Top 5 Strategies for Boosting Telecom Margins in Indonesia

Top 5 Strategies for Boosting Telecom Margins in Indonesia

Indonesia's digital video advertising market is poised for significant growth, with ad spending projected to reach USD 810.61 million in 2025 and an annual growth rate (CAGR 2025-2030) of 5.38%, pushing the market volume to USD 1.05 billion by 2030 (Source: Statista). This rapid expansion is fueled by increasing mobile penetration, shifting consumer behavior, and the rise of video-centric content consumption.

One of the biggest drivers of digital advertising growth in Indonesia is the dominance of video advertising. The country is emerging as one of the fastest-growing markets for video ad formats, with programmatic video ads playing a crucial role in shaping the digital advertising landscape. According to the MMA Indonesia Mobile Ecosystem Report, Indonesian telecom operators, particularly Telkomsel, are experiencing a surge in video consumption, with video data usage expected to contribute 33% of Telkomsel’s total data consumption.

The shift toward mobile-first, in-app video advertising is transforming how brands engage with consumers. Platforms like YouTube, TikTok, and OTT services (such as Disney+ Hotstar, Vidio, and Viu) are dominating Indonesia’s online video space, providing advertisers with lucrative opportunities to reach their target audience. In particular, social video, user-generated content, and premium video-on-demand (VOD) are accelerating the transition to digital-first marketing strategies.

As the Indonesian telecom industry grapples with declining ARPU, rising operational costs, and changing consumer expectations, operators must embrace strategic innovations to safeguard margins and unlock new revenue streams. By leveraging emerging advertising technologies, hyper-personalized video ads, and mobile-first marketing solutions, telecom operators can navigate these challenges and drive profitability in 2025 and beyond.

Among the most disruptive innovations in mobile adtech, GSM-based moLotus mobile video advertising and interaction platform stands out as a game-changer for Indonesian telcos. The platform, developed by Novosol, enables telecom operators to monetize their subscriber base and enhance customer engagement through highly personalized, interactive, and scalable mobile video campaigns. Unlike traditional ad formats, moLotus does not require app downloads or data plans, ensuring seamless message delivery directly to mobile inboxes without spam. By integrating moLotus into their marketing mix, Indonesian telecom operators can unlock new high-margin revenue streams, drive ARPU growth, and boost customer lifetime value, positioning themselves at the forefront of digital transformation.

This article provides actionable strategies and platform-specific insights for Indonesian telecom operators seeking to thrive in Indonesia’s dynamic digital ad market, outlining how they can maximize revenue growth and improve profitability.

1. Monetizing Subscriber Data for Competitive Advantage

Telecom operators in Indonesia have a goldmine of first-party subscriber data at their disposal. With millions of mobile users generating vast amounts of behavioral, demographic, and transactional data daily, telecom companies can transform this data into a high-margin revenue stream. By effectively monetizing subscriber data, telcos can unlock new revenue sources, improve customer engagement, and gain a competitive edge in an increasingly saturated market.

Unlike third-party data, first-party subscriber data collected by telcos is highly accurate, privacy-compliant, and exclusive, making it an invaluable asset for advertising, customer engagement, and business intelligence. By leveraging subscriber profiles, usage patterns, and location data, telcos can offer highly targeted advertising solutions to brands and businesses looking to reach Indonesian consumers effectively.

For example, moLotus enables telecom operators to monetize their subscriber data by delivering personalized, interactive mobile ad campaigns. Unlike conventional digital ad platforms, moLotus uses telco mobile infrastructure to deliver messages directly to customers' mobile inboxes without requiring apps or internet connectivity. This spam-free, permission-based approach ensures high customer response and engagement rates while allowing telcos to create high-margin revenue streams from advertisers and enterprises.

Apart from moLotus, telcos in Indonesia are also exploring DMPs (Data Management Platforms) and CDPs (Customer Data Platforms) to organize and segment subscriber data effectively. For instance, Google’s Customer Match allows advertisers to use telco subscriber lists to tailor ads on platforms like Google Search, YouTube, and Gmail. Similarly, Facebook’s Custom Audiences assist brands in retargeting mobile users with targeting based on their telco data.

Raw subscriber data alone does not generate revenue; telecom companies must implement advanced analytics and AI-driven solutions to derive actionable insights. With the integration of big data analytics, AI, and machine learning, telcos can predict customer behavior, segment audiences more effectively, and optimize ad delivery for better targeting and higher conversions.

For instance, Indonesian telecom giants like Telkomsel and Indosat Ooredoo Hutchison have invested in big data solutions to analyze customer spending habits, app usage trends, and location-based behaviors. These insights help them create highly targeted mobile advertising campaigns in partnership with global brands.

moLotus further enhances subscriber data monetization by offering deep customer intelligence and analytics. The platform allows telcos to personalize mobile ads by embedding subscriber details such as name, preferences, location, and purchase history into the campaign. This level of personalization not only increases ad relevance and engagement but also ensures higher returns for both telcos and advertisers.

2. Driving Operational Efficiency Through Digital Transformation

Automation, digitization, and transformation are the top priorities for Indonesia's telecom industry as operators strive to remain competitive in an increasingly digital-first market. With rising operational costs, shifting consumer expectations, and growing competition from OTT players, telcos must rethink traditional business models and embrace end-to-end digital transformation. Leading Indonesian telecom brands such as Telkomsel, Indosat Ooredoo Hutchison, and XL Axiata are actively investing in AI, automation, cloud computing, and mobile-first engagement technologies to streamline operations, reduce inefficiencies, and enhance customer experience. However, despite these advancements, many telcos still struggle with legacy systems, high-cost structures, and fragmented customer engagement strategies, creating an urgent need for scalable, cost-efficient transformation models.

moLotus is emerging as a key enabler for telcos in this digital transformation, providing cost-effective mobile automation solutions that reduce dependency on physical documentation, call centers, and manual processes. The platform automates customer interactions, enabling telcos to deliver personalized offers, service reminders, and loyalty programs at scale—without requiring an app or mobile data. Unlike conventional digital engagement methods, moLotus’ unique capability of reaching all mobile users directly via telco networks ensures higher response rates and lower operational costs, driving sustainable margin growth.

Beyond moLotus, cloud-based solutions and AI-driven automation tools are reshaping telecom operations in Indonesia. Google Cloud and AWS Telco Solutions allow telecom operators to migrate core systems to the cloud, improving network performance and reducing infrastructure costs. Meanwhile, Robotic Process Automation (RPA) is being widely adopted to automate backend operations such as billing, fraud detection, and network optimization, allowing telcos to enhance productivity while cutting operational expenses.

By leveraging these digital transformation tools, Indonesian telcos are significantly lowering costs, enhancing agility, and improving service delivery. The shift towards automation and AI-driven efficiencies is no longer optional—it is an essential strategy for boosting telecom margins and ensuring long-term profitability in Indonesia's rapidly evolving telecom landscape.

3. Embracing Mobile Advertising as a High-Margin Revenue Stream

With over 80% of Indonesia’s internet users accessing content via mobile, telecom operators have a significant opportunity to monetize their subscriber base through mobile advertising. As traditional revenue streams decline, mobile advertising is proving to be a high-margin, scalable revenue source that requires minimal infrastructure investment. By leveraging direct-to-mobile ad solutions, telcos can unlock new ad revenues while enhancing customer engagement.

A key disruptor in this space is moLotus GSM-based platform, which enables telcos to deliver interactive, 40 sec. mobile video ads directly to subscribers without requiring an app or internet connection. Indonesian telecom giants like Telkomsel and Indosat Ooredoo Hutchison are utilizing moLotus to help brands run automated mobile ad campaigns across industries such as banking, e-commerce, and FMCG. This platform offers high engagement, zero spam, and low cost per interaction, making it a valuable tool for telcos to maximize mobile advertising revenues.

Beyond moLotus, global ad platforms like Meta Ads and Google Ads are also shaping Indonesia’s mobile advertising landscape. Telcos are integrating with these platforms to offer targeted social media and in-app advertising solutions. Meta’s ecosystem—spanning Facebook, Instagram, and WhatsApp Business Ads—enables telcos to deliver highly personalized, data-driven ad experiences. Meanwhile, Google Ads, particularly YouTube video advertising, is playing a key role in Indonesia’s growing in-app and short-form video ad market.

Additionally, next-gen mobile engagement tools like AI-driven chatbots, RCS messaging, and interactive SMS are further enhancing telco-driven advertising strategies. For instance, Indosat Ooredoo Hutchison has explored AI-powered mobile ad solutions that enable real-time customer interactions, personalized recommendations, and automated ad targeting—significantly boosting ad revenues and subscriber engagement.

As mobile advertising continues to expand, telcos in Indonesia must capitalize on high-margin mobile engagement platforms to unlock new revenue streams. By embracing moLotus, Meta Ads, Google Ads, and AI-powered ad technologies, telecom operators can monetize their subscriber base effectively while ensuring sustained profitability in a mobile-first digital economy.

4. Gaining A Competitive Edge with AI-based Innovation

Artificial intelligence is reshaping Indonesia’s telecom advertising landscape, providing automation, hyper-personalization, and predictive analytics that enable telcos to drive new revenue streams. As digital transformation accelerates, Indonesian telcos must harness AI-powered advertising to maximize profits, enhance customer engagement, and optimize marketing efficiency. However, many operators face challenges in choosing the right AI-driven tools, integrating them into existing ecosystems, and adapting to evolving trends in AI marketing.

Platforms like Google Ads and Meta Ads leverage AI for audience segmentation, automated bidding, and real-time ad optimization. While these tools are widely used, their reliance on third-party data and rising privacy restrictions are making it increasingly difficult for telcos to extract maximum value. Additionally, running AI-driven campaigns on these platforms demands higher budgets and specialized expertise, limiting accessibility for some telecom advertisers.

A more tailored, telco-friendly AI solution is moLotus, designed to help Indonesian telcos via AI agents which act as virtual spokespeople, engaging subscribers with intelligent, personalized interactions—from product recommendations and reminders to customer support—boosting customer retention and ad revenues. For Indonesian telcos, the adoption of AI-powered advertising platforms like moLotus ensures higher campaign ROI. AI enhances real-time personalization, dynamic content delivery, and cost-efficient ad execution, enabling telcos to reach the right audiences at the right time with highly relevant messaging.

By embracing AI-driven advertising, Indonesian telecom operators can unlock new monetization opportunities, improve ad performance, and strengthen their position in an evolving digital ecosystem. AI is no longer just an advantage—it is a necessity for telcos aiming to stay ahead in Indonesia’s competitive telecom advertising market.

5. Strengthening Customer Retention and Loyalty Programs

Customer retention is becoming a top priority for Indonesian telecom operators as rising competition and market saturation make it harder to acquire new subscribers. High churn rates impact revenue and increase operational costs associated with acquiring and onboarding new customers. Studies show that retaining an existing customer is significantly cheaper than acquiring a new one, making loyalty-driven strategies essential for boosting telecom margins.

A well-designed loyalty program can create strong brand affinity and reduce churn. However, traditional, one-size-fits-all loyalty initiatives often fail to deliver results. Instead, telcos need data-driven, personalized engagement strategies that resonate with individual subscriber preferences. Advanced mobile engagement platforms like moLotus enable telcos to craft hyper-personalized loyalty campaigns using mobile videos, tailored offers, and interactive content. For example, moLotus allows telcos to send exclusive upgrade offers, extra data packages, or VIP service perks directly to high-value customers.

Beyond offering rewards, improving the overall customer experience is key to retention. AI-driven automation and predictive analytics help telcos anticipate customer needs and proactively address pain points before they lead to churn. Platforms like Google Ads and Meta Ads enable telcos to retarget disengaged subscribers with personalized content, while AI-powered chatbots streamline customer support, ensuring quick issue resolution.

Loyalty must go beyond discounts and rewards—it should focus on continuous engagement and superior service delivery. Indonesian telcos that integrate AI, automation, and personalized mobile campaigns into their retention strategies can significantly enhance customer lifetime value, reduce churn, and strengthen profitability in an increasingly competitive market.

Conclusion

To thrive in Indonesia’s competitive telecom landscape, operators must adopt high-margin, tech-driven strategies to boost ad revenue. This includes monetizing subscriber data, leveraging AI-powered advertising, driving digital transformation, embracing mobile advertising, and enhancing customer retention.

Platforms like moLotus are reimagining telco marketing by enabling automated and personalized mobile ad campaigns, maximizing ROI. By integrating innovative, mobile-first solutions, telcos can optimize operations, increase profitability, and secure long-term growth in 2025 and beyond. Now is the time to embrace transformation and lead the future of telecom advertising.