Transformation challenge for magazines advertising expenditure (ADEX) revenue in Malaysia

Abstract

The Advertising Expenditures or (ADEX) revenue is a major contributor for the survival of magazine publishing. In the recent report by the Magazine Publisher Association (MPA 2014) shows a total of RM207.8 million ADEX was successfully secured by the local publishing company. From the total amount, RM120.9 million was dominated by English-language magazine publishers, while only RM60.1 million was achieved by Malay-language magazine publishers. This paper will discuss on factors, as well as potential and challenges in this magazine publishing industry. The main question is, how the local magazine publisher now is ready to face the changes in the industry which is seen to be challenging. The secondary analysis method has been applied to the data from the latest ADEX report which is provided by Magazine Publisher Association (MPA 2014) from 2010 to 2014 (July). The findings of this analysis indicate ADEX earning in the English-language magazines is more than the Malay-language magazines. However, ADEX for the English-language magazines has declined over the past four years, as well as the number of magazines published are less than the Malay-language magazines which are considered to be more stable even though their revenue is less. Competition with other media channels, readers’ purchasing power and preference are seen as factors contributing to this trend. Thus, it can be concluded that the Malay-language magazines are still competitive and have more stable prospects as compared to the English-language magazines, despite their low ADEX turnover.