Starcom bets on Navia in Malaysia

The surging out-of-home (OOH) billings in Malaysia have forced Starcom MediaVest Group (SMG) to start its own OOH specialist in the region. Accordingly, the group has introduced Navia Malaysia, an out-of-home specialist. Navia has been successfully offering specialist OOH solutions in India and the Philippines for more than three years. It launched its Indonesian operations earlier this year.

Navia Malaysia, a division of Starcom MediaVest Group, will offer services such as media planning, site survey, negotiations, creative development and production, site monitoring and maintenance as well as campaign evaluation in all key cities across Malaysia.

Malaysia’s total AdEx for 2007 is projected at RM5 billion (around Rs 58 billion) and SMG estimates the contribution of OOH advertising at 5 per cent or RM250 million (around Rs 30 crore). The key category spenders of OOH are telecommunications, banks, automotive companies, mobile phones providers and FMCG. This medium has recorded a year-on-year growth rate of 6 per cent in the last two years.

For SMG in Malaysia, OOH advertising is growing in importance. Yap says, “Our year-on-year billings have increased by 180 per cent over the last couple of years, which is a phenomenal growth rate, especially when compared to the segmental growth. Because of this high growth, it is crucial we set up a unit to give specialised out-of-home solutions to our clients.”

The introduction of Navia Malaysia is also driven by SMG’s belief in putting consumers at the centre of all that it does. Yap adds, “Effective communication planning begins with careful articulation of the brand objective. For out-of-home advertising to be effective, there must be a fusion of the capabilities of the medium with the brand message in a way that entertains, informs and excites the consumer, and helps the brand achieve its defined goals.”

SMG claims that Navia Malaysia has recorded billings of RM43 million (around Rs crore), capturing a market share of 17 per cent.

Philip Hew is the general manager and leads Navia Malaysia. He is an expert in the OOH space, with more than 10 years of experience. He brings to Navia Malaysia strong local insights and established OOH partner relationships.

Hew says, “Our experience and unique proposition hold us in good stead as we bring a new level of professionalism into the OOH industry in Malaysia, and raise the OOH service bar for our clients. Using our three-pronged approach of strategy, technology and creativity, we are confident of delivering greater accountability and captivating connections to both clients and consumers. And we believe that the Malaysian market is ready for Navia.”