Japan-Based FreakOut Arrives in Indonesia

As per last August 2015, Japan-based digital marketing platform FreakOut officially entered Indonesia by the name of PT FreakOut dewina Indonesia. The platform brings along its mobile ad network-based in-feed native advertising platform called ‘Hike’ within its expansion in Indonesia, which has enjoyed a remarkable fame in Thailand and Istanbul.

This Tokyo-based enterprise, which was founded back in 2011, went IPO in 2014 at more than USD 400 million of valuation. After five years of operation, FreakOut has established itself branch offices in Osaka, Singapore, Bangkok, Istanbul, and Jakarta, with more than 130 employees so far.

Hike platform and in-feed native advertising in Indonesia

In Indonesia, FreakOut would be one of mobile ad network-based pioneers in in-feed native advertising. However, it’s not te first time for the company to get in touch with Indonesian market, as it partnered with IdBlogNetwork to bring the Demand Side Platform (DSP) to the local market a couple of times ago.

Hike is basically an Ad Network which is focused at smartphone, by upholding the in-feed native ads model. In-feed is the revolution of digital advertorial which emphasizes on content. In simple terms, it is created to offer a native ad-like ability that enables the ads to appear as if they’re the content itself. In Indonesia, KapanLagi Network has set its eyes and future plans on this advertising model.

By applying the model, FreakOut claims that Hike is able to be part of the content by adjusting itself to the frame, look, feel, and layout of each mobile site. Moreover, FreakOut claims that Hike’s ads format can be easily applied by every web or app developer.

FreakOut Indonesia’s CEO Tomohiro Yasukura stated:

“We want to offer our latest mobile solution which is profitable for publishers, and a new alternative for banners to advertisers, as well as a less intrusive ads format to users. We want to contribute to the growth of mobile market in Indonesia.”

Behind FreakOut’s expansion to Indonesia and the potential of mobile advertising in Indonesia

FreakOut’s decision to expand its operations to Indonesia isn’t without reason. According to Yasukura, there are at least three main reasons that base the team’s decision to enter Indonesia.

First, is that the high penetration of smartphone Indonesia possesses, which makes the country to be the one with biggest smartphone users in the world. Second, is the high growth of digital ads spending in Indonesia, which is predicted to be even five times bigger than the total volume in Asia Pacific by 2018. Last, is the potential of e-commerce market which is predicted to be worth USD 25 billion in the future.

Yasukura also revealed that while FreakOut starts its operations in Indonesia, it will mainly target e-commerce players. He hopes that every publisher who has a digital media in Indonesia can learn about Hike, sooner or later.

As the new kid in the block, FreakOut arms itself with complete ammo, given the fact that it’s actually a proven player in the scale of Asia. However, the market of Indonesia is unique, as stated by Adskom's Italo Gani. This surely would be one of toughest FreakOut’s homework.

Translated by Rifki Aria Nugraha