How Could Ramadan Be An Important Economic Season In Indonesia?

Ramadan is Indonesia’s largest festivity and thus it brings out more opportunities for brands and businesses to connect with the right audience. Due to rapid digital adoption and increased digitalization, new users are seen enjoying online shopping in Indonesia last year making the brand’s online-offline shopping experience smooth. The E-commerce transactions have grown to 2.1X for FMCG products mainly in non-metro areas during 2021.

People’s behavior during Ramadan 

Digital media have made people pursue their interests digitally. Shorter working hours enabled people to use online streaming apps and digital mediums during Ramadan has helped them to get entertainment and to shop in the comfort of their homes. There was two times increase in online donations as compared to the previous year because people tend to look for entertainment through streaming 

apps to pass the long hours of fasting.

With the reduced working hours, the changing pattern among programs category is seen because consumers use the digital medium to watch entertainment, religious and educational programs. 70% of Indonesians view more video content during Ramadan than non-festive times. The purchase intentions among users were also high during Ramadan as 79% of consumers like to shop online while staying at home.

User interests during Ramadan

82% of Indonesians shop online at least once a month making 2 out of 5 consumers to be neutral and indifferent to the brand they are currently using. Television viewership increased up to 4% in the past years with a 45% increase in viewership of kids and teens. 

OTT platforms have become a source of creating awareness among consumers about the brands during festivals like Ramadan for the year 2021 there was an almost 12% increase in people who like to spend their time on OTT. 52% of the consumers like to learn about the brand through online shopping festivals and 48% of them learn about deals and promotions through online streaming apps. 

Advertising spend during the past years

Advertising spend saw a positive trend during the past years. As a result of behavioral changes and consumer needs, some brands took the opportunity to advertise more during Ramadan. The active players of Tel-com and E-Commerce see an increasing demand for internet data and online shopping respectively. In terms of product categories, many top players increased their advertising budgets by more than 20% on various media platforms.

What do brands need to do during Ramadan?

In Indonesia, people start to search for products before Ramadan and continue even after Eid therefore, brands need to stay active and also create meaningful connections with impactful content before and after Ramadan by starting campaigns early as people are more eager to celebrate the festivities of Ramadan and Eid. With the evolution of shopping behavior and digital consumption, people will expect brands to meet their needs online and the timely availability of the brands online is a key for marketers to remain on the top of the mind. 

Ramadan is a time for Indonesian brands to be inventive in capturing the attention of at-home consumers and change their perceptions. Additionally, brands should make every moment and customer touchpoint count and by analyzing audience behavior and type of data consumption, brands can also be built personalized creatives regardless of it online or offline. Marketers need to understand the reality behind the insight-led strategy to attract mobile customers to drive effective engagement and sales.

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