What current economic conditions, consumer confidence and advertising investment trends suggest about the marketing landscape ahead.

What can we see from here?

There is no shortage of predictions about 2027. But instead of trying to predict the future, perhaps it is more useful to look at the signals already visible today. Indonesia’s economy is still growing. Consumers remain optimistic. Advertising spending is expected to increase.

At the same time, confidence has softened, global uncertainty remains, and media investment is moving at very different speeds. So, what does all of this tell us?

Perhaps 2027 will be less about spending more and more about spending smarter.

The Economy Is Still Moving Forward

Indonesia’s economy grew 5.29% year-on-year in Q2 2026. Growth was slightly slower than the previous quarter, but still above the 5% level that Indonesia has broadly maintained.

Household consumption also remained positive, growing 5.06%.

So this is not a story about an economy going backwards. It is a story about a market entering 2027 with continued growth, but a little more caution.

The signal: The market is still growing. But the environment is becoming more demanding.

Consumers Are Still Optimistic

There is another interesting signal. Bank Indonesia’s Consumer Confidence Index reached 116.8 in July 2026. Anything above 100 indicates an optimistic consumer outlook.

So Indonesian consumers are still feeling positive. But confidence has softened slightly.

The index was 117.8 in June, while the Current Economic Condition Index and Consumer Expectation Index also declined from the previous month, although both remained in optimistic territory.

116.8 — Consumer Confidence Index, July 2026. Still optimistic. But a little more careful.

For marketers, this matters. Consumers may still spend—but they may think a little harder about what is worth spending on. And when consumers become more selective, brands need their media investment to work harder too.

Advertising Is Still Growing

The good news for marketers is that advertising is expected to continue growing. Dentsu’s Indonesia outlook forecasts advertising spending to grow by around 5.4% in 2027.

Our Indonesia market reference from Statista Market Insights points in a similar direction, forecasting total advertising spending of around US$7.75 billion in 2027, or 5.6% growth.

Two sources. Similar direction. So there is no sign that advertising is simply going to stop growing.

The more interesting question is: Where will that growth go? Because not every medium is growing at the same speed.

The Media Mix Is Moving

The Indonesia data in our Statista reference makes the difference quite clear.

The numbers tell a simple story: The advertising market is growing. But some parts of the market are moving much faster than others. That means the question for marketers is becoming less about whether to invest in media—and more about where the next investment makes the most sense.

More Choices. More Decisions.

The same pattern can be seen globally. Dentsu expects global advertising spending to grow 5.5% in 2027. Digital already represents around 69% of global advertising spending, while Retail Media, CTV and video, Social and Digital OOH remain among the fastest-growing areas.

WARC is even more optimistic, forecasting global advertising spending to reach around US$1.40 trillion in 2027, representing 7.9% growth.

Different forecasts give us different numbers. But they point in the same direction:

Advertising is still growing. At the same time, more of that growth is being captured by large digital platforms and digitally enabled media.

So marketers are facing an interesting situation:

More money.

More media choices.

More competition for attention.

And that makes allocation increasingly important.

Physical Media Is Evolving Too

The growth of digital does not mean physical media is disappearing. OOH remains part of the growth story. Dentsu expects Indonesia’s OOH market, including DOOH, to continue growing in 2027.

Our Statista reference also forecasts:

OOH: +6.1%

Digital OOH: +9.5%

That difference is worth watching. Because it suggests that the future of OOH may not simply be more outdoor advertising. It may be more connected, dynamic and digitally enabled OOH.

The Bigger Picture

Longer-term forecasts also remain positive for Indonesia.

PwC’s latest Global Entertainment & Media Outlook 2026–2030 projects Indonesia’s advertising market to grow from US$12.8 billion in 2025 to US$18.9 billion in 2030, equivalent to an 8.2% CAGR under PwC’s broader advertising-market definition. It also forecasts Indonesia’s internet advertising revenue to grow from US$10.7 billion to US$16.8 billion over the same period.

These numbers should not be directly compared with the Statista dataset because the two sources use different market definitions. But the broader signal is consistent:

Indonesia’s advertising market has room to keep growing. The question is how that growth will be distributed.

So, What Could 2027 Mean for Marketers?

Put all the signals together:

The economy is growing.

Consumers remain optimistic.

Advertising spending continues to rise.

But confidence is a little softer.

Media choices are multiplying.

Technology is changing how advertising is bought.

And investment is moving at different speeds across media.

This creates a different challenge from simply asking:

“How much should we spend?”

The more useful question may be:

“Where should the next advertising rupiah work hardest?”

It’s Not About Choosing One Medium

There probably won’t be one winner in 2027.

A brand may need video to tell its story.

Search to capture active demand.

Social to create participation.

Retail media to get closer to purchase.

OOH to build visibility in the physical world.

DOOH to add flexibility and relevance.

Each can play a different role.

The opportunity is not necessarily to choose one over another. It is to understand what each environment can do best.

Reading the Signal

So, what are the signals telling us? Not that marketers should spend less. Not that digital will replace everything else. And not that we can predict exactly what 2027 will look like.

The signal is simpler. Marketing is becoming more diverse, more measurable and more demanding.

The advertising pie is still growing. But the next challenge is deciding where to put the next slice.

For marketers, that could mean looking beyond reach alone and considering the combination of attention, relevance, context, measurability and action that each environment can deliver.

The Signal in One View

Indonesia Economy +5.29% Q2 2026 GDP growth Source: BPS	Consumer Confidence 116.8 July 2026 Source: Bank Indonesia	Indonesia Advertising +5.4–5.6% Expected 2027 growth Source: Dentsu + Statista
Fastest-growing areas Digital Video +16.1% Influencer +12.6% Digital OOH +9.5% Source: Statista Market Insights	Global Advertising +5.5% Dentsu 2027 forecast Source: Dentsu	Algorithm-driven advertising 75% Expected share by 2028 Source: Dentsu