KUALA LUMPUR (Jan 27): RHB Research Institute maintains its view of a slowdown in gross advertising expenditure (adex) growth and its underweight stance on the media sector remains unchanged.
It said on Friday that December’s gross adex for TV and print media was relatively stable with 2.9% on-year growth (November was the weakest in 2011, growing 2.2% on-year). However, on a month-on-month basis, adex jumped 16% mainly due to festivities and seasonality.
“Going forward, we reiterate our view of a slowdown in adex growth. As our macro view is cautious, we are likewise conservative on industry growth by using a 1.0 times GDP multiplier to our 3.6% 2012 GDP growth forecast. Therefore, we forecast only 3.6% adex growth in 2012,” it said.
It said on Friday that December’s gross adex for TV and print media was relatively stable with 2.9% on-year growth (November was the weakest in 2011, growing 2.2% on-year). However, on a month-on-month basis, adex jumped 16% mainly due to festivities and seasonality.
“Going forward, we reiterate our view of a slowdown in adex growth. As our macro view is cautious, we are likewise conservative on industry growth by using a 1.0 times GDP multiplier to our 3.6% 2012 GDP growth forecast. Therefore, we forecast only 3.6% adex growth in 2012,” it said.
