15 November 2008
As the economy slides into uncertainty, the emphasis on retail activities at point-of-sale becomes more challenging and critical…
By VK Sailendra - MagiqADs
As the economy slides into uncertainty, the emphasis on retail activities at point-of-sale becomes more challenging and critical…

ADEX in 2008 grew by 15% to a staggering RM5.5 Billion. Two of the main contributors were Press and Television with RM3 billion and RM 1.8 billion respectively. Point of Sale/Retail Media accounted for only 1% of this ADEX at a measly RM57.8 Million. In the US and other mature markets Point-of-Sale advertising account for 5% of total ADEX. This represents a potential growth in excess of RM200 million within this category in Malaysia!

Look at the trend of Point of Sale advertising expenditure for the following years from Nielsen Media Research:
2003 (33.6M)
2004 (32.8M)
2005 (39.1M)
2006 (48.8M)
2007 (57.8M)

Interestingly, Point of Sale media enjoyed the second highest growth in the media sector of 33.3% in H1 of 2008 as compared to H1 of 2007 after terrestrial tv at 37%.

It’s however observed that many mainstream media platforms could be fragmented, eg. television from the original 3 channels to almost 100 channels currently. Malaysia used to have 3-4 radio stations but this is now in excess of 20. Newspapers have also become thicker and brands have an increasing challenge in communicating their brand messages through the clutter. There is so much ‘noise’ that consumers have now learnt to ‘block’ it out. So the nagging question marketers ask themselves daily is: How does a brand advertise cost effectively?

Many suggest that with the impending recession, advertisers may be forced to re evaluate how they spend their ad budgets. Should they become more tactical? Should brands target their consumers or should they target shoppers? Can they afford to rely on their consumers to recall a product feature or an offer they saw in the newspapers? Or should they catch them when they are about to make a buying decision? The recession will also redirect more traffic to the hypermarkets for essentials at better prices.

75% of brand decisions are made in-store

The Point of Purchase Institute of America otherwise known as POPAI has revealed through its study that 75% of brand decisions are made in-store and this was further reaffirmed by WPP’s Sir Martin Sorrell. Shoppers are now less loyal than they used to be and buy on impulse. They decide on the fly based on pricing, promotions, marketing collaterals and packaging. This being the case, the last mile becomes increasingly important to clinch market share or lose out!

A hypermarket outlet typically clocks between 3000 and 8,000 shopping transactions per day. At an average of 2 shoppers per transaction, and an estimated 85 hypermarket outlets between the main players (i.e. Tesco, Carrefour, Jusco and Giant), Malaysian advertisers have a point of sale hypermarket network reach of an estimated 1,000,000 shoppers per day!

In view of the large shopping traffic, the hypermarkets have now also become an effective platform for non FMCG brands to advertise in their mall areas. Banks, insurance companies and telco advertisers are also keen to get a piece of the action.

Tesco has largest shopping traffic per store.

Currently, the two largest Point of Sale media providers in the country are MagiqADs Sdn Bhd and POS Ad Sdn Bhd. They offer multiple retail media opportunities within the supermarket and the mall areas of these outlets. The formats range from entire Aisle Sponsorships that create dominant zones, trolley advertising to Floor ads inside the supermarket. The mall areas boast of billboards, wall spaces to Travelator ad opportunities. Nielsen Media Research reveals that 64% of the population has visited an outlet with Point-of-Sale media in the past month. Point-of-Sale media with one of the highest reach is Trolley Ads at 56%.

Tesco, previously reputed to be having the largest shopping traffic per store has also now become the number 1 hypermarket in terms of total sales over its competitors.

Out Of Home

Based on studies from the UK (BBC Daily Life Study), it was found that 60% of consumers’ time is spent outside of their homes. Although not conducted in Malaysia, the view is that there would be similar findings here which means that the opportunity to engage the consumer via Out of Home channels is significantly more now than before. However there seems to be a disconnect between Out of Home (OOH) AdEx versus consumers time spent Out of Home.

The Malaysian advertising market enjoyed buoyant growth of 22 percent in the first half of 2008, hitting RM 2.9 billion compared to the same period in 2007. According to the latest report from Nielsen Advertising Information Services, the growth was mainly driven by Terrestrial TV (+37%), Point-Of-Sale (+33%), Radio (+22%) and Newspapers (+16%).

Point of Sale saw the second biggest growth in advertising in the first half with beer, kids milk and phone cards as the top growth categories. By category, the major contributors to overall growth were mobile line services, local government, face care, hair shampoo & conditioner and cinema advertising.

Admission to the Malaysian retail Media Forum 20008 is by Invitation only. To secure your seat, call Vanessa Miranda on 03-2287 6130 or email This email address is being protected from spambots. You need JavaScript enabled to view it. to pre-register.

Malaysian Retail Media Forum 2008
Date: November 20
Venue: Royal Lake Club Kuala Lumpur
Time: 12.30pm

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