Total digital ad spend in Malaysia 2022 (it’s 60% of ADEX)

According to Statista, digital ad spending in Malaysia has surpassed traditional advertisement (TV, radio, newspaper, out-of-home) since 2020.

It coincides with the pandemic which accelerated the digital transformation of almost all industries, not just in Malaysia but every part of the world.

In 2022, we are expecting more than 60% of advertising expenditure (ADEX) in Malaysia to be invested in digital media led by Google, Facebook & co.

While the digital ad spend in Malaysia was reported at RM2.24 billion in 2019, how much will it grow in 2022? Let’s figure it out!

First, how much is the total ADEX in Malaysia?

According to the same Statista report above, the total advertising expenditure in Malaysia is expected to be RM6.18 billion in 2022.

A big chunk of the ADEX will be allocated for digital (61%), followed by TV (15%), out-of-home (12%), radio (7%), and lastly print (5%).

How big is the digital ad spend in Malaysia?

If we refer to this digital advertising report, the total digital ad spend in Malaysia is estimated to be RM3.48 billion in 2022.

Interestingly, more than half of the digital ADEX will be invested in banner advertising (52%), followed by search advertising (25%), video advertising (14%), and classifieds (9%).

While the report doesn’t specify clearly the scope of banner advertising, the number only makes sense if it’s driven by social media ads as in Facebook and Instagram.

Meanwhile, search advertising is obviously on Google here, and video advertising can be on YouTube or other social media platforms.

Which type of digital ad is growing fast?

By referring to the year-over-year chart above, video advertising has the highest growth rate – the only segment with a double-digit YoY growth rate throughout the years.

In fact, the growth rate of all digital media was stabilizing after 2018 but the chart spikes again from 2020 to 2021 due to the pandemic – when digital was the only feasible option.

Which industries are the big digital advertisers in Malaysia?

If you are a media owner or digital agency, you would probably wonder which industries invest the most in digital ad spend in Malaysia.

Here’s the digital ad spend share by industry in 2021:

1. Services & Other (38%)
2. Retail (18%)
3. FMCG (12%)
4. Automotive (10%)
5. Financial Services (6%)
6. Electronics & Computers (5%)
7. Travel (4%)
8. Telecommunications (4%)
9. Pharma & Healthcare (2%)
10. Entertainment & Media (1%)

Interested to know more? Read the digital advertising report by Statista here.