The Malaysian advertising market has recorded a total spending of RM2.9 billion (£501m, $823m, €578m) in the first half of 2009 – a decline of one per cent year-on-year.

Major multinational FMCG (fast moving consumer goods) advertisers – such as Unilever, GlaxoSmithKline and Nestlé – were the biggest spenders, Nielsen Media Research reports.

Terrestrial TV ad revenues  – which command 35 per cent of the total adspend – rose by six per cent, to RM1.0 billion, on the same period last year, with radio up by ten per cent, to RM148m, outdoor by 16 per cent, to RM55m, and point-of-sale by seven per cent, to RM41m. Online also registered a rise of 12 per cent, to RM16m – although those figures were based on estimates drawn from a limited number of websites.

However the rises were offset by declines in newspapers, which take a 54 per cent share of Malaysian marketing budgets and which were down five per cent to RM1.6bn. Magazines dropped 11 per cent (RM64m) and cinema ten per cent (RM10m).

Unilever’s adspend was seven per cent up on last year, to RM74m, with Procter & Gamble remaining consistent with last year at RM57m. Telco Celcom was in third place with RM50m (down 47 per cent on last year) but Nestlé spent 20 per cent more; totalling RM45m. GlaxoSmithkline boosted its expenditure by 71 per cent, to RM39m, while KFC spent RM32m, a more modest rise of eight per cent on last year’s same period.

Wong Mae Suen, associate director, Media Group, The Nielsen Company, said: “Although Malaysia’s advertising market saw a slight decline in the first half of this year, second quarter spending remains on par with the same period last year. Increased spending in government awareness campaigns on dengue and H1N1 influenza, social messages and national service campaigns, and continued spending on local events like the Malaysia Grand Prix and new product and service launches have helped in maintaining advertising spending in the second quarter.”

She added: “This is indeed a challenging time for all sectors, the advertising market notwithstanding. However, the recent economic reforms and liberalisation of the financial sector is expected to soften the economic slowdown.”