Adex contracts 5% in Jan to RM1bil

PETALING JAYA: Cautious sentiment among advertisers saw advertising expenditure (adex) contracts 5.4% year-on-year in January to RM1.05bil from RM1.11bil in the previous corresponding period.

The slump in oil price and weakening ringgit against the US dollar had had an impact on sentiment, said Association of Accredited Advertising Agents Malaysia (4As) president Datuk Johnny Mun.

“The spiralling fuel prices can have a chain reaction affecting everything else,” he said.

In terms of advertising medium, only in-store media registered year-on-year growth, according to data by Nielsen.

Mun reckoned that marketers had been putting more money into trade to-push-merchandise.

Pay-television, newspapers and free-to-air television commanded the bulk of ad spend in January.

Going forward, Mun believed that adex would pick up ahead of the impending goods and services tax (GST) on April 1.

“All else being equal there should not be a contraction as more may want to push their goods ahead of the GST.”

According to Nielsen, advertisers spent RM14.06bil last year on domestic media space/airtime (excluding Internet and outdoor media).

Cinema advertising rebounded from a low single-digit growth in 2013 to record the highest percentage growth among all monitored media last year (see table).

Two categories – radio and magazines – saw a decline in ad revenue.

While digital adex is not monitored, it is widely believed that digital was among the media enjoying double-digit adex growth in 2014.

Fast-moving consumer goods companies were the four biggest advertisers of the year: Unilever, Nestle, Procter & Gamble, and Colgate Palmolive.

Two ministries made it to the top 10 biggest advertisers list. They are the Communication and Multimedia Ministry (ninth spot compared with 113th in 2013) and Natural Resources and Environment Ministry (eight place from 15th in 2013).

In terms of product/service categories, local government institutions retained the No.1 spot.

It was followed by women facial care, mobile line services, hair shampoo and conditioner, and growing-up milk for children.

Categories that had been in the top 10 in 2013 but dropped out last year were airlines and phone and accessories. Replacing them were cinema/movie advertising and cleaning agent (laundry).

Source: The Star