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Unlocking the Next Frontier of Growth in Malaysia
The Malaysian media landscape is undergoing a profound transformation. We are witnessing
a shift from passive consumption to active participation, where entertainment is no longer
just a pastime—it is a powerful driver of discovery and decision-making. For marketers in
the FMCG sector, this evolution presents both a challenge and an extraordinary opportunity:
how to cut through the noise and drive measurable, real-world business impact.
In today’s economic climate, belief is not enough. Marketers require proof. They need rigorous, objective data to justify every ringgit of ad spend.
That is why Analytic Edge partnered with TikTok to conduct this Marketing Mix Modeling (MMM) study across major FMCG brands in Malaysia. We wanted to move beyond vanity metrics and scrutinize the hard numbers behind return on investment (ROI) and scalability.
The findings detailed in this whitepaper are transformative. The data reveals that TikTok is no longer just an “emerging” channel; it is a high-performance efficiency engine. With an average ROI of 1.6—delivering 1.5x the return of total Digital Media and 1.2x that of Social.
Yet, perhaps the most critical insight is the “efficiency gap.” Despite delivering the highest year-on-year ROI growth of 75%, TikTok currently captures only a modest 3.8% of the average media spend. This disparity signals a massive, untapped opportunity. Our analysis shows that brands have a runway to scale their investment by 47% from their current investment levels without hitting diminishing returns, offering the highest growth potential of any channel in the mix.
This whitepaper serves as a blueprint for bridging that gap. It provides the data-backed confidence needed to re-evaluate your media mix, optimize for superior returns, and capture the full potential of an audience that is ready to engage.
The future of brand growth in Malaysia is here. We invite you to explore the findings and join us in unlocking it.
Analytic EdgeThe Malaysian media industry offers exciting opportunities for marketers to build strong brands through targeted, relevant infotainment and to empower consumers to make informed purchases.
TikTok partnered with Analytic Edge to analyse aggregated findings based on Marketing Mix Modelling (MMM) for 5 FMCG brands in Malaysia. The results were reported at an overall aggregate level. The highlights of the findings are below
TikTok ROI vs. Other Channels:
TikTok has the highest ROI among digital
media and the second highest ROI after
Television. With an average ROI of 1.6, TikTok
delivers 1.5x the ROI of total Digital Media
and 1.2x that of Social.
Sufficiency Analysis/ Opportunity to Grow:
Beyond current performance, TikTok also
presents the strongest future growth
potential. The sufficiency analysis shows
that TikTok offers the highest opportunity
for FMCG brands to grow, with a growth
runway of 147% which is significantly higher
than both Television and Social.
Together, these insights indicate that TikTok not only delivers superior ROI today but also represents a compelling opportunity for brands in the Malaysia to unlock even greater returns by increasing their investment in the platform.
1. Unlocking Incremental Growth with Untapped Efficiency Potential
Despite driving the highest efficiency gains—TikTok growing ROI by 75% compared to the
broader Digital average of 16%—TikTok remains significantly under-invested. It currently
captures only 3.8% of the total 34.6% Digital ad spend, signalling a prime opportunity to drive
incremental volume by shifting budget into this high-growth channel.
2. TikTok has the Highest ROI Among
Digital Media
TikTok consistently delivers stronger ROI
compared to major competing channels
for FMCG. With an average ROI of 1.6,
TikTok delivers 1.5x the ROI of total
Digital Media and 1.2x that of Social.
Above chart indicates the ROI of TikTok as a multiplier of other channels e.g. TikTok’s ROI is 1.2 times that of Social ROI.
3. TikTok Shows the Greatest Untapped Headroom to Scale Investments to Drive Highest
Optimal ROI
The analysis found that TikTok has the
greatest opportunity to scale up investment
compared to all other channel groups. TikTok’s
optimal ROI of 3.1 is higher than that of other
channel groups.
For the overall FMCG category, brands can increase spends by as much as 47%. This means there is an untapped opportunity to push spends further on TikTok while still driving profitable growth.
The above chart indicates the opportunity to scale investments on each of the above channels beyond the current spends (100%) and drive optimal ROI. For example from the above chart TikTok offers a 47% headroom to scale investments beyond the current point to drive optimal ROI of 3.1.
Despite Television’s dominant share, Digital led by TikTok is rapidly gaining at Television’s expense.
TikTok consistently demonstrates strong ROI which translates to it’s a key advantage as a strategic growth channel.
TikTok offers brands the largest headroom to scale investments. The highest investment tactic Television has the least headroom to grow.
Re-evaluating the current media mix allocation especially towards TikTok can help FMCG brands drive incremental revenue and growth.
Quantifying the ROI of marketing investments is among the top challenges for CMOs.
Marketing Mix Modeling (MMM) is a statistical methodology that measures the ROI of all marketing channels.
These insights are used for optimizing marketing budget to maximize revenue or profit.
Sufficiency analysis is a mechanism for identifying how your response (incremental revenue per execution) moves along with additional executions. It helps explain the optimal level of execution to achieve the maximum volume response and your saturation point.
In the illustrative example below, the guidance for businesses is to spend between Point B and C. Point B indicates the lowest cut-off point for investment while Point C indicates the investment at which ROI peaks. Ideally, the investment should hover around Point C for the best ‘optimal’ growth. Businesses may invest beyond Point C if they aim for higher growth, or for new brands, where momentum is far more important than efficiency.
Spend Ratio %: % of spends above the current level of spends (100%).
At an overall FMCG level the optimal spending range for TikTok is from 77% to 147% of the current spends
levels
and
there is an opportunity to grow the spends on TikTok by 47% to optimize ROI.
Analytic Edge, a C5i group company, is a leading global provider of AI-powered marketing analytics and insights. The company delivers advanced, real-time analytics solutions that help brands make faster, smarter, and more costeffective marketing and sales decisions.
Through proprietary technology available as SaaS or in-house deployments, Analytic Edge offers always-on analytics capabilities such as marketing mix modelling, revenue growth management, campaign incrementality, and new product launch evaluation. Its intuitive, point-and-click software makes advanced analytics accessible and scalable across teams and markets.
With a client base spanning sectors including e-commerce, mobile apps, gaming, consumer goods, retail, and automotive, Analytic Edge supports global organizations from its offices in Singapore, India, the US, Canada, Mexico, Brazil, the UK, China, Japan, South Korea, the UAE, and Australia.
