Market Trends of Malaysia OOH And DOOH Industry
Billboards to Drive the Market
- As Malaysia continues to urbanize, there are increasing opportunities for billboard placements in rapidly developing urban centers. New infrastructure projects, including highways, commercial zones, and residential developments, provide prime locations for billboards.
- Malaysia’s status as a popular tourist destination offers opportunities for advertisers to target international visitors. Billboards in airports, tourist attractions, and major city centers can effectively reach this audience. According to Tourism Malaysia, Malaysia aims to welcome 27.3 million international tourists, targeting a tourism revenue target of USD 21.9 Billion (MYR 102.7 billion) in 2024. To achieve this, Malaysia is leveraging B2B sessions, seminars, and networking events, with a strategic focus on niche segments like edu-tourism, shopping, and halal food. These efforts are part of Malaysia's broader strategy to position itself as a top choice for family-friendly vacations.
- Malaysia is known for its tourism, thus many advertisers can create custom campaigns targeting tourist segments such as luxury travelers, adventure seekers, or family vacationers. Ads can be targeted to highlight local attractions, events, and services. This localized approach can increase the relevance and impact of advertisements. Moreover, data from Tourism Malaysia recorded 20.14 million visitors in 2023, which was double that of 10.07 million the year before.
- Many market players operating in the country are making advances in digital technology to enable more dynamic and interactive content on digital billboards. This can include real-time updates, interactive elements, and integration with mobile and social media platforms. For instance, in January 2023, myTukar, a player in the Malaysian used car ecosystem, in partnership with Carro, unveiled its inaugural 3D OOH billboard in Kuala Lumpur's busy districts, at KLCC Junction. This innovative 3D OOH initiative was further reinforced by a strategic rollout across TV, digital, social media, and radio platforms. This enabled the company to create memorable visual experiences for customers and passersby alike and eventually helped in increasing company's revenue.
- Advertisers and billboard operators are increasingly adopting sustainable practices, such as using energy-efficient LED lighting, recyclable materials, and solar-powered billboards. This aligns with global sustainability trends and appeals to environmentally conscious consumers.
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Digital OOH to Witness Major Growth
- Digital out-of-home (DOOH) advertising in Malaysia is growing, propelled by technological advancements, urbanization, and evolving consumer behaviors. DOOH empowers advertisers with real-time updates and dynamic content shifts, facilitating the delivery of pertinent messages tailored to current events, weather, or audience demographics.
- For instance, in April 2023, KLIATV, Doohlabs, and Scotwell initiated collaborative efforts to enhance data-driven digital screen media in Malaysian airports. Seeking Scotwell's proficiency in advanced digital solutions, KLIATV also forged a partnership with Doohlabs, integrating their automated data-driven advertising platform. This collaboration empowers KLIATV to leverage passenger data, tailoring advertising and promotions for airport audiences.
- The demand for more innovative media in advertising is increasing among advertisers and brand owners around the country, thus positively impacting the growth of the OOH market. Furthermore, in today's competitive market, the increasing focus of organizations in the country drives the demand for OOH solutions to create impactful OOH campaigns to increase their visibility and drive business growth.
- Demand for advertising in the country is primarily fueled by the numerous advantages of DOOH campaigns. These campaigns facilitate high recall rates and cost-effectiveness, setting them apart from traditional advertising methods. Moreover, the innovative strategies by DOOH market vendors have led to enhanced personalization, precise targeting, and improved measurement metrics. As per data by the Malaysia Advertisers Association and GroupM, the forecasted total value of advertising expenditure is expected to reach USD 1.59 billion (MYR 7.49 billion) in 2024.
- Moreover, the expansion of the DOOH network into more urban and suburban areas, as well as new infrastructure projects, is expected to provide additional opportunities for advertisers. Continuous innovation in content creation, including the use of AI and machine learning for personalized ads, is also anticipated to drive growth and engagement in the DOOH sector.
