring more affiliate marketing alternatives for Indonesian bloggers. IdBlogNetwork co-founder Kukuh also explained to us that they’re going to launch a social media advertising platform called IdBuzzNetwork in early April, hopefully during our Startup Asia Singapore event, he said.
With the TAG Asia partnership, now bloggers within IdBlogNetwork can put affiliate companies’ scripts in the form of links or image banners onto their blogs and get commission from every purchase going through their sites. There are ten affiliate companies for bloggers to choose from, which includes Rocket Internet’s online fashion shop Zalora Indonesia, Air Asia, online florist Forever Florist Indonesia, and food delivery service Food Panda.
Besides those ten companies, IdBlogNetwork bloggers can also advertise ticket booking service Tiket’s products. While the upcoming IdBuzzNetwork will allow netizens to help brands promote their products through popular social media sites like Facebook, Twitter, and Instagram.
Social buzz
Kukuh shared that in the first week of the company’s cooperation with TAG Asia, there have been over 65,000 ad impressions across the ten affiliate companies so far with a very low click-through rate. That doesn’t look too good for the bloggers, especially when the transactions resulted from those click-throughs are even smaller. Kukuh said that unfortunately they only offer the aforementioned pay-per-transaction model.
That is not entirely a bad thing though. The reason for the very low click-through rate and transactions is because these affiliate marketing programs are still very much new in Indonesia. Bloggers aren’t used to selling things online, and people aren’t used to buying things online just yet. Indonesia’s internet penetration and online shopping habits are still under development too. But there’s a future in affiliate marketing like this, as it prompts bloggers to encourage their family and friends to start buying things online, and the word-of-mouth spread will help spur the country’s online shopping growth even further. This is also true for Kukuh’s aforementioned other project, the IdBuzzNetwork.
Of course this is also good for companies which are looking to spend their money on digital advertisements as there are more avenues in Indonesia for them to do so besides Google Adsense. Tiket, travel website Wego, and the aforementioned ten affiliate companies are taking part in this new project, and there will surely be more companies following this avenue too.
Note that Amazon is also using the pay-per-transaction affiliate marketing method, and there have been a lot of success stories from it. This may just be the start of Indonesia’s attraction to Amazon-like affiliate programs and culture in the future.
East Ventures invests in both IdBlogNetwork and TechinAsia. IdBlogNetwork is also one of our Startup Asia’s sponsors. See our ethics page for more information.
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