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SMS Advertising - Malaysia

Malaysia

Ad spending in the SMS Advertising market in Malaysia is forecasted to reach US$1.28m in 2024.
The ad spending is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of 1.66%, leading to a projected market volume of US$1.39m by 2029.
When compared globally, the United States will contribute the most to ad spending, with US$310.40m in 2024.
The average ad spending per capita in the SMS Advertising market is projected to be US$0.04 in Malaysia in 2024.
In Malaysia, SMS Advertising is gaining traction due to its cost-effectiveness and high engagement rates in the competitive advertising market.

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

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Analyst Opinion

The SMS Advertising market in Malaysia is experiencing significant growth and development due to several factors.

Customer preferences: Customers in Malaysia are increasingly relying on their mobile devices for communication and information. With the growing popularity of smartphones, SMS advertising has become an effective and convenient way for businesses to reach their target audience. SMS messages are easy to read and can be accessed anytime, anywhere, making them an ideal medium for advertising campaigns. Additionally, customers in Malaysia are becoming more receptive to SMS advertising as they see it as a personalized and direct form of communication.

Trends in the market: One of the key trends in the SMS Advertising market in Malaysia is the rise of mobile commerce. With the increasing number of smartphone users, more and more people are using their mobile devices to make purchases and conduct financial transactions. This trend has created new opportunities for businesses to promote their products and services through SMS advertising. Companies are now leveraging SMS messages to send promotional offers, discounts, and updates on new products directly to customers' mobile phones, leading to increased sales and customer engagement. Another trend in the market is the integration of SMS advertising with other digital marketing channels. Businesses in Malaysia are recognizing the importance of a multi-channel approach to reach their target audience effectively. By combining SMS advertising with other channels such as email marketing and social media, companies can create a cohesive and integrated marketing campaign that maximizes reach and impact. This trend is driven by the need to engage customers across different touchpoints and provide a seamless and personalized experience.

Local special circumstances: One of the unique aspects of the SMS Advertising market in Malaysia is the diverse cultural and linguistic landscape. Malaysia is a multicultural country with a significant population of different ethnicities, each with their own language and cultural preferences. To effectively reach the target audience, businesses need to tailor their SMS advertising messages to cater to the specific cultural and linguistic preferences of different segments. This requires a deep understanding of the local market and the ability to create localized content that resonates with the target audience.

Underlying macroeconomic factors: The growth of the SMS Advertising market in Malaysia is also influenced by the country's strong economic performance and increasing disposable income. As the economy continues to grow, consumers have more purchasing power, leading to increased demand for products and services. Businesses are leveraging SMS advertising to tap into this growing consumer market and drive sales. Additionally, the government's initiatives to promote digitalization and e-commerce are also contributing to the growth of the SMS Advertising market in Malaysia. These initiatives include providing incentives and support for businesses to adopt digital marketing strategies, including SMS advertising.

Methodology

Data coverage:

The data encompasses B2B enterprises. Figures are based on SMS Advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers the advertising budget used for creating and sending SMS advertisements.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on specific predefined factors for each market. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and industry associations, third-party studies and reports, survey results from our primary research (e.g., the Statista Consumer Insights), as well as performance factors (e.g., user penetration, usage). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, number of internet users, and internet coverage. 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 relevant 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. The main drivers are GDP per capita, consumer spending per capita, and internet coverage.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a 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). Data from Consumer Insightsis reweighted for representativeness.