DIGITAL MEDIA ACROSS ASIA

Malaysia - Internet Implication

	In this section: *The digital ad spending paradox* - Internet ad spending vs internet penetration - Local and global websites consumption - Inaccuracy of data - Role of blogs Broadband speed - Nationwide rant: low broadband speed - Broadband Quality Study 2009 - Speeding up broadband

In this section:

The digital ad spending paradox
- Internet ad spending vs internet penetration
- Local and global websites consumption
- Inaccuracy of data
- Role of blogs

Broadband speed
- Nationwide rant: low broadband speed
- Broadband Quality Study 2009
- Speeding up broadband

The Digital Ad Spending Paradox
Internet ad spending vs internet penetration
Ad Spending in Malaysia, 2009 Figures from Nielsens Malaysia Adex	According to Nielsen's Malaysia Advertising Expenditure Report 2009, digital media component only amounted to 0.6% of the total advertising market in Malaysia. This is surprising, considering that the internet penetration rate in Malaysia was as high as 62.8% in 2008. An international comparison shows that Australia, with a similar penetration rate, has 10 times more spending in internet advertising. How could two countries with such a similar penetration rates contrast that much in their internet ad spending? The difference lies in the consumption pattern of the buyer's persona: the Malaysian internet users. They spend more time on global-based websites as opposed to domestic sites.
Local and global websites consumption
	Internet ad spending: Japan: 15% Australia: 13% Malaysia: 0.6% There are only 3 local sites in the top 15 most visited websites in Malaysia. If we eliminate the default Google site and the local bank websites, there is only a single local site left. With the Malaysians flocking to global-based websites than Malaysian-based ones, it is of little surprise that advertisers prefer to spend their money on international websites. Advertisers in Japan and Australia have much more choices to spend their advertising money online locally.
Inaccuracy of data
	Nielsens measured Malaysian internet advertising spend by calculating the advertising revenue of local websites. The figure did not account for the advertising money spent on globally-based websites. Thus, we may conclude that the 0.6% figure is inaccurate. Although the advertising opportunity is minimum in local websites, there is potential in the Malaysian blogosphere.
Role of blogs
	From the pie charts on the left: 63.5% of Malaysian internet users are aware of blogs. Among those who are aware of blogs, 43.9% access blogs. Malaysian netizens trust local traditional media much less as compared to netizens in Europe and Australia. In Malaysia, blogs have become an underground source for information such as juicy political and entertainment gossips. These blogs, with its vast amount of readership and influential thought leaders, offer a golden opportunity for advertisers.
	For more information about the digital ad spending paradox, click here

Broadband Speed
Nationwide rant: low broadband speed
	Picture on the left: from back in 2006, RedesignMalaysia.com, a site dedicated for statistical data and nationwide rant about broadband speed. The figures in the illustration are taken from 2005 statistical data. Executive Working Together (TEC) Asia and the Malaysian Institute of Economic Research (MIER) conducted a study in 2007. The study involved over 170 CEOs in Malaysia. Results of the study showed that CEOs in the country were generally unhappy about the local broadband service: 70% thought that the broadband internet access was slow, and service providers did not deliver the promised access speed. 64% thought that local service providers were inefficient. 56% thought that the broadband coverage was inadequate. 38% thought the service was too costly In 2007, industry observers indicated the monopoly by Telekom Malaysia (TM) Net, the single broadband service providers, as one of the reason of the slow broadband speed. For a more recent take on the issue, we examine the Broadband Quality Study 2009.
Broadband Quality Study 2009
Asian Countries and Broadband Leadership, Quality, and Penetration 2009 Malaysia is one of the countries with the slowest download speed:	Malaysia is placed in between the leap-frog group and the catch-up group in the following matrix: Malaysia's broadband quality score is 'Below Today's Applications Threshold' Figures retrieved from GreyReview
Speeding up broadband
Malaysia High Speed Broadband Rollout Retrieved from Telekom Malaysia	Government attempts to solve the problem by aspiring for a 50% broadband penetration in Malaysia by the end of 2010. However, this appears to be a great challenge as current broadband penetration stands 21%. In the late 2009, a HSBB (High Speed Broadband) project was carried out. The government and TM has invested RM11.3bil for the project that is set to span for 10 years. HSBB will benefit businesses, educational institutions, and the general population. The current broadband speed is less than 4 Mbps. In a practical sense, this translate to an entire night to download a movie. The broadband speed after HSBB will increase from 10Mbps to 100 Mbps. With100 Mbps, the difference is that it will take 15 minutes to download a movie. Broadband in Malaysia is costly. In Singapore, a 100Mbps broadband service would cost just S$89. In Malaysia, for RM88 you will only get access to 1Mbps. Thus, Malaysians can only hope that HSBB will be available to consumers at an affordable rate.
	For more information about Malaysia's broadband speed issue, click here

clarestalwj	Latest page update: made by clarestalwj , Mar 22 2010, 3:43 AM EDT (about this update About This Update Edited by clarestalwj 67 words added 35 words deleted view changes - complete history)
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