Maximizing the impact of your Out-of-Home (OOH) advertising campaign requires a strategic approach, starting with an understanding of your target audience and selecting states with the highest potential for effectiveness. At Big Board Sdn. Bhd., we provide insights into the estimated monthly costs for billboard rentals across various Malaysian states in 2024, helping businesses make informed decisions for their advertising strategies.
States with the Highest Monthly Rental Costs
Based on our analysis, Putrajaya tops the list for the most expensive monthly rentals for OOH advertising, with an average cost of RM 30,800 per month. The limited availability of billboard spaces in this administrative capital drives up prices significantly. Following Putrajaya, Kuala Lumpur ranks second with an average monthly rental cost of RM 16,940, while Selangor comes in third at RM 13,090 per month. These areas are known for their high-density populations and prime advertising locations, which justify the premium costs.
The high rental costs in Putrajaya are due to several factors. The city’s planned layout offers a limited number of designated OOH spaces, creating competition among brands aiming to target government officials, corporate executives, and affluent residents. In Kuala Lumpur and Selangor, prime locations along major roads and landmarks command higher prices, attracting advertisers targeting high-income demographics.
Unexpected Discoveries
Interestingly, Johor does not appear in the top five highest rental costs for OOH advertising in Malaysia, with an average cost of RM 7,700 per month. This may be due to different market dynamics influencing rental pricing in the region. Our specialists suggest that the cost differences across various media types, such as free-standing billboards, are lower in Johor compared to the Klang Valley. However, unipoles in Johor can have higher rental costs depending on the season.
Another factor could be the audience’s average income. According to reports, Johor ranks 9th in average household income despite recent economic growth. This could influence brands to prefer advertising in capital cities like Kuala Lumpur or more densely populated areas such as Selangor and Penang.
Most Affordable States for OOH Advertising
Perlis and Terengganu stand out as the most affordable states for OOH advertising, with average monthly rentals of RM 2,310 and RM 3,080, respectively. The lower costs in these states can be attributed to their out-of-city environments and the predominance of traditional static billboards over digital displays, which generally cost less.
Media Selection and Its Impact on Costs
It’s important to note that the type and number of media can significantly affect rental costs. In areas like Kuala Lumpur and Selangor, the presence of various media options, including premium choices like Giant Gantry, can drive up average monthly fees. While cost is a crucial factor, the effectiveness of an OOH campaign also depends on strategic media selection and placement.
At Big Board Sdn. Bhd., we aim to provide valuable insights into the complexities of OOH advertising campaigns. By understanding the nuances of rental costs and media selection, businesses can optimize their advertising strategies for maximum impact.
Detailed Analysis of Billboard Costs by State
To give you a comprehensive understanding of the OOH advertising landscape in Malaysia, we have compiled detailed information on billboard costs across various states. Below is a table summarizing the average monthly rental costs for billboards in different states.
| State | Average Monthly Rental Cost (RM) | Key Factors for Cost Variance |
|---|---|---|
| Putrajaya | 30,800 | Limited spaces, high competition, affluent audience |
| Kuala Lumpur | 16,940 | Prime locations, high visibility, high-income audience |
| Selangor | 13,090 | High-density areas, strategic placement |
| Johor | 7,700 | Market dynamics, media type variation |
| Penang | 6,930 | Strategic locations, tourist spots |
| Perak | 5,390 | Moderate density, regional businesses |
| Negeri Sembilan | 4,620 | Local market focus, less competition |
| Kedah | 3,850 | Rural focus, less demand |
| Pahang | 3,465 | Tourist areas, limited spaces |
| Terengganu | 3,080 | Traditional billboards, lower demand |
| Perlis | 2,310 | Out-of-city environment, low demand |