Malaysia’s digital adex rebounds in 1H 2025, fueled by social and travel sectors

Malaysia’s digital advertising market is showing strong signs of recovery in the first half of 2025, with social media and travel sectors driving the rebound, according to the latest "Digital ADEX Report" released by the Media Specialists Association (MSA), in collaboration with the Malaysian Advertisers Association (MAA) and the Malaysian Digital Association (MDA).

Covering January to June 2025, the reports draw on data from 21 participating media agencies, representing approximately 60% of Malaysia’s total digital ad spend. The data shows a 6.4% increase in Q1 and a substantial 22% surge in Q2 compared to the same period in 2024, bringing total reported digital adex to RM343 million and RM661 million respectively. Combined, these figures mark one of the strongest first-half performances since the initiative began tracking digital spend in 2017.

The upward trend points to renewed advertiser confidence and steady growth in consumer activity across digital platforms, following a period of cautious spending in 2024.

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Jessica Lim, pillar lead for research and measurement at MAA, said: “After a cautious 2024, we’re seeing a genuine resurgence in digital advertising confidence. Brands are re-energising campaigns, experimenting with creative formats, and doubling down on measurable results. This rebound signals not just recovery, but renewed belief in the strength of Malaysia’s digital economy.”

Social media continues to dominate the digital ad landscape, rising from 41% to 44% in Q1 year-on-year and from 44% to nearly 50% in Q2. Video remains the second-largest format, holding 24% in Q1 and 22.3% in Q2, while display fluctuated between 12–15%. “Social remains the heartbeat of digital engagement in Malaysia,” Lim said. “Brands are tapping into short-form video, creator partnerships, and conversational content, meeting audiences where they are and driving both engagement and social commerce.”

Sector-wise, tech and electronics retained its lead as the largest digital spending category, increasing slightly from 19% to 20%, followed by personal care and food and beverage. The standout performer was travel and tours, which surged from just 1% in Q1 2024 to nearly 9% in Q1 2025, reflecting renewed momentum in tourism, hospitality, and experience-driven campaigns. Lim explained: “The rise of travel and lifestyle categories tells a clear story, that Malaysians are back exploring, connecting, and spending on experiences, and advertisers are responding with campaigns that tap into optimism and emotional reconnection.”

Claudian Navin Stanislaus, president of MAA, added: “The growth across categories suggests Malaysia’s advertising industry isn’t just reacting to change, it is moving forward with intent. Collaboration between marketers, agencies, and creators is driving meaningful results, proving that people and partnerships are at the core of industry progress.”

Back in October, a report by Kenanga Investment Bank stated that Malaysia’s media industry is at a crossroads, as advertising dollars increasingly flow toward digital-first platforms that offer precision, interactivity, and measurable ROI. Traditional media including television, print, and radio, face growing pressure to adapt to a landscape dominated by social media, KOLs, messaging apps, streaming services, and e-commerce live-stream commerce.

Kenanga said that the shift toward digital advertising is reshaping the sector. Social media, streaming platforms, search engines, and retail media networks now offer advertisers AI-driven programmatic advertising, enabling real-time bidding, precise audience segmentation, and dynamic ad placement. The ability to analyse vast troves of user data allows campaigns to be personalised to individual browsing habits and content consumption patterns, capabilities that legacy media cannot match due to coarser audience metrics, limited interactivity, and slower feedback loops.

Meanwhile, over the next five years, digital is projected to command 80%–85% of total ad spend, expanding at a CAGR of 11%–13%. This is according to a report by Bain & Co titled "Advertising in the digital age, in India and around the world." The advertising sector overall, valued at nearly US$1 trillion globally, continues to outstrip GDP growth, rising from 0.6% of global GDP in 2015 to around 0.85% in 2024.

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