How are Ramadan campaigns doing in Indonesia this year?

With Eid-al-Fitr just around the corner, this year’s Ramadan campaigning in Indonesia is in full swing. According to industry players MARKETING-INTERACTIVE spoke to, Ramadan 2024 certainly feels more festive this year than in 2023. 

According to Vera Shiska, R3's country director in Indonesia, the upbeat market could be due various factors such as better socio-economic conditions leading to consumer confidence, easy access due to digitisation, and an increased support of local brands.

Don't miss: Ramadan ads in Malaysia muted due to geo-political tensions. How are ad agencies coping? 

“Marketers are aligning campaigns across channels to maximise value, and many are investing strongly in eCommerce, where we see a rise in promotional and live streaming campaigns on the platforms,” said Shiska. Platforms such as Shopee, Tokopedia and TikTok Shop have become a hot commodity being the prolific state in which it is used during the Ramadan season.

While Indonesia did see the impact of global geo-political instabilities, the intensity of these issues has gradually been lowering, explained Arindam Bhattacharyya, chief strategy Office, dentsu Indonesia.

Given consumers are increasingly becoming discerning, and view brands not just for their products but also affiliations, brands, agencies, and other industry stakeholders must pay close attention to tactics and reputation recovery efforts related to ongoing issues, explained Bhattacharyya.

He added that some multinational brands have initiated paid as well as organic campaigns to address the impact on ongoing geo-political issues, such as by advocating for close synergy with local communities with “Made in Indonesia” campaigns or by introducing labelled products that are more relevant and appeal more to local consumers.

Anne Ridwan, chief operating officer of Future Creative Network, added that there is a clear increase in the number of commercials aired on both TV and online platforms and in-store activities. Some brands have already commenced their Eid-specific campaigns as a continuation of their Ramadan efforts, showcasing heightened enthusiasm for this festive season.

She added that this could be due to the recovery of the economy from the impacts of COVID-19 and the market itself becoming more competitive with both local and global players.

“I think many brands took the learnings from last year where there were more muted activities both online, offline and on-ground,” she said.

“Last year really proved that Ramadan provides a short window for certain categories to enjoy a significant spike in their sales, therefore investment during this period is critical to achieve the target - and they don’t want to miss it anymore, since the remaining year could not promise similar uptakes,” she added.

In fact, three in five consumers in Indonesia plan to spend RP3 million on Ramadan shopping this year. Out of 500 consumers surveyed, 60% revealed that they plan to increase their online shopping budgets, while 41% intend to increase their offline shopping expenditures, according to 'InMobi and Glance's 'The marketers guide to Ramadan report'. 

In addition, 73% of shoppers will make purchases on mobile. Their top reasons for shopping on mobile are easy-payments (51%), app-only discounts and offers (49%) and free shipping (49%). 

Indonesian Ramadan shoppers also start their research and shopping as early as a month before Ramadan. Therefore, the month leading up to the festivities is a crucial time for brands to make a lasting impact. 

Local trends and local brands leading the way

While not as prevalent as in Malaysia, Ridwan shared that the conflicts around Israel and Gaza have impacted some global brands in terms of negative brand reputation. With a large population of Indonesians being religious, and many Millennials embracing religion, purchase is also aligning to brands that resonate with their beliefs.

Beyond the geo-political tensions, what is making local brands stand out a lot more, said Ridwan, is their nimble and agile nature.

“I do think international brands struggle to make meaningful, relevant engagements with their audience as compared to brands (mainly local) that are more flexible in guidelines to doing so,” said Ridwan. This means that many international brands are no longer dominating the space and airtime in traditional media, nor in digital ecosystem.

Shiska added that the phenomenon of “Takjil War”, a term coined by the Indonesian TikTok community, where non-Muslim communities participate in the Ramadan festivities, also went viral on social media among people in Indonesia. It also accelerated consumer spend in the food service category.

“This is a friendly snack war between Muslims who are fasting and non-Muslim communities in buying seasonal takjil (snacks eaten when breaking fast) that are hardly found outside the Ramadan fasting month. Many brands have capitalised on this trend on social media platforms and creating content around it in hopes of gaining more sales.

In fact, throughout last Ramadan, TikTok sellers managed to record an increase in transaction value of up to 92% as compared to the period before Ramadan. To further capitalise on the Ramadan shopping buzz, marketers can leverage interactive formats such as live shopping and gamified experiences to engage audiences. These were the results of creative agency Moonfolks’ Ramadan Whitepaper Series titled ‘Faith vs. Consumerism'. 

As the rise of social media introduces a new layer of complexity that blurs the lines between genuine gift-giving and the pursuit of online validation, brands must optimise their content to capture audiences and drive commerce. Through social media, brands can also build trust and authenticity to establish a genuine connection with audiences as they will be more receptive to messages that echo the spirit of community, reflection, and charity.

Furthermore, content must go beyond a superficial entertainment value to stand out from other brands as consumers look for content that informs and empowers. To do so, brands should offer practical tips such as recipes for Iftar and Suhoor meals while also leveraging user-generated content through recipe challenges to encourage customer participation. 

This greatly differs from sentiments in Malaysia where the war in Gaza and the weakening of the ringgit has had a noticeable impact on Malaysian consumers. In Malaysia, the call for boycotts remains strong with brands such as McDonald's and Starbucks being caught in the eye of the storm. All of these incidents are causing many international brands in Malaysia to be cautious of being added to the list of brands being boycotted due to associations with Israel. Unlike previous years, this has led to a rather muted Ramadan period when it comes to advertising spend, said industry professionals MARKETING-INTERACTIVE spoke to.

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