From Passive Consumption to Active Participation: How Gen Z and the New Funnel Are Reshaping Brand Activation in Indonesia

Discover how experiential marketing, driven by Gen Z’s demand for real experiences and nonlinear journeys, is redefining brand activation in Indonesia — turning audiences into active participants and co-creators of brand stories.

The Shift Is Here: From Viewers to Participants

Not long ago, brand activations in Indonesia followed a predictable formula: brands spoke, audiences listened, and — sometimes — purchased. The consumer’s role was passive. Today, that era has definitively ended.

The landscape has changed dramatically. Today’s Gen Z consumers don’t want to merely see a brand; they want to feel, shape, and share it. Nearly half of Gen Z customers abandoned brands they found “boring” in 2024, while 87% say they prioritize experiences over products[3]. This isn’t a passing trend—it reflects a fundamental shift in how younger consumers define value and engagement.

For brands and agencies like Reflex, which specializes in deep-rooted activations across secondary and tertiary Indonesian cities, this means reimagining everything. We’re not just staging displays anymore; we’re creating co-creative environments where the audience becomes part of the narrative. The stakes are high because in this new landscape, passive participation is failure. Engagement must be earned through authenticity and active involvement.

Why Experience Speaks Louder Than Exposure

Across cities like Bandung and Yogyakarta, Reflex has witnessed firsthand that participatory campaigns outperform traditional promotional setups by a significant margin. One focus group participant captured the psychological truth perfectly:

“We remember how a brand made us feel, not what it said.”

When consumers taste, design, explore, or co-create, emotional connection deepens — and that bond often outlasts any banner ad or 5-second video pre-roll. This is backed by hard data: 91% of consumers have a more positive perception of a brand after participating in activation experiences, and 85% are more likely to make a purchase following participation.

It’s not just Gen Z either. Reflex’s post-event research shows that millennials and Gen X consumers in Indonesia — particularly in lifestyle and automotive sectors — also respond powerfully to personalized, story-driven activations that engage the senses and emotions. However, Gen Z’s intensity around this preference is distinctive. In a 2024 study, 28% of Gen Z actively seek out brands that deliver “memorable experiences,” compared to just 17% of other demographics.

This generational preference isn’t random. Gen Z grew up in an attention economy where they learned to distinguish between authentic engagement and marketing noise. They demand experiences that feel genuine, offer utility or entertainment, and provide opportunities for self-expression.

Gen Z, Funnel 2.0, and the Rise of Co-Creation

The traditional marketing funnel — Awareness → Interest → Desire → Action — no longer applies like it used to, the stages are there but everyone can enter on any stages. Research from Spearhead Agency confirms that Gen Z’s path to purchase is nonlinear and multidimensional, with discovery, investigation, and sharing happening simultaneously across multiple platforms. This isn’t just a behavioral quirk; it’s a fundamental rewiring of how younger consumers evaluate and adopt brands.

In practice, this means Gen Z discovers products organically through social feeds, validates them through peer reviews and creator recommendations in real-time, and acts on purchases within moments of inspiration. The traditional stages collapse into what researchers call a “loop” rather than a funnel—discovery feeds into validation, which triggers purchase, which generates sharing that fuels discovery for others.

For modern brands, this means moving beyond conversion funnels and building ecosystems of interconnected experiences. These span social commerce, livestreaming, AR/VR pop-ups, in-person activations, and user-generated content — all integrated and reinforcing one another.

The Evidence Is Clear: Experiential Marketing Works

Global insights powerfully reinforce this transformation:

• 91% of consumers believe attending a brand activation increases positive perception

• 85% of consumers are more likely to make a purchase after participating in an experiential marketing event

• 87% of consumers believe experiential marketing has greater impact on their emotions than traditional advertising

• Over 82% of consumers have a more positive perception of brands that prioritize experiential marketing

• 40% of customers agree that experiential marketing increases brand loyalty

Additionally, Gen Z specifically shows strong interest in technology-enhanced experiences: 81% of Gen Z and millennials expect augmented reality to play a pivotal role in their in-store shopping experiences, and 93% of Gen Z are interested in using AR for shopping purposes.

In Indonesia, where digital-native demographics are reshaping the consumer market and secondary cities like Bandung, Yogyakarta, and Surabaya are becoming new cultural and commercial hubs, this approach isn’t just innovative — it’s essential. With 70% of Indonesia’s population living outside tier-one cities and increasingly connected to digital platforms, experiential activations provide brands with the ability to create meaningful, localized connections at scale.

Three Layers of New ROI: Return on Involvement

Traditional ROI metrics—cost per acquisition, conversion rates—tell only part of the story. At Reflex, we define success through what we call the Three Layers of ROI — Return on Involvement:

Emotional ROI: Did the experience evoke a meaningful feeling or memory? Did participants leave the activation with positive associations they’ll carry forward?

Behavioral ROI: Did it inspire an action — a trial, share, purchase, or recommendation? Were participants compelled to take the next step in their brand journey?

Social ROI: Did it ignite conversation and user-generated content? Research shows that

nearly 98% of attendees at experiential events create digital or social content, effectively becoming micro-influencers for your brand.

When all three align, a campaign doesn’t just perform — it transforms. It turns marketing from a transaction into a shared cultural moment. Brands that track these three dimensions simultaneously gain deeper insight into what truly drives customer lifetime value and advocacy.

Why Experiential Marketing Is the Future of Brand Activation in Indonesia

Indonesia’s marketplace is youthful, value-driven, and digitally connected — yet deeply rooted in community and authenticity. Static advertising alone no longer captivates these audiences. This paradox is actually an opportunity.

Experiential marketing bridges that gap. It allows brands to listen, adapt, and co-create with their audience — not just speak to them. It honors the local cultures and communities that define secondary and tertiary cities while leveraging the digital connectivity that connects Indonesians across regions.

Across Bandung, Jogja, Surabaya, and beyond, Reflex continues to see one undeniable truth:

When people participate, they remember. When they remember, they act. When they act, they advocate.

The Competitive Advantage of Acting Now

Brands that prioritize experiential activation today are establishing themselves as category leaders. Consider the data: 56% of brands have increased event and experiential marketing budgets year-on-year, and 82% of retail companies have increased their experiential marketing budgets over the past three years, with 32% reporting significant growth. The market has spoken—experiential is no longer optional.

For decision-makers in Indonesia, the window to establish meaningful experiences in secondary markets is open now. First movers in cities like Bandung, Yogyakarta, and Surabaya will capture the growing middle class before competitors realize the opportunity.

Let’s Redefine Brand Activation Together

At Reflex, we don’t just stage events — we craft immersive experiences that make people feel seen, valued, and connected. We understand the unique dynamics of Indonesian markets, from the cultural richness of Yogyakarta to the entrepreneurial energy of Bandung. We know how to build activations that resonate locally while amplifying globally through social platforms.

If you’re a brand manager seeking deeper engagement, an event strategist craving innovation, a procurement manager evaluating activation partners, or a decision-maker looking for measurable ROI, it’s time to reimagine what activation can do for your brand.

Your audience is ready. They’re waiting for brands that see them as participants, not consumers. The question is: are you ready to meet them there?

👉 Book a Discovery Call today to see how Reflex can help you transform your next brand activation into an unforgettable experience that drives real business results.