Consumer boycotts have become a powerful tool in today’s society, with major advertisers feeling the impact on their revenue. The reduction in advertising expenditure (adex) by these advertisers has had a ripple effect on media companies, particularly in Malaysia. TA Research has reported that several brands have faced customer boycotts for their perceived support of Israel, leading them to withdraw or scale back their advertising campaigns.
As a result, many big brands are redirecting their resources towards crisis management and public relations efforts to protect their brand reputation. This shift in adex has had significant financial repercussions for Media Prima, Malaysia’s largest integrated media company. According to the New Straits Times, Media Prima’s revenue has dropped by 4.7% on a quarter-on-quarter basis and only grown by 1.1% year-on-year across multiple media segments, including television, digital, and print.
TA Research believes that Media Prima’s true value lies in OMNiA, its omnichannel solution provider. OMNiA delivers tailored solutions through its professionalism, experience, comprehensive advertising ecosystem, and valuable data. With a three-year business plan in place, OMNiA is well-positioned to attract more clients through enhanced content and boost sales revenue. This includes leveraging upgrades on digital billboards, focusing on content boost, inventory premiumisation, and exploring new revenue streams.
Despite the financial impact on media companies, the boycotts in Malaysia have also affected content creators and celebrities. Celebrity influencer Vivy Yusof highlighted the hesitancy among influencers and content creators to work with international brand projects due to the Gaza-Israel conflict and Malaysia’s vocal support for Palestinians. The situation has put KOLs in a difficult position as working with brands is their main source of income.
In addition to content creators, Malaysian celebrities have also faced backlash for remaining silent about the war in Gaza. This has led to some celebrities being blocked by the public, affecting their potential reach and effectiveness in influencer marketing campaigns. Lee Chin Chuan, Country Manager at AnyMind Group, emphasized the importance of considering the implications of blocking celebrities on brand marketing strategies, as it can have long-term consequences for their brand.
Overall, the impact of consumer boycotts on major advertisers and media companies is a complex issue that requires careful navigation. As brands and media companies adapt to changing consumer sentiments, it is crucial for them to prioritize crisis management, public relations efforts, and strategic partnerships to maintain their brand reputation and revenue streams.