Market Insights Advertising & Media Advertising Out-of-Home Advertising

Digital Out-of-Home Advertising - Malaysia

Malaysia

Ad spending in the Digital Out-of-Home Advertising market in Malaysia is forecasted to reach US$88.77m in 2024.
The expected annual growth rate (CAGR 2024-2029) for ad spending is 7.69%, leading to a projected market volume of US$128.60m by 2029.
Malaysia is expected to contribute significantly to the market, with an estimated market volume of US$5,277.00m in 2024.
The average ad spending per capita in the Digital Out-of-Home Advertising market is projected to be US$2.56 in 2024.
The rise of digital billboards in Malaysia is reshaping the Out-of-Home Advertising landscape with targeted, dynamic content delivery to captivate audiences effectively.

Key regions: Europe, United States, United Kingdom, Germany, India

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Analyst Opinion

The Digital Out-of-Home Advertising market in Malaysia is experiencing significant growth due to changing customer preferences, emerging trends, and local special circumstances. Customer preferences in Malaysia are shifting towards interactive and engaging advertisements. Consumers are becoming more tech-savvy and are looking for unique experiences when it comes to advertising. This has led to an increased demand for digital out-of-home advertising, which offers dynamic and interactive content that captures the attention of consumers. Additionally, with the rise of social media and online platforms, customers are seeking advertisements that can be easily shared and engaged with on these platforms. Digital out-of-home advertising provides the opportunity for brands to create shareable content that can be easily distributed across various online channels. Trends in the market show that digital out-of-home advertising is becoming more targeted and personalized. With advancements in technology, advertisers are able to gather data on consumer behavior and preferences, allowing them to deliver more relevant and personalized advertisements. This trend is particularly relevant in Malaysia, where the population is diverse and has varying preferences. By tailoring advertisements to specific demographics and locations, advertisers can maximize the impact of their campaigns and reach their target audience more effectively. Local special circumstances in Malaysia also contribute to the growth of the digital out-of-home advertising market. Malaysia has a high smartphone penetration rate, with a large portion of the population relying on their mobile devices for information and entertainment. This presents an opportunity for advertisers to leverage mobile integration in their digital out-of-home campaigns, allowing consumers to interact with advertisements using their smartphones. Additionally, Malaysia has a strong tourism industry, attracting both domestic and international visitors. Digital out-of-home advertising provides a platform for advertisers to reach these tourists and promote their products or services. Underlying macroeconomic factors further support the growth of the digital out-of-home advertising market in Malaysia. The country's economy has been steadily growing, leading to increased consumer spending and investment in advertising. Additionally, Malaysia has a well-developed infrastructure, with a network of highways, public transportation systems, and shopping malls. This infrastructure provides ample opportunities for the placement of digital out-of-home advertisements, ensuring high visibility and reach. In conclusion, the Digital Out-of-Home Advertising market in Malaysia is growing due to changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. Advertisers are adapting to the preferences of consumers by offering interactive and engaging content, while also leveraging technology to deliver targeted and personalized advertisements. The local special circumstances in Malaysia, such as high smartphone penetration and a thriving tourism industry, further contribute to the growth of the market. With a strong economy and well-developed infrastructure, Malaysia provides a conducive environment for the expansion of the digital out-of-home advertising market.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on digital out-of-home advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers internet-connected out-of-home advertisements such as digital billboards, digital street furniture, digital transit and transportation, and digital place-based media.

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use annual financial reports of the market-leading companies and industry associations, third-party reports, and survey results from our primary research (e.g., Consumer Insights) to analyze the markets. 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, population, urban population, and internet infrastructure.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market. For instance, 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.

Additional notes:

Data is modeled using current exchange rates. The impacts of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice per year in case market dynamics change.