First quarter advertising expenditure goes up by 5%

  • Business
  • Saturday, 14 May 2005

MONITORED advertising expenditure in Malaysia grew 5% in the first quarter of this year compared with a year ago, ZenithOptimedia Malaysia chief executive officer Gerald Miranda said.  

This, however, did not include the growing spending on advertising on Astro TV, outdoor and ambient and non-traditional media, which were currently not monitored and for which reliably accurate figures were not readily available, he said in a statement.  

Miranda said the top five categories contributing to the increase were mobile interactive services, mobile line services, residential estates, Government institutions and airlines. 

Newspapers remained the biggest advertising medium in Malaysia in the first quarter of this year, accounting for 62% of total spending, television with 28%, radio and magazines 4% each, while cinema and others took 2%. 

“We expect advertising spending to pick up momentum as the year progresses and end closer to 10% for the full year,” he added.  

The media agency has forecast local advertising spending to grow 15% next year, bolstered by the FIFA World Cup, and 10% in 2007. It also estimates worldwide advertising spending to grow 5.4% in 2005, 6.5% in 2006 and 6.1% in 2007. 

Miranda said with projected billings of nearly RM5bil this year, the advertising sector was already an important contributor to the Malaysian economy, with a growing share of the economic output. 

“As a proportion of the gross domestic product, our advertising expenditure now stands at a historical high of over 1%, well above the 0.8% regional average for Asia-Pacific and 0.99% for the world,” he added. 

Asia-Pacific continued to outpace North America and Europe in spending, accounting for US$75bil, or 20.2%, of total world advertising last year. The region grew 7.8% compared with 6% in North America and Europe’s 6.1% in 2004. 

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