Market Insights Advertising & Media Advertising

TV & Video Advertising - Malaysia

Malaysia

Ad spending in the TV & Video Advertising market in Malaysia is forecasted to reach US$406.10m in 2024.
The largest market is Traditional TV Advertising with a market volume of US$213.40m in 2024.
When compared globally, the United States is expected to lead in ad spending with US$143.80bn in 2024.
The average ad spending per user in the Traditional TV Advertising market is projected to be US$8.25 in 2024.
By 2029, the number of TV Viewers in Malaysia is anticipated to be 26.92m users.
Malaysia's TV & Video Advertising market is witnessing a surge in programmatic ad buying, enhancing targeted advertising effectiveness and efficiency.

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

Definition:
TV & Video Advertising includes advertising in the form of moving visual images instead of traditional broadcast television and all ad formats within digital video channels. Traditional TV Advertising includes non-digital formats and excludes all forms of digital TV advertising. Traditional TV Advertising also covers all ad spending on pay-TV operators and networks, free-to-air networks, and free-to-air spin-off digital channels from terrestrial network operators. In comparison, Digital Video Advertising includes all ad formats within webpage-based videos, app-based video players, social media, or streaming apps that appear on computer screens, smartphones, tablets, and other internet-connected devices.

Structure:

Traditional TV Advertising includes all ad spending on moving image formats broadcasted via traditional transmission channels such as terrestrial and digital terrestrial (DTTV, DTT, DTTB) TV, cable TV, satellite TV, and linear TV delivered via Internet Protocol television (IPTV).
Digital Video Advertising formats are displayed as instream and outstream video ads. Instream video ads include advertising that appears before, during, or after the streamed video (pre-roll, mid-roll, and post-roll video ads) and video overlays (text- or image-based overlays that appear while watching a video). Outstream video ads include video advertising that appears in non-video environments, e.g., in-feed on social media or text-based content (so-called native advertising).

Additional information:
The TV & Video Advertising market comprises advertising spending, users, average revenue per user, and user demographic. The market only displays B2B spending and users for the market. Figures are based on advertising spending and exclude agency commissions, rebates, production costs, and taxes. Additional definitions of Traditional TV Advertising and Digital Video Advertising can be found on the respective pages. For more information on the data displayed, use the info button right next to the boxes.

Market

Region

Region comparison

Currency

Analyst Opinion

The TV & Video Advertising market in Malaysia has been experiencing significant growth in recent years.

Customer preferences: Customers in Malaysia have shown a strong preference for digital and online video content, leading to a shift in advertising strategies. With the increasing popularity of streaming platforms and social media, consumers are spending more time watching videos online rather than traditional television. This change in consumer behavior has prompted advertisers to allocate more of their budgets towards digital and online video advertising to reach their target audience effectively.

Trends in the market: One of the major trends in the TV & Video Advertising market in Malaysia is the rise of programmatic advertising. Programmatic advertising allows advertisers to automate the buying and selling of ad inventory, making the process more efficient and cost-effective. This trend has gained traction in Malaysia as advertisers seek to optimize their advertising campaigns and target specific audiences more accurately. Programmatic advertising also provides real-time data and insights, enabling advertisers to make data-driven decisions and improve the effectiveness of their campaigns. Another trend in the market is the increasing popularity of mobile video advertising. With the widespread use of smartphones and high-speed internet connectivity, consumers in Malaysia are consuming video content on their mobile devices more than ever before. Advertisers have recognized this trend and are investing in mobile video advertising to engage with their target audience effectively. Mobile video advertising offers a unique opportunity for advertisers to reach consumers on the go and capture their attention in a highly personalized and interactive manner.

Local special circumstances: One of the unique characteristics of the Malaysian market is its diverse population and multicultural society. Advertisers need to consider the cultural sensitivities and preferences of different ethnic groups when developing their advertising campaigns. This requires a deep understanding of the local market and the ability to tailor messages and creative content to resonate with the target audience. Advertisers who can effectively navigate these cultural nuances have a competitive advantage in the market.

Underlying macroeconomic factors: The strong economic growth and increasing disposable income in Malaysia have contributed to the growth of the TV & Video Advertising market. As the economy continues to expand, advertisers have more resources to invest in advertising and marketing activities. Additionally, the government's initiatives to promote digital transformation and innovation have created a favorable environment for the development of the TV & Video Advertising market. This includes investments in infrastructure, such as high-speed internet connectivity, and the implementation of policies to support the growth of the digital economy. In conclusion, the TV & Video Advertising market in Malaysia is experiencing growth due to changing customer preferences, including the shift towards digital and online video content. Advertisers are adapting to these preferences by investing in programmatic and mobile video advertising. The local special circumstances, such as the multicultural society, require advertisers to tailor their campaigns to resonate with the diverse population. The underlying macroeconomic factors, including strong economic growth and government support for digital transformation, are also contributing to the development of the market.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on TV and video advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers traditional TV advertising (non-digital formats such as terrestrial TV, cable TV, satellite TV, and linear TV) and digital video advertising (video ad formats: web-based, app-based, on social media, and connected devices).

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, web traffic, 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, media consumption, internet users, consumer spending, 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.