Working hand in hand for the industry
Advertising players laud new government measures to spur creativity
THE Pakatan Harapan government has got the advertising fraternity rousing with its recent measures, some of which are embodied in its manifesto.
Industry players are in hands with the coalition saying that some of the measures will spur creativity and boost the usage of technology and innovation in the advertising and media industry.
Dentsu Aegis Network Malaysia CEO Nicky Lim says it is crucial that the government and private sectors work hand in hand for the advancement of the ad industry.
In the past, he says dialogues with leaders and practitioners of the industry have been few and far between and it will be encouraging to see more conversation and engagement between the Communications and Multimedia Ministry and leaders of the ad fraternity.
“Dentsu Aegis is happy to be part of national transformation discussions. I think it’s important that the powers that be are more plugged in on real affairs and challenges in the industry. Furthermore, the regular sessions can serve as an avenue for us to address critical industry issues and devise practical solutions that are viable and reasonable for all parties.
“For instance, one of the debatable issues recently is the withholding tax imposed on advertisers, and media agencies correspondingly, for digital advertising on platforms owned by foreign digital firms such as Google and Facebook.
“We’ve seen many sides of arguments on this, but I think what’s really needed at this juncture is more communication with the authorities to address the practicality and challenges in implementing this tax treatment, with the ministry or Malaysian Communications and Multimedia Commission (MCMC) acting as a conduit to facilitate discussion on such matters. Fundamentally, we ought to strike a balance in applying the withholding tax, so as not to hinder the development of Malaysia’s digital economy,” he adds.
Dentsu Aegis Network, Lim says, has a vision of becoming a 100% digital economy business by 2020, adding that the agency is fully supportive of accelerating Malaysia’s presence in the digital sphere. This involves putting together a cohesive plan with the MCMC that will be in line with the commission’s responsibility of promoting the development of the communications industry where digital services are prevalent, he says.
Lim says: “That said, other areas we hope to see an improvement would be the provision of faster Internet speed and more access to data, and cheaper for that matter, for consumers – this would aid the development of the ad industry as well, with digital being a key strategy and execution in most ad campaigns nowadays.”
Besides technology, he notes another area to look into is talent. The ad industry has been grappling with the issue of brain drain for many years. While many of the talents have cited better prospects for migrating overseas, he says many have also cited frustration with the government as a contributing factor.
“It is our hope that the new government will work with the ad industry to stop the brain drain as well as welcome talents back, especially creative and digital talents,” he adds.
Lending his support for the Communications and Multimedia Minister Gobind Singh Deo, IPG Mediabrands Malaysia CEO Bala Pomaleh says
One of the first things that the minister spoke about was ensuring the freedom of press, including allowing criticism of the government, and repeal of the Anti-Fake News Act.
Other measures to spearhead the industry
“The positive moves will elevate, rather than curb the creative content we see within advertising, such as leveraging on satirical political content within creatives to connect with audiences.
“The resulting outcome will be that we also see a shift in viewership towards mainstream media, with brands being able to find a different audience across these platforms,” he adds.
The Pakatan manifesto, among others, supports a creative young generation that is free from oppression, and looks to empower youths by setting up a Young Entrepreneurs’ Empowerment Fund, says Bala.
The fund will develop, among other things, the creative arts and industry, e-sports including video game production and other areas of technology and commercialisation of social media platforms, including vloggers, social media influencers, and social media content developers. This holds great opportunities for the younger generation and their role in expanding the advertising and media space,” he says.
On the broadcast front, Bala notes it could potentially see wider opportunities for Malaysian films to be broadcast locally and globally without censorship.
“The hope for filmmakers and consumers is that we would not have to wait 12 years for a film like Dukun to be screened, with liberties and creative licence encouraged when creating content,” he says.
The promise by Gobind Deo to double the speed of broadband at half the price, he says has huge implications for the advertising industry, especially mobile advertising.
Bala adds: “This will present greater opportunities for the use of technology and new innovation within the media which will spur on the industry. Concurrently, there will certainly be more connections to rural areas which will open up a broader spectrum of consumers for those brands that want to reach the rural segments.”
The Pakatan manifesto, he says, also talks about reviving the new economy, shared economy and research sector, and enhancing the protection of intellectual property so as to promote more corporations venturing into innovative industries.
Through this there will definitely see a revival of media and a chance for production houses to participate competitively, he explains. “We have already seen movements towards a digital economy and e-commerce initiatives, so this ministry will likely continue that momentum to augment activities and technologies involved in the creation, delivery and enhancement of digital content,” he says.
Considering the growth of small-and-medium enterprises (SMEs) in Malaysia, Bala says there are significant advertising potential for these companies. It will bode well should tax provisions or other incentives be made for this sector as it would encourage SMEs to spend and expand their business further, he says, adding that it will in turn spur domestic and international growth, especially if paired with e-commerce opportunities.
To support the economic revival, he says there are several laws relating to the MCMC that Gobind Deo will be reviewing.
“We hope to see more involvement in moderating industry measurements, such as audience measurements, brand safety and viewability, as well as data protection standards closer to general data protection regulation, which will help build trust between brands and consumers globally.
“Alongside this, a review of the various advertising codes and guidelines needs to be effected, so as to come up with something more holistic and encompassing, considering the current challenges in navigating through media choices and content creation opportunities,” Bala notes.
Given that Out-of-home (OOH) media contributes to the nation’s image and branding, he says there should be national guidelines on OOH advertising to encourage more uniformity and reduce rogue sites which are not only an eye sore but also don’t meet safety standards. Ideally, the ministry could form a national OOH body to work with state councils for local implementation of this, he says.