In-game Advertising - Malaysia

Malaysia

Highlights

In Malaysia, revenue in the In-game Advertising market market is projected to reach US$53.97m in 2024.
The revenue in this market is expected to show an annual growth rate (CAGR 2024-2029) of 6.64%, resulting in a projected market volume of US$74.44m by 2029.
The average revenue per user (ARPU) in Malaysia is expected to amount to US$4.92.
In global comparison, most revenue will be generated China, where it is anticipated to reach US$46.61bn in 2024.
In Malaysia, the rising popularity of mobile gaming is driving brands to increasingly invest in innovative in-game advertising strategies to engage younger audiences.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The In-game Advertising market in Malaysia is witnessing significant growth due to various factors such as the increasing popularity of online gaming, the growing smartphone penetration, and the rising demand for immersive gaming experiences.

Customer preferences: Customers in Malaysia are increasingly turning to online gaming as a form of entertainment. The convenience and accessibility of mobile gaming have made it a popular choice among Malaysians, leading to a rise in the number of gamers in the country. As a result, advertisers are recognizing the potential of reaching a large and engaged audience through in-game advertising.

Trends in the market: One of the key trends in the In-game Advertising market in Malaysia is the integration of native advertising within games. Native advertising seamlessly blends into the gaming environment, making it less intrusive and more engaging for players. This form of advertising allows brands to create a more immersive and interactive experience, increasing the chances of capturing the attention of gamers. Additionally, the use of in-game rewards and incentives has become a popular strategy to encourage players to engage with advertisements, further driving the growth of in-game advertising in Malaysia.

Local special circumstances: The Malaysian gaming market is unique in its preference for mobile gaming. With the majority of the population owning smartphones, mobile gaming has become the dominant platform for gaming in the country. This presents a significant opportunity for in-game advertising as mobile games offer a highly targeted and personalized advertising experience. Furthermore, the Malaysian gaming market is known for its diverse player base, with gamers ranging from casual players to competitive eSports enthusiasts. This diversity allows advertisers to target a wide range of demographics and interests, making in-game advertising a versatile and effective marketing tool.

Underlying macroeconomic factors: The growth of the In-game Advertising market in Malaysia is also influenced by the country's strong economic growth and increasing disposable income. As the economy continues to expand, more Malaysians have the means to spend on leisure activities, including gaming. This has led to a higher demand for gaming content, creating a favorable environment for in-game advertising. Additionally, the growing middle class in Malaysia has resulted in a shift towards digital entertainment, further driving the popularity of online gaming and in-game advertising. In conclusion, the In-game Advertising market in Malaysia is experiencing significant growth due to the increasing popularity of online gaming, the rise of mobile gaming, and the country's strong economic growth. With customer preferences shifting towards immersive gaming experiences and the integration of native advertising, in-game advertising presents a lucrative opportunity for brands to reach a large and engaged audience in Malaysia.

Data coverage:

The data encompasses B2C revenues. Figures are based on in-app advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers ad spending on advertisements displayed within a mobile application.

Modeling approach / Market size:

The market size is determined through a combined top-down and bottom-up approach. We use market data from independent databases, the number of application downloads from data partners, survey results taken from our primary research (e.g., Consumer Insights), and third-party reports to analyze and estimate global in-app advertising spending. To analyze the markets, we start by researching digital advertising in mobile applications for each advertising format, incidents of in-app and mobile browser usage, as well as the time spent in mobile apps by categories. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as GDP, mobile users, and digital consumer spending. Lastly, we benchmark key countries and/or regions (e.g., global, the United States, China) with external sources.

Forecasts:

We apply a variety of forecasting techniques, depending on the behavior of the relevant market. For instance, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional Notes:

The market is updated twice per year in case market dynamics change. Consumer Insights data is unbiased for representativeness.