Peter Choo, former CEO of outdoor broadcast company Hi-Q Media, will head the venture and report to Optimedia's general manager Jeffrey Raymond. The unit will open its doors in January.
"With the way outdoor advertising is developing in Malaysia, it makes sense to offer our clients a specialist service," said Raymond. He added that a name for the company has not yet been finalised.
The venture comes at a time of heavy investment in Malaysia's outdoor sector. Outdoor buying specialist Posterscope was launched by Aegis in July in response to strong market growth.
Outdoor advertising, driven predominantly by telecom firms, is estimated to grow by 15 per cent to $80 million in an otherwise stagnant year for Malaysia's ad industry.
Giant billboards are the most popular formats, although truck-side advertising, LED panels and digital screens in office buildings and shopping arcades are also driving growth.
The market is highly fragmented with more than 60 major players. However, this month, Media Prima, the country's largest media company, acquired stakes in three outdoor advertising firms — UPD, The Right Channel and Big Tree Outdoor. Media Prima's 70 per cent Rmb 97 million ($27 million) stake in Big Tree Outdoor, will make it the country's largest player in the sector. The purchase is expected to help add Rmb10.5 million to Media Prima's net profit in 2007.