Digital continues to drive adex, forecast to grow 17%

  • Advertising & Media
  • Monday, 03 Feb 2020

Acting head of Amplifi Malaysia Satya Das says 2020 is projected to be a challenging year.

PETALING JAYA: Digital will continue to energise adspend growth in Malaysia and is forecast to grow 17.2%, reaching US$522mil and 37.7% share of total market spend this year, according to the latest global forecast by Dentsu Aegis Network.

The agency network, which is part of Japanese international advertising giant Dentsu Inc, said the growth would remain strong into 2021, putting digital’s share of adspend at 41.9% at the start of the new decade.

“Within digital, mobile and video are fuelling expansion. Both are forecast to have strong momentum in 2020 at 23.3% and 42% growth respectively. TV and newspapers take home 16.3% and 25.2% of ad-spend share respectively, with out-of-home (OOH), cinema and radio claiming 9.1%, 3.4% and 7.5% of share.

“Digital offers the potential to breathe new life into all traditional formats in the Malaysia market as voice assistants, addressable TV and programmatic ads drive global spending in these mediums, ” it noted.

Dentsu Aegis Network’s latest advertising spend forecasts, based on data from 59 markets, predicts global growth of 3.9% in 2020, amounting to US$615.4bil and building on growth of 2.6% in 2019.

The agency added that major events like the Tokyo Olympics, UEFA Championships, US Elections and Apec summit in Malaysia would be a significant driver of increased ad spend around the world as advertisers look to capitalise on huge global audiences.

“Our forecasts for Asia-Pacific shows ad-spend growth of 4.2% with a drill down showing growth in Malaysia of (4.5%), Australia (3.8%), China (5.6%) and Japan (2.0%) with India predicted double digits at (10.9%) – largely driven by digital which is in part powered by booming smartphone adoption, ” it said.

Commenting on the latest forecast figures, Nicky Lim, CEO Dentsu Aegis Network Malaysia, said: “As I have long foretold, digital continues to rise with significant momentum and will be pivotal to the transformation and future growth of the Malaysian advertising industry.

“Global trends indicate that investment in voice assistants, addressable TV, data science and programmatic ads are fuelling growth across traditional formats like radio, TV and OOH.

“Embracing digital by flexing and re-shaping these mediums to meet market demand for these types of investments is the path that offers the best chance of exponential yet sustainable growth for the industry as a whole, ” he said.

Satya Das, acting head Amplifi Malaysia, said 2020 is projected to be a challenging year with minimal growth expected in the advertising space. He added that year on year, advertising expenditure is becoming increasingly fragmented.

However, he noted there are two key sporting events this year - the Tokyo Olympics and the UEFA European Football Championships - which would drive ad investment.

Amplifi is the media investment arm of Dentsu Aegis Network.

“Trends from 2019 into 2020 indicate that ad-spend will be directed towards content creation, performance campaigns, social media, technology development, market automation data and identifying brand-building opportunities that offer improved market share and brand scores.

“We will also see an increased focus on digital media energised by programmatic and data science, ” Das said.

He said media vendors should resist the temptation to offer solutions that drive brands in the short-term and instead invest in and/or refresh services offerings that deliver on business outcomes for brands.

Media agencies unquestionably need to embrace the new age of marketing automation tools and use them across media platforms for more efficient planning, he added.

“In other words, using data science as a solid foundation to underpin an integrated media planning approach will secure successful outcomes, ” Das said.

On the worldwide ad spend, Dentsu Aegis Network Global CEO for media Peter Huijboom said was a lot to look forward to in 2020.

“Our forecasts point to a boost in ad spend as we enter a year of important political and sporting events including Tokyo Olympics and Paralympics, UEFA European Football Championships and the US presidential elections.

“Looking at local trends the picture is more mixed with some key markets slowing down while emerging economies are powering up.

“Marketers in 2020 need to manage these contrasting dynamics; long and short term, global and local, digital and traditional.

“Ultimately, they need to remain focused on long term sustainable growth by winning, keeping and growing their best customers, ” he said.

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Digital , drive , adex , forecast , grow , 17% , Amplifi Malaysia , Satya Das , TV , radio , Dentsu Aegis ,


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