IPG Mediabrands Malaysia CEO officer Bala Pomaleh
PETALING JAYA: The local advertising industry is poised for a stronger showing next year, supported by a robust economy and acceleration of the digital transformation space.
Industry leaders and analysts said the robust ringgit and foreign investor confidence are plus points that would spur the ad industry.
Apart from this, the rapid digital transformation taking shape in the ad space would be an added boost to the industry, they noted.
Economists expect Malaysia’s economic growth to hit 4% to 5% for next year, with a similar forecast for 2024.
Real gross domestic product (GDP) rose by 5.9% in the second quarter of 2024 (2Q24), up from 4.2% in 1Q24, underpinned by stronger private consumption and further recovery in exports amid a global tech upcycle.
IPG Mediabrands Malaysia chief executive officer Bala Pomaleh told StarBiz that Malaysia’s accelerated digital transformation is putting it in good stead to compete internationally.
He said the country recently climbed to the 33rd spot out of 133 nations in the 2024 Global innovation index.
“This marks a significant improvement, and puts us ahead of Thailand, Vietnam, the Philippines and Indonesia. This year, the Digital Ministry also announced that over 5,000 companies were granted Malaysia Digital status, with over 73% of them local firms.
“The companies are set to further explore high-value digital products and services using the latest technologies such as artificial intelligence (AI), blockchain technology, the Internet of Things, cybersecurity, financial technology, and drones.
“As Malaysia positions itself as a hub for digital innovation, it provides the advertising industry a strong opportunity to adopt future tools and be an active catalyst for change through the work we do, supporting its development as a leading digital economy,” Bala noted.
Havas Malaysia CEO Nizwani Shahar
Havas Malaysia CEO Nizwani Shahar said the advertising landscape is expected to evolve rapidly in 2025, driven by two primary factors: digital transformation and purpose-driven marketing.
The continued expansion of digital platforms, whether social media, eCommerce, or new immersive technologies like augmented reality and AI would offer more dynamic opportunities for brands to connect meaningfully with consumers, she said.“At Havas, we believe that people increasingly expect brands to not just sell, but stand for something. Purpose-driven marketing, where brands commit to societal impact will be crucial.
“Consumers, especially Gen Z, are more inclined to support brands that align with their values. Therefore, brands that can seamlessly integrate social good with digital innovation will lead the charge in 2025,” she said.
According to senior adviser of the Association of Accredited Advertising Agents Malaysia Datuk Johnny Mun, the growth of the ad industry hinges on developing new talent while blending younger, tech-savvy generations with industry veterans.
He said the mix of fresh perspectives with traditional expertise would help ad agencies stay innovative without losing sight of proven strategies. Among others, he said AI and automation would drive the ad industry by next year.
Mun, who is also Oxygen Advertising managing director, said AI would enhance personalised marketing, making ads more effective through predictive analytics, noting that AI-powered content creation would streamline ad production and data analysis.“For 2025, the advertising industry in Malaysia is expected to see continued robust growth, primarily driven by digital advertising formats. In 2024, advertising expenditure (adex) is forecast to grow by 8.5%, reaching RM9bil, with digital channels such as social media, video, and mobile advertising leading this expansion.
“Next year, the growth is expected to further strengthen, supported by digital platforms, influencer marketing, and data-driven strategies. This acceleration reflects ongoing trends of increased mobile usage and higher Internet penetration,” he noted.IPG Mediabrands’ Magna Global Ad Forecast pointed out that adex in Malaysia is expected to grow by 5% in 2025.
“With brands placing greater emphasis on driving sales, rather than brand building, we see a marked shift when it comes to the choice of mediums. While digital is measurable and a sure way to drive sales, upper funnel activities are paying a price.
“As a result of this, there is greater potential for efforts to drive cross-channel campaigns that help build brand awareness, alongside experiences and trials that help drive sales. Traditional partners are also poised to create more opportunities for on-ground experiential events and engaging content that could help drive brand love,” Bala noted.
Association of Accredited Advertising Agents Malaysia (4As) senior advisor Datuk Johnny Mun
Nizwani said Malaysia’s digital economy is set to contribute 25.5% to the gross domestic product by 2025, and this would drive higher digital ad spend.
“We expect a significant portion of advertising budgets to flow into video content, influencer marketing, and programmatic ads. In 2024, we see a moderate growth of 4% to 5% in adex as the market continues its recovery.
“However, in 2025, with brands doubling down on digital and integrated campaigns, we can expect an increase of 7% to 9% in adex.
“The growth will be especially noticeable in sectors like automotive, technology, and retail, where we’re already seeing renewed demand for innovative brand-building efforts,” she said.
