Backchannelmedia

Business Times; Kuala Lumpur

By CHONG JIN HUN

ADVERTISING expenditure in Malaysia posted a slower year-on-year growth of 3 per cent to RM4.6 billion in 2005, due to less local and international events, according to market research firm Nielsen Media Research.

In 2004, advertising expenditure in the country leapt 17 per cent to RM4.4 billion.

"The softer growth was somewhat expected given that 2005 lacked local and international events," executive director of Nielsen Media Research for Malaysia and Singapore Rebecca Tan said in statement yesterday.

Newspapers, which grew their advertising revenue by 4 per cent to RM2.8 billion in 2005, held the largest share of 61 per cent of the pie last year.

Despite a dip in advertisement volume, higher newspaper advertising rates had led to the 4 per cent growth.

Television advertising expenditure which came in second rose 0.7 per cent to RM1.3 billion from a year ago. This represents a 28 per cent share of local advertising expenditure.

The telecommunication industry, having chalked up its mobile- line services advertising bills by 15 per cent to RM270.1 million, stole the limelight as the top spending sector for the year.

Leading the pack was Celcom Bhd which spent RM123.3 million, a 38 per cent jump from a year ago.

Maxis Communications Bhd, whose expenditure declined 32 per cent to RM98.2 million came in second followed by DiGi.Com Bhd with a 0.6 per cent growth to RM81 million.

As such, the telecommunication entities were the top three spenders last year.

The top-spending company spot, however, went to consumer goods maker Procter & Gamble which increased its advertising expenditure by 25 per cent to RM128.6 million.

Category wise, classifieds was number one with RM599.5 million and mobile-line services was second with RM270.1 million.

Tan said prospects for 2006 remain positive, helped by telecommunication and fast-moving consumer goods companies' large advertising budget, besides a better economic outlook.