Kenanga Research: Adex spending to continue growing

KUALA LUMPUR, Nov 21 ― The total adex spending will continue to grow in the remaining two months of this year as advertisers rushing to finish their yearly budget, says Kenanga Research.

The research house also maintains its “neutral” view on the sector.

The year-to-date October gross adex grew by +3.7 per cent year-on-year to RM9.0 billion, it said, citing the Nielsen report, a provider of information and insights into what consumers watch and buy.

In a research note today, Kenanga said the higher year-to-date growth was mainly driven by the Pay TV (+15.3 per cent) and Free-to-air TV (+1.8 per cent) segments, but was partially offset by the lower contribution from the newspaper (-1.1 per cent) segment.

The newspaper year-to-date gross adex was lowered by 1.8 per cent year-on-year to RM3.1 billion.

The relatively weak performance was mainly caused by the contraction in both the English (-6.9 per cent year-on-year) and Chinese (-0.2 per cent year-on-year) segments, but partially offset by higher contributions from the Malay (+2.9 per cent year-on-year) segment.

Kenanga said the year-to-date Pay TV gross adex continued to gain 15.3 per cent year-on-year to RM2.2 billion at the expense of free-to-air TV, which improved a mere 1.8 per cent year-on-year.

“On a month-on-month basis, both Pay and free-to-air TV adex climbed by 14.9 per cent and 11.1 per cent, respectively,” it added. ― Bernama



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