In a digital era where smartphones and streaming services dominate, traditional television is making an unexpected and powerful resurgence in Malaysia.
New data reveals that savvy advertisers are beginning to recognise the enduring value of TV, both in its traditional and connected forms, as they navigate an increasingly fragmented media landscape.
The Digital Dilemma: Are Advertisers Missing Out?
Over the past five years, digital ad spending in Malaysia has seen a staggering 259% increase, leaping from RM1.26 billion in 2018 to RM4.53 billion in 2023.
This shift has largely been driven by advertisers following eyeballs online, often at the expense of traditional media like television.
However, the absence of robust cross-screen measurement systems is raising concerns that this digital-first approach may be misguided.
Raymond Wong, Media Director at a multinational agency, offers insight into this evolving landscape: “The resurgence of traditional TV alongside the rise of CTV in Malaysia suggests a complex evolving media landscape. In the coming years, I anticipate a gradual shift towards a more balanced ecosystem rather than a complete dominance of either platform.”
The digital landscape, while offering impressive reach, often falls short where it truly counts: attention.
View-through Rate (VTR), which measures the percentage of viewers who watch an ad to completion, has emerged as a critical metric for gauging ad effectiveness.
Surprisingly, TV, with its higher VTR, may actually be undervalued in current media strategies.
Research shows that ad recognition increases significantly when viewers watch the entire ad rather than just being exposed to it.
This suggests that the quality of exposure on TV could be more impactful than the reach-based metrics that dominate digital planning.
The VTR Advantage: TV’s Underrated Power
In Malaysia, the potential of TV is highlighted by its superior VTR compared to online videos.
For TV campaigns, a view is recorded at 60 seconds, resulting in a VTR of 100%. In contrast, the average VTR for online videos is around 51% (according to GroupM Malaysia benchmarks).
This disparity suggests that television, despite being sidelined in many media plans, could be a more effective medium for capturing and retaining audience attention.
Edwin Muthu, Media Consultant of a local agency, comments on the impact of high VTR for TV campaigns: “The high VTR (100% at 60 seconds) for TV campaigns in Malaysia is indeed impressive and could significantly impact the perceived value of TV advertising among clients who have been focused on digital. This might lead to renewed interest in TV advertising, with clients reconsidering TV as a valuable part of their media mix.”
GroupM’s enhanced “mScreen” tool, which incorporates VTR, platform-level reach curves, and audience de-duplication, has provided eye-opening insights for advertisers.
For instance, simulations indicate that TV investments in Malaysia should increase by 26% to 112% across different target audiences, with a significant 112% increase recommended for women aged 25-44.
These findings underscore the potential for television to drive more impactful media strategies when properly integrated into the overall media mix.
The Rise of Connected TV: A New Frontier for Advertisers
While traditional TV is regaining its footing, Connected TV (CTV) is rapidly emerging as a crucial platform for advertisers in Malaysia.
According to YouGov, CTV penetration in Malaysia has reached 41%, with platforms like LG and Samsung offering innovative ad placements, including immersive 3D effects and targeting based on viewer behaviour.
This shift towards CTV aligns with global trends, where CTV has now eclipsed artificial intelligence as the most critical consumer trend for marketers heading into the second half of 2024, according to Mediaocean’s 2024 H2 Market Report.
The importance of CTV is further underscored by recent data from the United States, where CTV is projected to account for nearly 1 in 10 US digital ad dollars spent this year (9.5%), according to a March 2024 forecast.
This trend is likely to influence the Malaysian market as well, given the global nature of digital advertising trends.
Dr. Zanita Hasbullah, Media Consultant at a MNC, highlights the challenges advertisers face with CTV: “As CTV gains traction in Malaysia, advertisers may face several challenges, including a fragmented ecosystem, limited inventory, ad fraud, privacy concerns, and measurement standardisation. Addressing these challenges will require investing in advanced analytics tools, collaborating with industry bodies, implementing robust fraud detection measures, and developing privacy-compliant targeting strategies.”
The rise of CTV is driven by the explosive growth in streaming consumption, with a 40% increase in time spent streaming reported in June 2024 by Nielsen.
As more consumers gravitate towards affordable, ad-supported streaming options, CTV has claimed its largest share of TV usage ever recorded.
This trend has prompted marketers to reevaluate their advertising strategies, recognising that CTV offers a unique blend of reach and engagement that is increasingly difficult to ignore.
Innovative CTV Tools Transforming Advertising
The CTV landscape is evolving rapidly, with new tools and technologies emerging to help marketers create, target, and drive conversions more effectively.
Some of these innovative solutions include:
GenAI-powered contextual targeting: Tools like BrandDiscovery from Wurl are using generative AI to provide more nuanced contextual targeting. This technology analyses imagery, sounds, and dialogue to target based on genre, brand safety, and emotional sentiment, offering a more sophisticated approach than traditional genre-based targeting.
Interactive creative for live events: As streaming of live events increases, companies like Innovid are developing tools that allow advertisers to create interactive CTV ads tailored to live TV events. These ads can adapt based on factors like game start times or lineups, making them more relevant and engaging for viewers.
Shoppable content: Beyond QR codes, in-show ads and technologies like Amazon’s X-Ray are making content itself shoppable. These minimally disruptive ads can increase brand recall significantly and allow viewers to purchase products featured in shows directly.
GenAI video creation: AI-powered tools are making it easier and more cost-effective for brands, especially SMBs, to create CTV ads. Platforms like Paramount Ads Manager and Creatify are using AI to generate ads based on existing brand assets, potentially lowering the barrier to entry for CTV advertising.
Raymond Wong reiterates the importance of leveraging both traditional TV and CTV for maximum return on ad spend (ROAS):
“To maximise ROAS across traditional TV and CTV in Malaysia, advertisers should consider strategies such as unified audience targeting, sequential messaging, day-parting optimisation, content alignment, cross-platform retargeting, and integrated measurement. These innovative tools provide new opportunities to enhance the strategies.”
Performance-Driven Media: The Shift Towards Accountability
The growing importance of CTV also reflects a broader shift towards performance-driven paid media, which has become the new holy grail for advertisers.
In a climate of economic uncertainty, 69% of marketers now prioritise accountability and return on ad spend, focusing on performance-driven strategies that deliver measurable results.
Social media, digital display, video, and CTV are seeing increased ad spend, while some traditional channels like retail media, digital out-of-home, radio, and TV are expected to face declining investments.
Malaysian Case Studies: TV’s Proven Power
UOB’s Wholesale Banking Success
Leveraged addressable TV and first-party data
Reached 932,000 affluent business owners
Results: +8% spontaneous awareness, +6% total awareness, +4% preference
Sunsilk’s “Rambut Tetap Boom!” Campaign
Partnered with Astro to integrate with popular drama IPs
As the advertising landscape continues to evolve at a rapid pace, Malaysian marketers must adapt to the changing dynamics of both traditional and connected TV.
The rise of CTV, coupled with the enduring power of traditional television, presents a unique opportunity for advertisers to craft more effective and efficient media strategies.
“Cross-screen measurement is becoming increasingly crucial in crafting efficient media strategies, especially given the growing overlap between audiences across various video platforms. It allows advertisers to understand how consumers interact with content across different devices and platforms, enabling more precise targeting and efficient budget allocation,” argues Gurmeet Kaur, a Senior Media Partner.
By leveraging the strengths of both new and traditional platforms, and by incorporating metrics like VTR to assess the quality of exposure, marketers can better navigate the multiscreen maze and achieve significant advertising success in the Malaysian context.
Dr. Zanita Hasbullah points out potential innovations that could shape the future of TV advertising in Malaysia: “Several innovations could have a significant impact, including addressable TV, interactive ads, QR code integration, AI-powered content recognition, voice-activated advertising, shoppable TV, and dynamic ad insertion. The adoption and impact of these innovations will depend on factors such as technological infrastructure, regulatory environment, and consumer acceptance in Malaysia.”
The resurgence of TV—both traditional and connected—serves as a reminder that in the rush towards all things digital, the living room screen still holds a vital place in the media mix.
Smart marketers are rediscovering that TV’s ability to capture attention and deliver impactful messages is key to driving results in an increasingly complex advertising environment.
As new tools and technologies continue to emerge, the future of TV advertising in Malaysia looks brighter than ever, offering unprecedented opportunities for brands to connect with their audiences in meaningful and measurable ways.
