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WITH the 15th General Election (GE15) around the corner, the advertising industry like other industries will also be feeling some “heat” from the election and post-election.
StarBiz recently met up with ad veterans and industry leaders to get their views on how GE15 will affect the industry.
M&C Saatchi Malaysia CEO and founding partner Datin Seri Sharifah Menyalara, dentsu Malaysia group CEO Tan Kien Eng and Entropia founder and senior partner Prashant Kumar also shared other relevant views on the industry moving into 2023.
Tan: The election would contribute to an increase in ad spend.StarBiz: With GE15 around the corner, how would it impact the local ad industry i.e. during and after the general election?Sharifah: During GE15, there will certainly be a short-term bonanza for media houses.
For example, in the last election in May 2018, political parties and government organisations spent RM671mil on ads in traditional media alone – about 13% of that year’s market value.
As for post-election, that entirely depends on the policies of the new government and whether they recognise the undoubted value of the creative and communications industry as a huge potential driver of revenue, jobs and investment in Malaysia’s future.,
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Tan: The election would contribute to an increase in ad spend as parties race to influence and garner voters.
Digital social platforms and news platforms would benefit the most as the population would look out for the latest news on GE15 across digital platforms.
This is partly attributed to the new segment of younger voters. Regardless of the outcome, advertisers would continue to spend for the year-end festivities and the start of the new year events.
If GE15 results in a majority lead government meaning a more stable government, there could be a more positive economic outlook, investment, and ad spending.
Prashant: The industry needs a stable and consistent government with a clear economic vision to create a strong investment climate. This is to ensure businesses would want to invest in brand building, new products and to scale up the ladder.
Investments entail risks and an uncertain political climate multiplies the risks significantly.How would the industry pan out in the event a majority government is formed? Would this be different if post-election, either a minority government or a hung Parliament comes into effect?
Tan: It is critical for the country to achieve a majority government to ensure smoother implementation of the economic recovery plan to boost investor confidence and fuel the economy as compared to a fragmented government which would result in further instability.,
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