advertising market in malaysia - Malaysian Communications And ...

ex e C u t i v e su m m a r y
The advertising industry today is showing a change in the traditional media to include the digital
media in order to reach audience more effectively. The interactive media of Internet, mobile and
gaming as well as increased use and availability of improved handsets, less expensive laptops,
faster broadband, and extensive Wireless Fidelity (Wi-Fi) connections, provide support for
expectations of further growth in global digital advertising. This type of advertising share of the
total advertising spend is expected to rise from 6% in 2005 to 15% in 2009.
Although the global economy is facing increased economic pressures, analysts forecast that global
advertising spend is to grow 6.7% in 2008 from 5.3% in 2007. The Asia Pacific region is expected
to post advertising spend growth of almost 10%. Meanwhile, the first quarter of 2008 showed
global advertising spend grew over 4% with main contributors coming from the television medium
– representing 60% of the global advertising market share.
The changing advertising-agency relationship sees the advertising process today evolving from
existing models of planning and negotiating purchase of media space to meeting the clients’ or
advertisers’ communication needs. This is by providing clients with insights on brand, consumer
media and integrated solutions and strategies to engage consumers. Advertising agencies are
required to explore and deepen creative content to be in sync with consumers’ targeted lifestyle
and communicating these across multiple platforms and formats. A study indicated that the
advertising value chain is expected to enter a new phase that will benefit consumers, advertisers
and interactive players. Digital advertising allows changes in the relationship between advertisers
and customer from traditional one-way broadcast to interactive media formats. Consequently,
share of advertising spend is expected to see traditional media slowly lose out in many ways
from audience reach to revenue opportunities as advertisers shift advertising spend to interactive
marketing opportunities online and across platforms offering mobility. A study by Taylor Nelson
Sofres (TNS) points out the different Asian markets and different digital channels have markedly
different levels of credibility towards digital channels. Malaysia marked higher level of trust in
digital advertisement, compared to Singapore and Hong Kong.
The new media environment is able to offer sophisticated measurement and consumer-targeting
capabilities to reach the exact consumer segments desired. Examples from the US market for
advertisements in the new media, indicate the potential for online TV with TV content watched
daily switching to time-shifted, on-demand, on the Web or on a mobile device. This could reap
enhanced returns for advertisers. eMarketer estimates that by the end of 2009, more than twothirds
of the US population or 200 million people go online, directly opening avenues for marketers.
Online advertising in formats such as search advertising, display advertising, video advertising,
classified advertising, e-mail marketing, affiliate marketing, mobile Internet advertising and
advertising on social networks is expected to be a key factor driving online advertising. Online
media advertisements are also expected in gain traction in the automotive industry, campaigns
such as for US elections, video game, sport sites and news online.
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