Market Insights Advertising & Media Advertising TV & Video Advertising

Digital Video Advertising - Malaysia

Malaysia

Ad spending in the Digital Video Advertising market in Malaysia is forecasted to reach US$192.70m in 2024.
The ad spending is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of 4.36%, leading to a projected market volume of US$238.50m by 2029.
With a projected market volume of US$84,610.00m in 2024, the majority of revenue will be generated in Malaysia.
In the Digital Video Advertising market in Malaysia, 59.96% of total ad spending will be generated through mobile in 2029.
The average ad spending per internet user in the Digital Video Advertising market in Malaysia is projected to amount to US$5.67 in 2024.
Connected TV ad spending in the Digital Video Advertising market in Malaysia is estimated to reach US$25.70m in 2024.
Connected TV is expected to exhibit an annual growth rate (CAGR 2024-2029) of 4.40%, resulting in a projected market volume of US$31.87m by 2029.
The Ad spending on short-form videos in the Digital Video Advertising market in Malaysia is projected to reach US$82.96m in 2024.
The Ad spending on short-form videos is expected to show an annual growth rate (CAGR 2024-2029) of 9.43%, resulting in a projected market volume of US$130.20m by 2029.
Malaysia's Digital Video Advertising market is rapidly expanding, driven by increased internet penetration and a growing demand for online video content consumption.

Key regions: United Kingdom, Australia, Japan, Germany, India

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Analyst Opinion

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

Customer preferences: Customers in Malaysia are increasingly turning to digital video advertising as a preferred medium for consuming content. This is driven by the convenience and accessibility of digital platforms, as well as the rise of mobile devices. With the increasing popularity of smartphones and tablets, consumers are spending more time watching videos online, creating a demand for digital video advertising.

Trends in the market: One major trend in the Malaysian digital video advertising market is the shift towards programmatic advertising. Programmatic advertising allows advertisers to automate the buying and selling of ad inventory, making it more efficient and cost-effective. This trend is driven by the growing availability of data and advanced targeting capabilities, which enable advertisers to reach their target audience more effectively. Another trend in the market is the rise of native advertising. Native ads are designed to blend in with the content of the platform on which they appear, providing a more seamless and non-disruptive experience for users. This type of advertising is gaining popularity in Malaysia as it allows brands to engage with consumers in a more organic and authentic way.

Local special circumstances: One of the unique characteristics of the Malaysian digital video advertising market is the diversity of its population. Malaysia is a multicultural country with a mix of ethnicities and languages. This diversity presents both opportunities and challenges for advertisers. On one hand, it allows for targeted advertising campaigns that can resonate with specific segments of the population. On the other hand, it requires advertisers to be sensitive to cultural nuances and language preferences in order to effectively reach their target audience.

Underlying macroeconomic factors: The growth of the digital video advertising market in Malaysia is supported by favorable macroeconomic factors. Malaysia has a strong and growing economy, with a rising middle class and increasing disposable income. This provides a larger consumer base for advertisers to target. Additionally, the government has been actively promoting the development of the digital economy, which includes the advertising industry. This support from the government has created a conducive environment for the growth of the digital video advertising market in Malaysia. In conclusion, the Digital Video Advertising market in Malaysia is experiencing growth and development due to customer preferences for digital content consumption, trends towards programmatic and native advertising, local special circumstances such as cultural diversity, and underlying macroeconomic factors such as a strong economy and government support.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on digital video advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers video ad formats (web-based, app-based, social media, and connected devices).

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use market data from industry reports and survey results from our primary research (e.g., Consumer Insights) to analyze the markets. Then we benchmark key countries or regions (United States, China, Europe, Asia, and Africa) results with country-specific advertising organizations or associations. 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, internet users, and digital consumer spending.

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.