advertising market in malaysia - Malaysian Communications And ...

advertisinG ma r k e t in ma l a y s i a
Malaysian Mobile Ads
According to Frost & Sullivan, mobile advertising revenues37 would represent 3.1% of estimated
total adex in Malaysia by the end of 2008. Total mobile advertising revenues in Malaysia are
forecasted to rise from RM10.4 million at the end of 2008 to RM175.5 million by 2012. Mobile
multimedia streaming services (audio and video) are anticipated to become one of the significant
channels in the delivery of mobile advertising by 2012.
Mobile Advertising Market: Revenue Forecast (2008-2012)
200
60 Messaging
180
WAP
160
50
Video
140
Performance
120
40
In-application
100
80
30
60
40
20
20
0
10
2008 2009
On-deck Mobile Ad Revenues
2010 2011 2012
Year
Off-deck Mobile Ad Revenues
0
2008 2009 2010
Year
2011 2012
Note: Off-deck is known as “Direct-to-Consumer” (D2C) services which are developed, offered and billed for without much involvement of
the mobile operator. On-deck refers to ad or content marketed and sold through the mobile operators’ content storefront (or decks)
Source: Adapted from “Moving Ads for Moving Business: Trends, Opportunities and Challenges in the Mobile Advertising Industry” by Frost
& Sullivan 2008
Revenue (RM Million)
Among the key factor mobile advertising has the potential to grow are the availability of increased
adoption of premium mobile content, more sophisticated handsets, flat rate pricing for mobile
broadband, development in mobile video and broadcast mobile TV services and increased 3G
network coverage.
There are several significant barriers that must be overcome before mobile advertising become
an important part of advertising campaign. One of the major challenges is consumer behaviour.
Consumers’ willingness to accept or reject in campaign depends heavily on how they perceived
the value of the ads and the amount of control consumers have on their involvement with the ads
and protection on personal information. Lack of transparency in data pricing causes consumer
hesitance. Ultimately, the ability to ensure a satisfactory end-use experience is the most important
success factor.
Digital Signage
In McDonald’s restaurant throughout China and the Philippines, the LCD TV sets installed feature
McDonald’s promotions and advertisements from other companies as the customers’ wait for their
orders. In Malaysia, similar digital signage systems are installed at local restaurants of the Kayu
Restaurant chain; Malaysia’s premier shopping destination – Suria KLCC; and Aquaria KLCC.
37 Advertising revenue is the amount of revenue earned by media platforms/ distributors; advertising spend is the amount of advertisement spent
by the advertisers/ marketers
Revenue (RM Million)
35