advertising market in malaysia - Malaysian Communications And ...

advertisinG ma r k e t in ma l a y s i a
Malaysia Adex Trends
The Malaysian advertising landscape is gradually shifting its traditional media forms to the emergent
new media advertising but still at a nascent stage. The latter shows much room for growth, as the
industry fuels to content digitisation on web applications. This has shown when RM14.9 million
worth of advertisements was spent on the Internet medium in the first half of 200834 . Propelling
further to this, the TV medium is creating new media technologies to include ads on applications of
mobile video streaming and broadcast mobile TV services. However, this might dampen if Malaysia’s
broadband penetration and Information and Communication Technologies (ICT) literacy does not
improve. With Government’s various initiatives to push the take-up of broadband, perhaps the
advertising market could initiate more eyeballs.
In the first half of 2008, Malaysia’s total advertising spend rose 22% from the first half of 2007,
amounting to RM2.9 billion. According to Nielsen Media Research Service, this is due to on-flow
from last year of new product and service launch campaigns, as well as local market events like
the general election, Beijing Olympics and Euro 2008.
RM (billion)
6
5
4
3
2
1
0
28.1
0.5
24.8 25.4
0.6
0.8
34.9
1.1
12.1
1.2
15.2
1.4
16.6
1.7
20.9
2.0
Note: Includes ASTRO net adex since 2003
Source: Nielsen Media Research Service; Media Specialists Association; “Newspaper and TV Ads Drive Strong Adex Growth” by The Star,
16 August 2008
Traditional medium still drives the bulk of adex in Malaysia. Newspapers represent 54% of the
total adex market share in Malaysia, taking the largest portion with total amount of advertising
spend reaching RM1.6 billion, a growth of 16% from the first half of 2007. The highest growth for
the first half of 2008 was the TV media (+37%), representing 33% of the adex market share and
generating ads worth RM947.5 million. The top three brands are from the telecommunications
sector, remaining as the top consistent spenders in advertising, hence also leading in product
categorisation at RM177.3 million.
34 “Newspaper and TV Ads Drive Strong Adex Growth” by The Star 16 August 2008; Media Specialists Association
2.4
Malaysian Adex
1988 - June 2008
19.8
2.6
8.8
2.1
-17.8
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 1H
2008
16.6
2.5
24.4
3.1
3.2
3.2
3.4
6.2
3.7
Adex RM (billion) Adex Growth (%)
8.8
4.4
18.9
4.6
4.5
4.7
2.2
5.5
17.0
2.9
40
30
20
10
0
-10
-20
-30
Growth (%)
29