Media companies impacted by brand ad spend cuts due to consumer boycotts

A reduction in advertising expenditure (adex) by major advertisers impacted by consumer boycotts have impacted revenue for media companies. 

TA Research reportedly said that several brands have faced customer boycotts for their "perceived" support of Israel, leading many brands to withdraw or scale back their advertising campaigns. 

According to the New Straits Times, TA Research's note said that many big brands withdraw or scale back their advertising campaigns to avoid further negative exposure and are redirecting their resources towards crisis management as well as public relations efforts to protect their brand reputation. 

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TA Research reportedly said the reduction in adex has significant financial repercussions for Media Prima, Malaysia's largest and leading integrated media company. 

Media Prima's revenue has reportedly dropped by 4.7% on a quarter-on-quarter basis and a mere growth of 1.1% year-on-year based on its latest filing, reported New Straits Times. The trend is reportedly apparent across multiple media segments, including television, digital and print. 

TA Research reportedly added that it believes Media Prima's true value lies in OMNiA, Media Prima's omnichannel solution provider that deliver tailored solutions through its professionalism, experience, comprehensive advertising ecosystem and valuable data. 

Backed by its three-year business plan, OMNIA is also well positioned to attract more clients through enhanced content and boost sales revenue, TA Research reportedly said. This may include leveraging the upgrade on their digital billboard and by focusing on content boost, inventory premiumisation and new revenue stream. 

TA Research reportedly said that these initiatives are expected to make Media Prima stay relevant in the industry and improve sales revenue too. 

The boycotts in Malaysia did not only impact media companies' revenues. Content creators and celebrities were also impacted. 

In conversation with A+M in April this year, celebrity influencer and entrepreneur Vivy Yusof said there has been a hesitancy from influencers and content creators in working with international brand projects given the Gaza-Israel and considering that Malaysia is so vocal and passionate about standing up for Palestinians.

"Any KOL that is seen to be supporting any brand linked to the genocide even by an inch, will be dragged through the mud online," said Vivy. 

Vivy added that the situation is also difficult for KOLs as working with brands is their source of income.

Similarly, Malaysian celebrities were blocked for remaining silent about the war in Gaza. The Malaysian block list includes stars such as actresses Michelle Yeoh and Neelofa as well as comedian Sheila Rusly, influencer Ruhainies and actress and singer Janna Nick.

From a marketing standpoint, blocking celebriteis is "huge", according to Lee Chin Chuan, Country Manager, Malaysia at AnyMind Group.

Blocking affects the potential reach and effectiveness of creator content, which in turn shapes the success of influencer marketing campaigns, adding that "Marketers who do not pay heed to this stand to lose out not just in the short term but may also incur long-term implications for their brand." 

Photo courtesy of Media Prima/Website

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