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Saturday, January 15, 2011

Ad spending hit record high (STAR)

ADVERTISERS in the country boosted their media spending by 15.8% to a record RM7.66bil last year (excluding pay TV), according to The Nielsen Company Malaysia. This marked a return to the same double-digit growth last seen in 2008, before total adex growth dipped to 7.4% in 2009.

However, the second half of last year showed signs of a slowdown, with adex growing less strongly than the 22% witnessed in the first half.

Newspapers continued to dominate as a category last year, attracting RM3.9bil in adex which represented a 14.2% hike from the year before. Free-to-air (FTA) TV adex, meanwhile, jumped 18.2% to RM2.9bil.

Many heads of media specialist companies interviewed by StarBizWeek expect the same or slower total adex growth this year.

However, GroupM Malaysia CEO Girish Menon predicts a more aggressive scenario for 2011.

He cites three factors that will boost adex in 2011: new financial industry players will launch their services this year and require brand-building, some 20 tablets are expected to enter the market to compete with iPad, and a new round of telco ad war will begin with more players in the market.

According to Nielsen, Internet advertising grew 28.9% last year to RM52.1mil based on data from six major online players.

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