Marketing Guide

Malaysia advertising outlook 2013

 The Malaysia advertising industry is one of the most dynamic and active ones around the region. The Advertising Expenditure or ADEX in Malaysia has been one of the fastest growing and with the good performance registered for the first 9 months of 2012 despite the global economic slowdown, market analysts have been upbeat about 2013, hoping that the momentum will carry forward to next year.

However, the general sentiments among advertisers for 2013 might be that it could be a slower year as compared to 2012. This is mainly due to the fact that there were certain major global events in 2012 that caused the spike in ADEX not only in Malaysia but also around the world.

According to Nielsen Media, not including ADEX on the internet, July saw a growth of 6.3% year-on-year which was significantly lower than June where the growth was at 8.2%. This was mainly due to the UEFA Euro 2012 football tournament. For the first 6 months of 2012, ADEX increased by 2.6% as compared to the year before that totalled to some RM6.1 billion. The largest percentage came from newspapers that covered 40.4% while free-to-air television was at 27.3% which were both lower than 2011.
Meanwhile, all other media like Pay TV, Radio, outdoor and magazines advertising saw healthy growth rates. July this year too had a good run as it was when the London 2012 Olympics was held for a month. These figures were healthy and projected a positive outlook for advertisers and the agencies alike although regions like Europe and the United States were reportedly facing financial crises throughout.

It was reported that certain agencies have performed extremely well in the Malaysia with ADEX for the first 10 months of 2012 breaching the RM9billion mark. This was a good improvement for the same period last year when the ADEX was registered at RM8.67billion.

On this note, analysts are confident that this momentum will most likely continue to next year and it would be interesting and surely exciting in the first quarter with festivities like Christmas, New Year and Chinese New Year coming around.

The main hurdle that 2013 would bring about is that there will be no major events happening (unlike 2012 with Euro and the Olympics) which means that there might not be a boost come mid-year, which is usually the slower ADEX periods.

Hence, it is up to the local ministries and businesses to stimulate the market which will in turn affect ADEX. The outlook for 2013 will most likely be slower than 2012 with a more steady pace of ADEX throughout the year with minor spikes during the festive seasons. 2014 would surely be a better year with the World Cup 2014 in Brazil coming around.