Y&R Indonesia named LG Mobile's creative agency

Y&R Indonesia will be responsible for the brand’s advertising for 2013 and a TV campaign for the launch of LG Mobile’s new LG L series phone is currently in preparation, according to the agency.

The new phone comes in three models, targeting the middle-class segment, young people and ‘first jobbers’.

John Domas, Y&R Group Indonesia CEO, said the new campaign is set against a backdrop with a market full of opportunities and challenges with increased competition.

“Analysts see Indonesia’s digital potential as among the highest in the world, which makes it a market rich in opportunity,” Domas told Campaign Asia-Pacific. “But it also makes it highly competitive as many tech companies set their sights on tapping into that huge potential.”

He said although Blackberry has traditionally dominated the market, primarily driven by low-cost BBM services, there is increasing demand for new smartphones and other mobile devices, as competition amongst key telecoms is bringing data plan costs down, with the likes of WhatsApp gaining traction.

A VML Qais report, released in June 2012 and entitled ‘Indonesia’s Digital and Social Landscape’, shows some 55 million of its 230 million populations are Internet users, growing at over 20 per cent year-on-year, while there are 210 million mobile subscribers.

“It might seem like the market is already saturated,” Domas said. “But it would be naïve to underestimate the competitive nature of the product sector, as competition between the telecoms, the messenger providers and the platforms, is actually creating opportunities.”

Jakarta is the world’s most active Twitter city, while Indonesia is Twitter’s fifth largest and Facebook’s fourth biggest market in the world. According to Deloitte Access Economics, the internet accounts for 1.6 per cent of Indonesia’s gross domestic product (GDP). It is forecast to grow at three times the rate of the overall economy, and to account for 2.5 per cent of GDP by 2016.