The Advertising Expenditure Trend in Malaysia Situational Analysis

Situational analysis

The current scenario

The advertising expenditure trend in Malaysia had changes in this few years, as the digital media and others modern advertising media are keep growing.

 However, the rise of digital media doesn’t mean the traditional media are faded out. Statista 2018 shows that the traditional media still continue take large portion of advertising spending, such as newspaper and television they still maintain the first and the second place of the overall expenditure, while the internet is only on the third place (Appendix 1).

The newspaper are consider one of the important media to advertise is because the newspaper in Malaysia is highly segmented which means the advertiser can reach their target audience more effectively. There are various type of newspaper in Malaysia according different language since Malaysia is a multi-regional country. Therefore, advertiser can advertise on different newspaper based on their target audience. Besides that, newspaper are provide visibility of the ads with colour to catch audience’s attention and the sources of message are considered more reliable than internet’s message. Therefore, newspaper able to maintain top of the media use to advertise.

Based on the Statista 2018, television is the second popular media use by advertiser which also considered as traditional media. The reason why television are still using by marketer is because television are allow both visual and sound effect to catch audience’s attention. Besides that, normally the screen are biggest than mobile phone or computer, so it might bring more impressive impact to audience especially for those fear appeal advertisement.

And the next media that used by most of the advertiser is internet, the result show there are total 73% of Malaysian are internet user and among the internet user, most of the Malaysia are highly using smartphone in their daily life (Nielson 2018). Therefore, more and more advertiser choose to reach the target audience by using internet media since it can reach the customer anytime and anywhere. Internet allow the marketer conduct their advertising more effectively and it could be in different way, it can be audio, video or just image advertisement.

Current advertising trend

Nowadays, plan an advertising project are become more and more difficult and sophisticate since so many media and advertise method are coming out. The current trend of the advertising media changing, other than traditional media, transit advertisement is one of the popular method use by marketer. Transit advertisement is an advertising placed on the public transportation such as MRT, LRT, buses, train or taxis. This method able to provided high visual impact of the advertisement since it is normally in colour form. Besides that, transit ads allow marketer to reach the target audience in daily basis especially for those people are taking public transport daily. Therefore, the marketer would more likely to spend on billboard if their target audience will take the public transport frequently.

The second advertising trend is the billboard, it can be refer as a large poster that allow the advertiser place their name, the image of the product and display straightforward message to customer. This can highly reach those customer that have own vehicle or people that might pass by the street daily to work since the billboard will be placed at somewhere highly visible. It enable the marketer capture the customer’s attention with an attractive message and simple message and sometimes it might cost lower than television media (Appendix 2.2). Based on the research, the total number of registered vehicles at 28,181,203 units while the total population of Malaysia is 31.83 million (Driven Communications 2018). That means there are 0.88 vehicles for every person in Malaysia. That is why the marketer are increasingly use billboard as one of the media since it can reach the target audience more effectively.

Point of sales is also one of the popular advertising media used by marketer, it is one of the most effective methods, utilizing flexible messaging technology to capture customers’ attention right where they buy (Media Caddy 2016). Normally the POS system will placed infront the relevant product to stimulate customer’s purchase intention. Once the customer saw the POS display, it will encourage customer to make impulse purchase. Therefore, most of the marketer are using POS system to display their product in order to attract the audience and try to persuade customer to make purchase.

Competitive IBP Analysis

Enchanteur has a direct competitor in the industry which is Silkygirl. This both brand are working hardly in capture the market share in order to gain competitive advantage in the market as well. The advertising method that use by Silkygirl are television, internet, newspaper and sales promotion (theedgemarket 2018). Silkygirl mostly advertise their products through the traditional media like television to reach the mass market. For example, Silkygirl will use the channel of Iklan TV to advertise its advertisement to the public as well (appendix 1). Besides that, Silkygirl also using the Internet as their advertising method like YouTube. It using Youtube to advertise its products is because the trend of people using YouTube to watch video, so it was a great way to expose the products more easily to the public. Other than that, Silkygirl also organize many kind of sales promotion through social media like posting a post in the Facebook to attract customers (Appendix 2). Thus, Silkygirl also trying all the advertising method to advertise its products in order to capture more customers.

Regulatory, Social and Ethical Aspect

Regulatory is refer as all the rules that imposed by the government in order to govern company’s advertising activities and make sure the marketplace is having the Fair competition. Malaysia Communications and Multimedia Commission (MCMC) is to promoting and regulating the communications and multimedia laws in Malaysia (MCMC 2018). It prohibited the anti-competitive activities, as well as the development and enforcement of access codes and standards. Besides that, RUKUN NEGARA philosophy must be concerned when create the advertisement, it must able to reflect Malaysia’s culture and also the multi-regional of the Malaysian.