According to the latest Nielsen Advertising Information Services report, the growth was driven by terrestrial TV (+29 per cent), newspapers (+18 per cent), radio (+18 per cent), magazines (+6 per cent), point-of-sale (+27 per cent), outdoor (+8 per cent) and internet (+55 per cent).
Newspapers and terrestrial TV continue to command the bulk of total advertising spend measured at 52 per cent and 37 per cent respectively, followed by radio (five per cent), magazines (two per cent) and outdoor (two per cent).
The growth in advertising spend in the first half of 2010 is consistent with Nielsen's latest findings on consumer confidence in Malaysia. In Q2 2010, the consumer confidence index rose to 99 points (from 98 points in Q1 2010), compared to 87 points in Q2 2009, based on Nielsen's Global Consumer Confidence Survey.
The RM1.8 bn (approx. US$566 mn) in newspaper advertising revenues can largely be attributed to the increased spending in the credit card, banking/ finance, furniture retail, hypermarkets and residential estate categories. The growth in the residential estate category is one of key indicators that advertiser sentiment has improved.
Terrestrial TV advertising for the first half of 2010 was RM1.3 bn (US$409 mn), and its growth was the result of increased spending in categories such as hair shampoo and conditioner, laundry detergent, mobile line services, bath additives, woman facial care and fast food.
Radio adspend hit RM184 mn (US$57.8 mn), contributed by growth in spending by university, communication, newspaper and magazine and bank/ finance categories. For point-of-sale, the top growth categories are snacks and laundry detergent, while phone and accessories, mobile line services and real estate agent categories drive internet adspend growth.
"We expect the advertising market in Malaysia to continue to experience moderate growth this year, spurred by the renewed advertiser and consumer sentiment and the expected expansion in the Malaysian economy of 6.5 per cent for 2010," said Danyal Abdul Malik, managing director - Nielsen Audience Measurement, The Nielsen Company.
Mobile line services, women facial care and local government categories continue to dominate. The advertising categories that have remained in the top three are mobile line services leading at RM 150 mn (US$47.1 mn), followed by woman facial care (RM 102 mn or US$32 mn) and local government institutions (RM 100 mn or US$31.45 mn). The hair shampoo and conditioner category bounced back from eight to fourth position at RM 88 mn (US$27.6 mn), led by increased spending on new product campaigns. New entrants to the top category list are laundry detergent (RM 61 million) and furniture retail (RM 57 mn or US$18 mn) at eight and tenth positions respectively.
The are four telecommunications players in the top 10 advertiser list while Unilever and Procter & Gamble assumed top two positions.
Unilever (RM 136 mn or US$43 mn) and Procter & Gamble (RM 122 mn or US$38.37 mn) assumed the top two advertiser positions in tandem with the spike in advertising spending in growth categories such as hair shampoo and conditioner and laundry detergent in the first half of this year.
Telecommunication companies such as Celcom (RM 69 mn or US$21 mn), Digi (RM 61 mn or US$19 mn), Maxis (RM 44 mn or US$44 mn) and TM (RM 36 mn or US$11.32 mn) ranked third, fourth, seventh and ninth in the top 10 advertiser list.
Their growth in adspend in the first six months of 2010 compared to the same period last year, were due mostly to advertising promotions on broadband, festive greetings, product and World Cup tie-ins and sponsorships. L'Oreal Malaysia entered the top advertiser ranking in 8th position, driven by campaigns in categories such as hair care, face care and deodorant.
