Malaysia’s advertising industry has crossed a critical threshold.

Digital is no longer an emerging channel or an optional add-on and it has become the dominant foundation of advertising strategy.

As digital platforms continue to absorb the largest share of advertising expenditure, the industry must now confront a deeper question: how should advertising evolve when technological capability advances faster than ethical reflection?

Today, digital advertising accounts for more than three-quarters of Malaysia’s total advertising spend, driven primarily by social media, search, and online video.

This shift mirrors how Malaysians consume content on mobile devices, across platforms, and in personalised digital environments.

Traditional media remains relevant, but it no longer defines the core of advertising strategy.

Digital dominance, however, is not merely structural. It reshapes how brands engage audiences in spaces where participation, authenticity, and relevance are expected.

Advertising now functions not only as a commercial tool, but as a form of public communication with cultural and social consequences.

Creativity, technology, and public scrutiny

A recent Malaysian example that highlights this tension is the AI-generated K-pop–inspired boyband campaign by RevMedia for KFC Malaysia.

The campaign drew both strong support and notable backlash.

Supporters praised its bold experimentation with generative AI and youth culture, seeing it as evidence that Malaysian agencies are willing to push creative boundaries.

However, critics questioned its authenticity and transparency, particularly the use of AI-generated personas to simulate celebrity culture for younger audiences.

The debate revealed growing public sensitivity toward how AI is applied in advertising not opposition to innovation, but concern over intent and impact.

Lessons from western markets

Malaysia’s experience mirrors developments in Western markets.

In Europe, McDonald's faced backlash after releasing an AI-generated festive advertisement that audiences described as emotionally hollow and unsettling, leading to its withdrawal.

Interestingly, this occurred despite McDonald’s successful global use of AI behind the scenes improving operational efficiency, predictive maintenance, order accuracy, and customer experience across thousands of outlets.

This contrast is instructive. While AI has proven effective in enhancing workflows and efficiency, its application in creative communication demands greater care. Audiences respond not just to innovation, but to emotional authenticity and human connection.

Advertising beyond metrics

The rise of AI, data analytics, and programmatic advertising has enhanced precision and speed.

Yet when success is measured solely through impressions, clicks, or virality, advertising risks losing sight of its broader influence.

In a multicultural society like Malaysia, cultural sensitivity and ethical awareness remain essential, as advertising messages circulate across communities with diverse beliefs, values, languages, and social norms.

A campaign that resonates positively with one segment may be misunderstood or even cause offence to another if cultural contexts are overlooked.

Younger audiences, particularly Gen Z, are highly media-literate and sceptical of surface-level messaging. They expect brands to demonstrate genuine values rather than merely adopt trends.

Advertising, therefore, cannot rely on novelty alone it must be grounded in responsibility.

The call for thoughtful progress

Malaysia’s advertising industry has crossed the digital point of no return.

The challenge ahead is not whether the industry can innovate, but whether it can do so responsibly.

By learning from both local and international experiences, and by balancing creative ambition with ethical judgment, advertising in Malaysia can continue to thrive while contributing positively to the nation’s media and cultural landscape.

In a media environment shaped by public scrutiny and cultural diversity, advertising that succeeds will be advertising that understands its influence beyond commerce.

By placing ethics, cultural sensitivity, and human authenticity at the heart of digital innovation, Malaysia’s advertising industry can move forward with confidence, strengthening not only brands but also public trust and the nation’s shared cultural fabric.

-- BERNAMA

Dr Fahizah Shamsuddin is a member of the Malaysian Association of Communication Educators (MACE) and a Senior Lecturer at the School of Communication and Media, Sunway University, Petaling Jaya, Selangor.