Market Insights Advertising & Media Advertising

Influencer Advertising - Malaysia

Malaysia

The Ad spending in the Influencer Advertising market in Malaysia is forecasted to reach US$67.89m in 2024.
The market is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 10.29%, leading to a projected market volume of US$110.80m by 2029.
The average ad spending per internet user in the Influencer Advertising market is projected to be US$2.00 in 2024.
When compared globally, China is anticipated to generate the highest ad spending (US$19,160.00m in 2024).
In Malaysia, Influencer Advertising is experiencing a surge in demand as brands tap into the country's diverse social media landscape for targeted marketing strategies.

Key regions: Australia, Germany, France, Europe, United States

Market

Region

Region comparison

Currency

Analyst Opinion

Influencer advertising has become an increasingly popular marketing strategy in Malaysia, with businesses leveraging the power of social media influencers to promote their products and services.

Customer preferences: Customers in Malaysia are increasingly turning to social media platforms for product recommendations and reviews. They trust the opinions and recommendations of influencers, who are seen as relatable and trustworthy figures. Influencers are able to connect with their followers on a personal level, creating a sense of authenticity and credibility. As a result, customers are more likely to trust and purchase products that are endorsed by influencers.

Trends in the market: One of the key trends in the influencer advertising market in Malaysia is the rise of micro-influencers. These are influencers with a smaller following, typically between 1,000 to 100,000 followers. While they may have a smaller reach compared to macro-influencers, micro-influencers have a more engaged and targeted audience. Businesses are recognizing the value of working with micro-influencers who have a niche following, as they are able to generate higher levels of engagement and conversions. Another trend in the market is the increasing use of video content. Video platforms such as YouTube and TikTok have gained significant popularity in Malaysia, and influencers are leveraging these platforms to create engaging and entertaining content. Video content allows influencers to showcase products in a more dynamic and interactive way, capturing the attention of their followers and driving higher levels of engagement.

Local special circumstances: Malaysia has a diverse population with multiple ethnicities and languages. This presents a unique challenge for businesses looking to engage with influencers, as they need to ensure that their message resonates with the target audience. Local businesses are increasingly collaborating with influencers who have a strong understanding of the local culture and language, as they are able to create content that is culturally relevant and relatable.

Underlying macroeconomic factors: The rapid growth of e-commerce in Malaysia has contributed to the development of the influencer advertising market. With more people shopping online, businesses are looking for innovative ways to reach their target audience and stand out from the competition. Influencer advertising provides a cost-effective and targeted marketing solution, allowing businesses to reach their desired customer base and drive sales. In conclusion, the influencer advertising market in Malaysia is thriving due to customer preferences for social media recommendations, the rise of micro-influencers, the increasing use of video content, the need for culturally relevant messaging, and the growth of e-commerce. Businesses in Malaysia are recognizing the value of influencer advertising in reaching and engaging with their target audience, and this trend is expected to continue in the coming years.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on influencer advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers advertising fees paid directly to influencers to post sponsored content.

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use market data from independent databases, influencer marketing platforms, and third-party reports to analyze and estimate global influencer advertising spending. We start by researching on the average cost per content post on each social media platform, the number of influencers available on advertising platforms (breakdown by tier: nano, micro, macro, and mega), and the average number of posts per year. Then we estimate the market size for each country individually. We use relevant key market indicators and data from country-specific industry associations, such as GDP, social media users, and digital consumer spending. Lastly, we benchmark key countries or regions (global, United States, China, etc.) with external sources.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market. For instance, the S-curve function is well suited to forecast digital products due to the non-linear growth of technology adoption, whereas exponential trend smoothing (ETS) is more suited for projecting steady growth in traditional advertising markets.

Additional notes:

Data is modeled using current exchange rates. The impacts of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice per year in case market dynamics change.