Malaysia Online Advertising Market | Malaysia Online Advertising Industry: Ken Research

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What are the Major Challenges in the Malaysia Online Advertising Market?

The major challenge to this industry has been a shortage of skill, most of the c level positions in the industry are occupied by expats and even at the lower levels it is difficult to fill the positions on an urgent basis. The lack of training and education in this sector has Lack of the right in-house skill sets and expertise. Compared to the level of development of the country, Malaysia still lags behind in terms of digital infrastructure. Due to the availability of large number of advertising agencies in Malaysia, it is difficult for the agencies to retain their clients due to stiff competition. The agencies compete in terms of charges or rates, unique services such as brand reputation management, web design and app marketing and others. The agencies need to bring creative ideas and customized service in order to increase the client retention rate in the market.  High expectations of the advertising agencies in terms of ROI in short period of time creates another hindrance in Malaysia Online Advertising Market. Generally, advertising industry takes long to payback the investment or generates ROI. But it has been observed the advertising agencies in Malaysia are keen to generate ROI in short span due to the fact that their customers are heavily investing in digital marketing and want to see results. Limited talent and expertise of advertising agencies is a big challenge in the market. Malaysia advertising market is dominated by traditional mediums such as T.V., newspapers, radio and others and digital is

Competitive Landscape in Malaysia online advertising Market

The overall competition stage of the industry has been a ~ in terms of advertising spent and market share of major platforms with the presence of large number of small agencies and platforms in 2018. Few of the major advertising agencies include Omnicom, IPG Medibrands, Publicis, Dentsu, Group M and many others. The major parameters on the basis of which the advertising agencies in the market compete with each other are revenue generated, number of full time employees, and number of active clients, client retention rate and the major clients along with pricing. These have helped the major advertising agencies to assemble higher market share during the review period. The online advertising platforms are competing with each other on the parameters such as market share, users, time spent on platform, gender profile users, brands or clients, age group and others

What is the Future of Online Advertising Industry in Malaysia?

The Malaysia online advertising spent has been anticipated to grow registering a moderate growth during the period 2019 to 2023E with a CAGR of close to ~% in terms of advertising spend. This advertising spend will be supported by the increasing number of internet users which is expected to grow with a CAGR of close to ~% during 2018 to 2023E. Growth during this period is expected to be supported by the rising number of smart phone users, increasing usage of social media networks, well developed digital infrastructure, diversifying services portfolio and others. Increase in literacy rate would supplement growth in the market. Due to the expansion of the already existing advertising agencies and the establishment of many other agencies, the penetration percent of the online advertising will increase in future. Many new services and new technologies are expected to be launched in the forecast period having a positive impact on demand for online ads. The increasing number of international brands in Malaysia would have a combined effect and increase the number of online ads with during the forecast period. The future share of medium of online advertising such as desktop and mobile in the Malaysia online advertising market is expected to change in favor of mobile by 2023. The scenario is improving for mobile ads because of the increasing usage of smart phones and low cost incurred in mobile advertising.

With the increase in the time spent on internet, higher awareness among the people due to high literacy and increasing number of social media users, the penetration rate of the brands into online advertising market is expected to increase in the future. Due to this, there would be an increase in the conversion rate, which is anticipated to grow at a CAGR of ~% from 2018 to 2023. The penetration of the internet users is expected to rise by ~% in 2023. This rise in the internet users is due to establishment of robust digital infrastructure that enables for fast downloading and high speed broadband networking in Malaysia.

In addition, increase in the number of players in different sectors in Malaysia will encourage brands to go for digital advertising in order to cope with the competition.

For more information, refer to below link:

Malaysia Online Advertising Market

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Malaysia Online Advertising Market Research Report to 2023: Ken Research

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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:

Google

Facebook

Instagram

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:

Google

Facebook

Instagram

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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Oman Online Advertising Market Outlook to 2023 – By Medium (Desktop And Mobile), By Type (Search Advertising, Social Media Advertising, Banner Advertising, Video Advertising, Online Classifieds), By Sectors (Hospitality & Tourism, FMCG, BFSI, Telecommunications, Healthcare, Automotive, Retail And Others) And By Model (Cost Per Mile, Cost Per Click And Cost Per Action)

Singapore Online Advertising Market Outlook to 2023 – By Type (Search Ads, Social Media Ads, Video Ads, Banner Ads, Online Classifieds And Others), By Type Medium (Desktop, Mobile), By Sectors (FMCG, Entertainment & Media, BFSI, Automotive, Retail, Healthcare And Others) And By Models (Cost Per Click, Cost Per Mile And Cost Per Action)

Contact Us:

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Ankur Gupta, Head Marketing & Communications

Ankur@kenresearch.com

+91-9015378249

Malaysia Online Advertising Market Outlook to 2023: Ken Research

The report titled “Malaysia Online Advertising Market Outlook to 2023 - By Medium (Desktop, Mobile), By Type (Search Ads, Social Media Ads, Video Ads, Banner Ads, Online Classifieds and others), By Sectors (FMCG, Entertainment & Media, BFSI, Automotive, Retail, Healthcare and others) and By Models (Cost Per Click, Cost Per Mile and Cost Per Action)” covers online advertising spent, market segmentation by medium of advertising (desktop and mobile), by type of advertising (search advertising, social advertising, video advertising, banner advertising, online classifieds and others), by sectors (FMCG, Entertainment & Media, BFSI, automotive, E-commerce/Retail, Healthcare and others), by models (Cost per Mile, Cost per Click and Cost per Action). The report also covers emerging growth drivers and trends, issues and challenges; customer pain points and decision making parameters and competitive landscape of players in the market with special focus on Omnicom, IPG Medibrands, Publicis, Dentsu, Group M  and others. The report also explores the digital customer profile in Malaysia, future outlook & projections along with analyst recommendation & macroeconomic variables highlighting the major opportunities & cautions to the reader.

The key target audience of the report would be various advertising agencies, advertising platforms, investors and others. This report will particularly help the readers to identify the ongoing trends in the industry and anticipated growth in the future depending upon changing industry dynamics in upcoming years.

Malaysia Online Advertising Market Summary

Market Overview: Traditional medium for advertisement has had a majority share in Malaysia owing to its early evolution along with the ease & expertise gained by the workforce over time. These include ads run primarily through television, radio and print media (newspaper and magazines) and out of home advertising. The fast and rapidly evolving pace of Information Technology has enabled online advertisement to become one of the most popular channels of communication in the country. Malaysia has strong supportive internet infrastructure including fast internet’s speed, user-friendliness, low cost and convenience offered which has contributed to the further development of online marketing industry. Malaysia Online Advertising Market is at the growth stage witnessing an intense competition amongst advertising agencies. With onset of internet & social media popularity, companies realized tremendous online viewership hence, transited towards the online mode ever since 2000’s. With the advent of digitization, companies have now realized the benefits of advertising online especially on Smartphones. The total number of internet users has increased considerably during the review period. 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 market still lacks the right types of tools and performance metrics to measure the success of the campaign. Online advertising spent is expected to witness sound growth at a CAGR of around 29% during the revenue period 2013-2018.

Market Segmentation

By Medium (Desktop and Mobile)

Pictures and videos can make an online advertisements appear more eye-catching to the consumers. With the advent of video platforms like Netflix and Viu, there has been an increase in consumption of video content on Smartphones causing a shift of viewers from TV media. In the past, desktop dominated the market owing to better resolution of the advertisements and bigger screen. Additionally, with increased affordability, the ease of carrying and the internet accessibility of smart phones have caused a shift in the medium of operation of internet. Although the country still lags in the affordability of Internet plans, there is rapid increase in smart phone penetration in the country. Mobile advertising is now preferred by Advertisers and have led the market share in 2018.

By Sectors/Industries (FMCG, Healthcare, Entertainment & Media, Automotive, BFSI and Others)

Retail E-commerce is the top sector which spends ample budget on digital advertising owing to the need to target specific customers followed by the Travel which has a significant share in online advertisement spending in the country owing to increasing awareness by government to promote tourism in country. FMCG also saw an increase in advertising spend due to the increase in number of international brands in the market and their need to maintain a higher visibility. Healthcare sector is coming up with innovative medical services and need to raise awareness among consumers and is growing slow owing to the restrictions on advertising in the sector. Automotive and Banking services also accounted for a considerable market share in the digital advertising market spending in Malaysia.

By Pricing Models (Cost per Mile (CPM), Cost per Click (CPC) & Cost per Action (CPA)

The CPC model was being widely used by publishers in Malaysia. The CPA model is going to overtake the CPC model with the steady growth of social media ads & video ads as new players are entering the market preferring CPA. The model converts leads into sales and is highly result driven. On the other hand, CPM is considered to be a medium just to spread awareness and hence has a considerable share in 2018.

By Types of Advertising (Banner, Video, Search, Social Media and Online Classified & Others Advertising)

Among the five types of digital advertising, social media ads have gathered the maximum market share in 2018 due to the higher usage of social media for the various activities. In social media, Facebook accounts for the maximum user penetration followed by Instagram, YouTube, and Google. Search media advertising ranks second due to the increasing e commerce in the country where Malaysians prefer to search before they buy. Video advertising has gradually increased in the last five years whereas banner and online classified advertising have seen a slight decline in this period in terms of relative share.

Competitive Landscape: Companies in Malaysia have been introducing innovative methods of capturing their target audience while the old firms are expanding their foothold into this space with the help of the existing data they possess. Companies compete on the basis of promotion strategies, their networking, major clientele and the platforms used for digital advertising. Some of the major players operating within this segment include Omnicom, IPG Medibrands, Publicis, Dentsu, Group M and others. Major platforms with majority of the share in the market are Google and Facebook, followed by LinkedIn, Snapchat and other platforms. The market is fragmented for advertising agencies while it is highly concentrated for platforms on the basis of ad spent in 2018. Pricing, brand value as well as advertising strategies adopted by a particular company are considered as of high importance in order to reach a wider target audience in the country.

Malaysia Online Advertising Market Future Outlook

It has been analyzed that pictures & videos in the multimedia would continue to have strong influence to form favorable stance towards brand and purchase intention of customers in the next 5 years. This would make advertisers invest higher on online advertisements. Malaysia online advertising market is forecasted to witness a CAGR (2018-2023) of close to 20% due to the lack of expertise and skills among the agencies.

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:

Google

Facebook

Instagram

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:

Google

Facebook

Instagram

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

Related Reports

Oman Online Advertising Market Outlook to 2023 - By Medium (Desktop And Mobile), By Type (Search Advertising, Social Media Advertising, Banner Advertising, Video Advertising, Online Classifieds), By Sectors (Hospitality & Tourism, FMCG, BFSI, Telecommunications, Healthcare, Automotive, Retail And Others) And By Model (Cost Per Mile, Cost Per Click And Cost Per Action)

Singapore Online Advertising Market Outlook to 2023 - By Type (Search Ads, Social Media Ads, Video Ads, Banner Ads, Online Classifieds And Others), By Type Medium (Desktop, Mobile), By Sectors (FMCG, Entertainment & Media, BFSI, Automotive, Retail, Healthcare And Others) And By Models (Cost Per Click, Cost Per Mile And Cost Per Action)

Vietnam Online Advertising Market Outlook to 2023 - By Medium (Desktop And Mobile), By Type (Banner, Video, Search, Social Media And Online Classifieds & Others Digital Advertising), By Sectors/Industries (FMCG, Healthcare, Entertainment & Media, Retail & E-Commerce, Automotive, BFSI And Others)

Contact Us:

Ken Research

Ankur Gupta, Head Marketing & Communications

sales@kenresearch.com

+91-9015378249