DIGITAL FORMATS DOMINATE MALAYSIA’S ADVERTISING ECONOMY

Malaysia’s advertising market continues to evolve within a broader environment marked by economic ambiguity and geopolitical headwinds. One of the most immediate concerns for 2025 stems from shifting U.S. trade policy.

While tariffs on Malaysian exports were initially raised to 24%, they were later reduced to the general rate of 10% amid ongoing U.S. trade negotiations. Still, instability has injected a sense of caution into the market.

As Malaysia ranks as the 15th largest exporter to the U.S. with $54 billion in goods shipped in 2024, this uncertainty has begun to influence brand behavior—limiting investment appetite, concentrating spending in short-term digital formats, and increasing the demand for flexibility across campaigns.

In 2024, Malaysia stood as the 36th largest economy globally with a GDP of $400 billion and a population of 33 million. Its advertising market was valued at MYR 9 billion ($2 billion), making it the 35th largest ad market. Digital formats dominated the media mix, accounting for 76% of total ad revenues, while television contributed just 8%, a steep drop from 16% in 2019.

Print, radio, and OOH held 6%, 3%, and 5% shares respectively. Government and public sector were the top-spending industry at $60 million, followed by personal care and household goods at $50 million, and retail at $40 million. Procter & Gamble led as the largest advertiser, followed by Kementerian Komunikasi Malaysia and Astro Awani Network.

On a per capita basis, Malaysia’s advertising spend was $60, placing it 44th globally, below the world average of $159.

2024: +8.4% GROWTH IN MALAYSIA

In terms of performance, 2024 was a year of notable growth. Total advertising revenues rose by +8.4% year-over-year, supported by an economy that expanded by +5.9% in nominal terms (with real GDP growing +5.1% and inflation at +1.8%). Digital Pure Players saw ad revenues grow by +13.6% to MYR 6.8 billion ($1.5 billion), reinforcing their 76% share of the total market.

Within digital, social media led the charge with +18.1% growth, reaching MYR 3.7 billion ($800 million). Search advertising followed with +10.5% growth to MYR 2.1 billion ($500 million), while digital video expanded by +10% to MYR 600 million ($100 million). Static display advertising dipped slightly by -0.9%.

In contrast, traditional media revenues fell by -5.6% to MYR 2.1 billion ($500 million). TV was hit hardest, down -11.9% to MYR 800 million ($200 million), while publishing dropped -4.4%, audio -8.2%, and OOH bucked the trend, rising +6.8%.

Looking ahead, 2025 is expected to deliver more moderate growth. With real GDP projected to rise by +4.1% and inflation by +2.4%, advertising revenues are forecast to grow by +6.4% to MYR 9.5 billion ($2.1 billion), elevating Malaysia to the 34th largest ad market.

Digital formats will continue to thrive, with ad revenues climbing +9.1% to MYR 7.5 billion ($1.7 billion) and accounting for 78% of the market. Social media will grow +11.4% to MYR 4.1 billion ($900 million), search by +8.1% to MYR 2.3 billion ($500 million), and video by +7.6% to MYR 700 million ($200 million).

Traditional media will see further declines, down -2.6% to MYR 2.1 billion ($500 million). TV is expected to decline -3.4%, publishing -6.8%, and audio -6%, while OOH continues its resilience with a +6.1% increase. Ad spend per capita will rise modestly to $63, placing Malaysia 43rd globally in terms of advertising intensity.

THROUGH 2029, MALAYSIAN AD SPENDING GROWTH +4% ANNUALLY; DIGITAL GROWING BY +6.2% ANNUALLY

Over the longer term, the Malaysian ad market is projected to grow steadily. Through 2029, total ad revenues are expected to increase at a compound annual rate of +4%, with digital expanding by +6.2% per year and traditional media contracting by -4.9%. By 2029, Malaysia will maintain its position as the 34th largest ad market.

Per capita ad spend is forecast to reach $71, ranking 41st globally. Digital will dominate even more decisively, reaching 85% of total advertising revenues, up from 76% in 2024, while television’s share will decline to just 5%, compared to 8% today.

Stephanie Foong, Chief Investment Officer, IPG Mediabrands Malaysia, said:

“The advertising expenditure outlook for Malaysia in 2025 anticipates an overall growth with some cautions due to geopolitical uncertainties and weak consumer sentiment in some segments. The growth is driven by digital advertising, particularly in social media (+11%), search (+8%) and digital video, with traditional media being pushed to evolve to maintain relevance.

Digital advertising is also intensely cluttered with more formats introduced across all platforms, calling for innovative and creative use of formats to demand attention. OOH with a projected 4% growth and the rise of digital OOH, can be seen as an extension to digital campaigns and a good touchpoint for brand awareness.”

KEY GLOBAL TAKEAWAYS: ADVERTISING PROVES RESILIENT AMIDST ECONOMIC UNCERTAINTY

• The Summer Update of MAGNA’s Global Ad Forecast, released on Monday, June 16, projects global advertising revenues for media owners to reach $979 billion in 2025, up +4.9% on 2024.
• The advertising revenues of Traditional Media Owners (TMO) — including TV, radio, publishing, and out-of-home — are expected to erode by -3% to $261 billion, due to economic uncertainty. Adjusted for the lack of US elections and Olympics in 2025, global TMO revenues would be flat.
• Digital Pure Players (DPPs) ad sales will grow +8% to $709 billion (73% of total ad sales). DPP growth is driven by rising usage, AI innovation, e-commerce competition, and retail media networks – expected to generate $163 billion.
• Search and Retail Media ads (e.g., Google, Amazon, Walmart) will rise +8% to $359 billion, remaining the largest DPP segment. Social Media ad sales (Meta, TikTok) will grow by +11% to $239 billion, while short-form video (YouTube, Twitch) will increase +7% to $80 billion.
• In most markets, total ad market growth will range from low single digits (Germany +3%, Japan +4%) to mid high single digits (Canada, Australia, France +5%; Italy, Spain, UK +6%; India +8%).
• The advertising economy in Asia Pacific grew by +7.9% in 2024 to reach $288 billion, with real GDP increasing by +5.3% in 2024.
• APAC as a region is still dominated by China, which represents more than half of total ad revenues. When combined with Japan, Australia, India, and South Korea, those five large markets represent 87% of total APAC revenues. ​
• The global ad market will re-accelerate in 2026 as the economy stabilizes and major events return, incl. Winter Olympics (Italy), FIFA World Cup (US), and US Midterms. Global ad sales are projected to rise +6.3%, surpassing one trillion dollars for the first time.

Vincent Létang, EVP, Global Market Research at MAGNA, and author of the report, said:

“MAGNA had long anticipated a slowdown in the global advertising market in 2025 following an exceptionally strong 2024. However, the deterioration in the economic outlook and a decline in business confidence since our December update have prompted us to revise our full-year 2025 growth forecast downward by 1.2 percentage points, to +4.9%.

So far, the slowdown has been relatively modest. Digital media, in particular, performed better than expected in the first quarter. MAGNA believes that the marketing industry has learned important lessons from the COVID period—recognizing the value of maintaining consistent communication and adopting balanced media strategies, especially during times of consumer uncertainty.”