Marketing Analytics Startup AppsFlyer to Expand Business in Indonesia

BY :SARAH YUNIARNI

MARCH 23, 2017

[Updated at 17:30 p.m. on Wednesday, March 23, 2017 to correct misspellings]

Jakarta. AppsFlyer, a global marketing analytics startup, may open an office in Indonesia as the company seeks to take advantage of the country's growing mobile marketplace.

Based in Herzliya, Israel, AppsFlyer's business model measures and monitors user interaction with advertisements embedded in smartphone applications and traffic generated from social media posts, user invites and quick response (QR) codes.

"Indonesia represents one of our most important markets. We're committed to the market and have several job openings as our local presence grows, hiring more team members in Indonesia while exploring several additional opportunities that benefit the market," AppsFlyer's client manager Paul McCarthy told the Jakarta Globe on Wednesday (23/03).

"Our focus today is still to serve our current and future clients in Southeast Asia, including Indonesia and once we have solidified our expansion plans this year, we will likely look toward opening an Indonesia office," McCarthy added.

AppsFlyer raised $56 million in January from investments by four global venture capital firms, increasing the company's total funding to $84 million. The company plans to allocate the recent investments to exploring merger options and strengthening partnerships with similar businesses in Asia.

"We are committed to the region and a number of options are on the table. I can't comment on any current merger or acquisition plans," McCarthy said.

AppsFlyer claims that its yearly revenue has grown by 500 percent over the past two years, owing some of that business to the emerging markets in Asia and Indonesia, specifically. Since its inception in 2011, the company has acquired 12,000 customers.

"For marketing trends and investments, we're likely to see continued growth of digital ad spending in Indonesia driven by the e-commerce, financial tech, gaming and FMCG sectors," McCarthy said.

Mobile First

According to AppsFlyer, Indonesia is a unique country because the majority of the population uses mobile devices, as opposed to desktop computers, to connect to the Internet.

"As Indonesia is culturally and historically a collectivist society, it is one underlying reason there is such heavy social media usage. And as smartphones have proliferated, mobile devices are now the go-to source for social media engagement, content consumption and business transaction," McCarthy said.

According to data published in June last year by Swedish telecommunications giant Ericsson, there are a total of 330 million active SIM cards in Indonesia with 100 million individual smartphones in use. At least 67 percent of Indonesian smartphone owners use their devices to shop, McCarthy said, citing data released in 2015 by Google.

AppsFlyer already has some big-name Indonesian clients, including Mataharimall.com, Gojek and Tokopedia. Most businesses spend a large chunk of their advertising budgets on mobile platforms, McCarthy said.

"We use AppsFlyer as a tool to filter the so-called 'invalid install' from mostly our mobile users. For example, now we know in detail about the extend of our ad reach, including the clickers age and demography, so when a user interacts with an ad from foreign countries, such as from Ukraine, that is an indication of ad fraud," Tokopedia co-founder Leontinus Alpha Edison said.

Leo said that more Tokopedia customers access the company's digital platforms via mobile devices as opposed to desktop browsers.

"Mobile users are dominating our online purchases," Leo said.

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