(Adoimagazine.com) - It goes without saying that a year filled with big sporting events guarantees higher advertising expenditure (ADEX) but that was no the case last year despite being an eventful year with the London Olympics and the Euro Cup.
According to Carat Media's latest media update, Malaysia's ADEX fared badly in the second quarter of last year, reporting a meagre 1.8% as compared to Asia Pacific and global growth averages, 2.3% and 2.7% respectively.
Malaysia's 2012 ADEX marked a low 5% and this was contrasted with the 2005 ADEX which was 3.1%. What the comparison actually shows is that despite being an eventful year, compared to 2005 which preceded a year of general elections, the Euro Cup and the Olympics and warrants a weaker ADEX, 2012 experienced an ADEX slowdown.
The report also revealed that among all the media (press, FTA TV, Pay TV, radio, magazine, in-store media, out-of-home and cinema), the press reported the highest ADEX with 39% or RM3,916 million. Compared to 2011, significant ADEX growth is seen for Pay TV and out-of-home. For Pay TV, the ADEX increased by RM391 million, from RM2,198 million in 2011 to RM2,589 million in 2012 and this can be attributed to the larger coverage of the media. As for out-of-home, it only increased by RM21 million, from RM108 million in 2011 to RM129 million in 2012 but it was still a growth and this can be attributed to the "aggressive support from banks and the automotive sectors", according to the report.
Three main factors were identified as to why Malaysia's 2012 ADEX may have underperformed. The update said that "cautious optimism among consumers and advertisers" transpired last year and this occurred with the anticipation of the general election. The other two factors that lent caution in the marketplace were the Eurozone debt crisis and the US fiscal cliff.
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