M’sian adex records 9% growth

  • Business
  • Wednesday, 19 Feb 2003

LOCAL advertising spending on media space/airtime reached RM3.45bil in 2002, growing at a much faster rate of 9% last year compared with 5% growth recorded in 2001. 

Advertising media specialist MindShare Malaysia forecast in its newsletter that the advertising expenditure (adex) would post a moderate 6% growth this year against the backdrop of cautious optimism in the local business sentiment.  

Based on data from Nielsen Media Research, the top three highest spending categories by industry remained unchanged in 2002 with the financial/insurance sector taking the lead with a 9% share, followed by toiletries & toilet goods (8%) and telecommunications (8%). 

The fastest growing segment was the government/corporations category, which registered a 45% year-on-year increase contributed by the road safety campaign worth RM17.7mil. 

Not surprisingly, the tobacco company/lighters category was the largest decliner (-22%) as the self-imposed ban by the big cigarette companies took effect in the fourth quarter of 2002. 

Information technology also registered a contraction (-13%) as software and solution providers curtailed spending. 

Based on data from Nielsen's survey, MindShare said newspapers continued to dominate strongly in 2002 with a 63% share of the total adex. Newspaper advertising reported a growth of 13% to RM2.185bil last year. 

Free-to-air television took 27% of the adex with a low 5% growth to RM921.9mil. (Nielsen doesn't monitor cable TV adex.) 

Ad spending on magazines declined 14% with a corresponding 1% drop in share-of-adex to 4% last year. 

Radio was the star performer, registering a 20% growth to garner a 4% share in advertising spending. 

MindShare said that with rate increases in 2003 announced by several radio stations, this medium was likely to continue its upward trend. 

According to Nielsen Media Research's findings, media spending by tobacco companies – once the country's biggest advertisers – had steadily dropped over the last three years, from RM171mil in 2000 to RM106mil in 2001 and then to RM87mil last year. 

On classified ads – the single largest product category – Nielsen said adex grew by 9.7% last year to RM496mil. 

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