How online advertising Market Is Positioned in Malaysia?
The Online Advertising Market in Malaysia is currently at its growth stage. The penetration of Smartphone in Malaysia has increased in recent years due to the entry of mid range Smartphones manufactured by Chinese makers. The increasing computing power of smart phones and access to new applications and features has led to decline of use of internet especially social media via desktops and laptops. Moreover unlike the traditional broadcasting mediums such as Radio and T.V which are active only at prime time or during morning commute hours, digital media is available and with the user throughout the day so there is no specific time constraint for advertisers to post their Ads. According to our research the market has grown significantly during the period 2013 to 2018. The penetration rate has been evaluated to be ~% in 2018. The social advertising has the biggest share followed by video advertising and search advertising, while online classifieds and others was least popular in 2018. Major reasons for the increase in advertising spent have been the increasing size of E commerce, travel and FMCG industry. The growth of these industries will directly impact the Advertising Industry. The digital advertising landscape is developing at an astonishing pace as media proliferation and technology are together yielding newer ways of connecting with consumers.
The increasing market size of industries especially FMCG & Ecommerce/Retail have helped the revenue to grow at a CAGR of ~% during the review period. This clearly spells prospects for every marketer in terms of reaching the target audience. Some of the major advertising firms operating in the market are Omnicom, IPG Medibrands, Publicis, Dentsu, Group M and many others. The services provided are Search Engine optimization, web design, content marketing, brand reputation management and many others. To achieve this and personalize the consumer approach, businesses are adopting programmatic buying to incorporate predictive analytics. This would help firms better understand the preferences of consumers and their habits. Due to the above mentioned factors, the online advertising industry has witnessed a growth at the rate of approximately ~% in terms of advertising spend during the review period of 2013 to 2018. Which type of advertising has been more successful in 2018?
The market is dominated by the Social media advertising based on advertising spend in 2018. Social media posts drive the targeted audience due to the widespread usage of social media platforms in each industry, segment. Social media provides an opportunity to find the advertised web content and visit the website. As the social media platforms offer targeted ads that can be customized and personalized. Customers can be targeted by age, location, industry and others. Hence, increasing the number of social media users in Malaysia will thrive the industries such as entertainment towards social media ads. Google is the most preferred platforms by Malaysians as search engines.In Malaysia Smartphone Usage is more as compared to laptops, moreover a majority of population have an account on Facebook. It has been analyzed that during the review period, 2013-2018, the online advertising mediums social media advertisement and search advertising are in the growth stage registering a CAGR of ~% and ~% owing to dominance of search engines and social media advertising while Video Advertisement is also in growing phase registering a CAGR of ~%. Social media advertising is followed by Video advertising.
What has been the share of different sectors on the basis of Ad Spent in 2018?
The Retail/Ecommerce sector in Malaysia is dominating the market in terms of online advertising spend. This is due to the fact that the e commerce website needs to look into the customer behavior and target specific customer. The industry would continue to spend a lot on advertising in the coming years as the young millennials are more inclined towards online shopping owing to the fact that since the economy is recovering the inflation is bound to be low in coming years and also the consumer spending has increased due to the rise in disposable income, especially for middle class This accounts for ~% share of the total online advertising spent in Malaysia .The second high spending sector in terms of online advertising is Travel. This is due to the fact that the government initiatives to promote tourism in the country have led to a boom in the industry. The advertising spend made by Travel was USD ~ Million in 2018. This accounts for ~% share of the total online advertising spent in Malaysia the FMCG sector is making third highest expenditure on online advertising this is due to the presence of international brands with large number of buyers and sellers with having low product differentiation. Thus, in order to survive in the market it becomes important for FMCG brands to create awareness and stay at the top of the mind of their customers. The advertising spend made by FMCG sector was USD ~ Million in 2018.
Key Segments Covered in Malaysia Online Advertising Market
By Online Advertising Medium (On the basis of Online Advertisement Spending)
Desktop
Mobile
By Types of Online Advertising (On the basis of Online Advertisement Spending)
Search Advertising
Social Media Advertising
Banner Advertising
Video Advertising
Online Classified & Others
By Different Sector/Industries (On the basis of Online Advertisement Spending)
Retail/E-Commerce
Travel
FMCG
Healthcare (Includes Pharmaceuticals)
Media and Entertainment
Automotive
BFSI
Others
By Pricing Models (On the basis of Online Advertisement Spending)
Cost per Click (CPC)
Cost per Mile (CPM)
Cost per Action (CPA)
Time Period Captured in the Report:
Historical Period: 2013-2018
Forecast Period: 2019-2023
Key Target Audience
Advertising Agencies
Social Networking Platforms
End User Industries Investing in Online Advertising
Investors
Advertising Agencies Covered:
Group M
Publicis Groupe
IPG media brands
Dentsu Aegis
Omnicom
Advertising Platforms Covered:
YouTube
Key Target Audience
Advertising Agencies
Social Networking Platforms
End User Industries Investing in Online Advertising
Investors
Companies Covered:
Dentsu
Omnicom
IPG Mediabrands
Publicis
Group M
Platforms Covered:
YouTube
Key Topics Covered in the Report
Malaysia Online Advertising Market
Malaysia Online Advertising Market Segmentation
SWOT Analysis of Malaysia Online Advertising Market
Trends and Development in Malaysia Online Advertising Market
Issues and Challenges in Malaysia Online Advertising
Regulatory Scenario of Malaysia Online Advertising Market
Competitive Scenario in Malaysia Online Advertising Market
Company Profiles of Malaysia Online Advertising Market
Malaysia Online Advertising Market Future Outlook and Projections, 2018-2023E
Analyst Recommendation in Malaysia Online Advertising Market
For more information, refer to below link:
Malaysia Online Advertising Market
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Contact Us:
Ken Research
Ankur Gupta, Head Marketing & Communications
+91-9015378249
