AEGIS Media Malaysia sees more creative opportunities within the digital segment of advertising.
Executive chairman Margaret Lim notes that digital advertising expenditure (adex) grew 30% in 2010 to reach RM52mil (0.8% share of total adex) and is expected to more than double this year.
“In 2011, digital is projected to more than double to reach RM130mil or close to 2% share of the advertising market,” she tells StarBizWeek in an e-mail.
Lim explains that opportunities and growth prospects will come from social media and mobile, which has seen an increase in demand with the rise of new mobile devices such as smart phones and tablets, which is improving mobility and connectivity for communication.
“With the rapid rise of social media and its implications, we (need to) quickly respond by having specialists to manage this,” she says.
Aegis Media last month rebranded its units IF/ Interactive Sdn Bhd, a digital interactive company, with Isobar, the world’s largest digital agency network, into one entity – IF Isobar.
“(It was) rebranded to ‘IF Isobar’ to align itself with the consistent (digital) know-how, systems and processes,” says Lim, adding that the IF Isobar team, which now has a staff strength of 30, would be able to leverage an existing network that spans across 32 markets worldwide.
“(By) joining hands together with a world player, (it has opened up) a big wide world of international clients to us. We’ve brought together the finest digital pioneers with the smartest traditional marketing talent. This combination is reflected in what we do and how we do it,” she says.
Aegis Media acquired IF Interactive in 2008. Isobar is part of Aegis Media and a wholly owned subsidiary of Aegis Group plc.
Aegis Group launched its first digital business in 1995 in Britain and thereafter started acquiring leading digital agencies in major markets. These companies were all rebranded Isobar to better align itself with a growing client demand for full service solutions in the digital space.
Lim explains that Isobar’s global vision is to bring people and brands together like never before.
“With more than 2,200 people in a network that spans across 32 markets worldwide, IF Isobar has been tasked with creating ideas that combine creativity, planning, technology and data.”
On total adex outlook for this year, Lim expects it to grow at a slower rate as she feels that economic growth and sentiments worldwide are declining.
“The Government is looking at a 5.5% GDP (gross domestic product) growth in 2011 which should take adex growth to between 10% and 14% this year.”
Total adex recorded a double-digit growth of 16.2% to RM4.09bil in the five months ending May 2011 versus a year earlier.
According to data from Nielsen, newspapers attracted the most ad spend in the first five months of the year, accounting for RM1.7bil of total adex, which was a growth of 14.3% from RM1.5bil in the previous corresponding period.
This was followed by free-to-air TV adex, which rose 12.9% to RM1.16bil, while pay-TV ad spend grew 29.3% to RM861.36mil.