Advertising - Malaysia

Malaysia

Ad spending in the Advertising market in Malaysia is forecasted to reach US$1,831.00m in 2024.
The largest market is TV & Video Advertising with a market volume of US$407.80m in 2024.
When compared globally, the United States will generate the highest ad spending (US$425.90bn in 2024).
Within the Advertising market, 71% of total ad spending is expected to come from digital advertising in 2029.
The average ad spending per capita in the Social Media Advertising market is projected to be US$11.88 in 2024.
In the Advertising market, Advertising market of the 72% revenue will be generated through programmatic advertising in 2029.
Malaysia's advertising market is increasingly prioritizing digital platforms over traditional media channels to reach tech-savvy consumers effectively.

Key regions: United States, China, Europe, Asia, Japan

Market

Region

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Currency

Analyst Opinion

The Advertising market in Malaysia has been experiencing significant growth in recent years.

Customer preferences: One of the main customer preferences in the advertising market in Malaysia is the shift towards digital advertising. With the increasing popularity of smartphones and internet access, consumers are spending more time online, making digital platforms an attractive advertising medium. Additionally, customers in Malaysia are becoming more discerning and selective in their choices, leading to a demand for personalized and targeted advertising campaigns.

Trends in the market: One of the key trends in the advertising market in Malaysia is the rise of influencer marketing. Influencers, particularly those on social media platforms such as Instagram and YouTube, have gained a large following and are seen as trusted sources of information and recommendations. As a result, brands are increasingly collaborating with influencers to promote their products and services, leveraging their influence and reach to connect with their target audience. Another trend in the market is the growing importance of data-driven advertising. With the availability of data analytics tools and platforms, advertisers are able to gather insights about their target audience, their preferences, and their online behavior. This allows them to create more targeted and effective advertising campaigns, leading to higher conversion rates and return on investment.

Local special circumstances: One of the unique aspects of the advertising market in Malaysia is the diversity of its population. Malaysia is a multicultural country with a mix of ethnicities, languages, and religions. This diversity presents both opportunities and challenges for advertisers. On one hand, it allows for targeted advertising campaigns that cater to specific ethnic or cultural groups. On the other hand, it requires advertisers to be sensitive and inclusive in their messaging to avoid alienating any particular group.

Underlying macroeconomic factors: The growth of the advertising market in Malaysia can be attributed to several underlying macroeconomic factors. Firstly, Malaysia has experienced strong economic growth in recent years, which has led to an increase in consumer spending power. This has created a larger market for advertisers to target and has fueled the demand for advertising services. Secondly, Malaysia has a young and tech-savvy population, which is driving the adoption of digital advertising. The country has a high internet penetration rate and a large number of smartphone users, making it an attractive market for digital advertisers. Lastly, the government of Malaysia has been actively promoting the development of the digital economy, including the advertising industry. This has led to the creation of favorable policies and incentives for advertisers, encouraging investment and innovation in the sector. In conclusion, the advertising market in Malaysia is experiencing significant growth, driven by customer preferences for digital advertising, trends such as influencer marketing and data-driven advertising, local special circumstances such as cultural diversity, and underlying macroeconomic factors such as strong economic growth and government support for the digital economy.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers advertising by businesses for traditional and digital advertisements.

Modeling approach:

Market sizes are determined by a combined top-down and bottom-up approach, based on a specific rationale for each market market. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and industry associations, third-party reports, and survey results from our primary research (e.g., Consumer Insights Global Survey). Next, we use relevant key market indicators and data from country-specific associations, such as GDP, internet users, consumer spending, and digital consumer spending. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, 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 some cases, the data is updated on an ad-hoc basis (e.g., when new relevant data has been released or significant changes within the market have an impact on the projected development).