AI and nano influencers: How can industry players level up creativity in 2025?

Influencer marketing is often used in creative campaigns to resonate with target audience. With the emergence of macro and nano influencers, brands in Hong Kong have shifted their budget from well-known celebrities to smaller KOLs, which led to a significant drop in influencer marketing ad spending in Hong Kong.

For instance, OOHA HK, which previously collaborated with MIRROR members such as Anson Lo, has opted for partnerships with smaller influencers. Similarly, Blue Girl Beer HK has transitioned from working with MIRROR’s Edan Lui to collaborating with a wider range of smaller influencers.

According to Cloudbreakr's influencer marketing spending report, the influencer marketing ad spending in Hong Kong for Q2 2024 decreased by 10.2% to reach HK$135 million, of which the F&B industry saw a significant decline, dropping from HK$15.2 million in 2023 to HK$9.6 million in 2024.

The most significant reductions are observed among the participation of micro and nano influencers, which dropped by 73.7% and 23.6% respectively, said the report. Top and macro influencers also saw declines, reflecting a broader industry trend of reduced spending on high profile campaigns. One of the primary reasons for the reduced spending in 2024 is the strategic shift by brands from high-profile collaborations with boy band MIRROR to engaging smaller influencers.

On the other hand, while 82% of respondents have realised an increase in operational efficiency with AI by streamlining workflows and automating content generation, 54% of marketers have also used AI to achieve faster content generation and campaign rollout, according to CleverTap’s AI customer engagement report.

Will this continue to trend in 2025? Below, MARKETING-INTERACTIVE spoke with creative leaders in Hong Kong to find out what industry players should take note of in the coming year.

Ricky Lam, CEO, Havas Creative Hong Kong

We have seen an “uneven recovery” among industry sectors in 2024. Business growth is slower than expected for many brands, particularly retail clients, who are clearly impacted by the transformation of consumption patterns among locals and inbound visitors.

Brands’ marketing budgets remain tight overall, though we see an increase in the quantity and frequency of marketing activities. Facing revenue and margin pressures, agencies are dedicating more time and effort to pitching. The challenge lies in identifying the right (and transparent) opportunities and keeping our best talent engaged to improve new business conversion.

As we move into 2025, business growth is certainly top-of-mind for both agencies and brands, but growth may still be slow (particularly for some sectors) due to increased complexities and uncertainty, driven by multiple factors.

Agencies need to create more meaningful and strategic business-level partnerships that help clients navigate this complexity and to accelerate growth. Meanwhile, to drive this growth, agencies can’t lose sight of talent. Workplace culture is key to attracting and retaining top talent. Agencies need to foster a healthy and engaging work environment that embraces positivity, collaboration, innovation, and client satisfaction.

Rudi Leung, director and founder, Hungry Digital

The economic shifts reshaping Hong Kong in 2024 have affected every market sector, from retail and property to advertising. In challenging times, marketers tend to be more cautious with their budgets, often concentrating on the lower funnel of sales and, as a result, shifting their focus to purely transactional marketing.

During this period, generic celebrity endorsements have continued to dominate top-funnel advertising. This approach limits creativity and undermines the brand-building efforts that once made Hong Kong a creative hub in Asia. Our city's identity has always been rooted in grit and cultural depth. However, as we prioritise algorithms over creativity, we risk losing that authentic "Hong Kong style" – a unique essence that no AI can replicate.

As we look ahead to 2025, I look forward to collaborating with clients who strive to create something beyond mere campaigns – who want to build brands that resonate and truly matter to our society. In a time when many are feeling economic uncertainty, I hope that our works can bring a bit of optimism to Hong Kong, producing work that drives results and connects with people on a deeper level, uplifting spirits and strengthening the bond between brands and their audiences.

At its core, advertising is about more than selling; it's about purpose and shared values. It is a form of storytelling and entertainment that can build trust, create joy, and shape culture. Great advertising is a service to the audience, enriching lives through creativity rather than focusing solely on conversions.

Chris Kyme, co-founder and creative director, Kymechow

While everyone is focused on the increasing role of AI in relation to what we create and how we create it, or on short-form videos and personalisation, and no doubt these are all pertinent and exciting topics for the future, in other markets we are seeing a renaissance of sorts in the creative use of outdoor.

Beautiful big billboards with witty headlines and intriguing visuals are jostling for attention in public spaces, some not so big but equally as brilliant.

What’s more, they convert into social media currency by netizens eager to salute their cleverness (everyone loves a good ad). Be creative and you enjoy the online amplification affect.

Meanwhile in Hong Kong, despite Hong Kong Baptist University sharing its annual study on the use of outdoor in Hong Kong, project-led by Professor Kara Chan, and revealing solid data on what isn’t working and why, the majority of outdoor ads continue to be a pot pourri of me-too celebrity adorned blandvertising efforts. Or colourful explosions of happy faces and crazy typography designed to bludgeon the general public over the head with dumbed-down exciting messages.

So when will advertisers, especially those without the big budgets to splash on famous faces, wake up to the power of creativity and start to respect the intelligence of their target audience?

We know the talent is here, and there are some bright spots, like the recent Uber Taxi ‘Skip’ posters (simple, bold and well art-directed), and brands such as HSBC, IKEA and McDonald's lifting the bar a bit, but (and this is no different in many other markets I might add), it’s time advertisers recognised the power of outdoor and strived to make better use of it. It’s not going away. Maybe in 2025 we can start to see that happen, it’s certainly a big opportunity.

Jay Ng, director, So Don’t Bore

As we look towards 2025, the reality is clear – marketing budgets are continuing to shrink, bringing us face-to-face with a more challenging landscape.

Gone are the predictable trends we could bank on. Like remember when we thought generative AI would solve everything? Those bubbles of hype have settled into a more realistic space.

But here's where it gets interesting. While Threads is weaving its way into our social media fabric, and short-form content is capturing shorter attention spans, the real game-changer isn't about jumping on every new trend – it's about jumping smart.

In an environment where every marketing dollar must deliver more value, strategic creativity becomes our strongest asset. The winners of 2025 won't be those with the biggest budgets, but those who can turn limited resources into unlimited possibilities. Think of it as financial minimalism meeting creative maximalism.

Who's going to thrive in this environment? The dynamic duos of agile marketers and adaptable agencies can pivot faster than a start-up's business model. They're about crafting calculated risks that feel fresh. After all, playing it safe might be the riskiest move of all.

At So Don't Bore, we see 2025 as a period of unprecedented change in marketing. The old rules are being rewritten, creating new opportunities for those willing to embrace uncertainty, and don't let the "it's never been done before" stop you – because guess what? We've never been here before either.

Let's make 2025 the year where constraints breed creativity, where limited budgets launch limitless ideas, and where being boring is the only real marketing. After all, in a world where everyone's tightening their belts, it's time to loosen up our thinking.

Welcome to the new frontier. It's wild out here – and that's exactly why it's exciting.

Leung Chung, head of creative, Sunny Idea HK

As we reflect on the Hong Kong market in 2024, are there really any big worries for marketers? With so much information, data, and successful cases available, could our biggest challenge actually be the opposite?

With digital and social media well-established, and nearly monopolised, and influencers offering straightforward answers, are we in a comfortable spot, or are we just settling for less? Campaigns today often feel systematic and hardly stand out. Executing campaigns, both in format and structure, has become quite similar. Even video flow, duration, and style are closely guided by the data and past cases we have.

However, as we look ahead to 2025, it’s time to start worrying. We must face real changes as our audiences are no longer just local Hong Kong residents. The city is trying to attract people and brands from Mainland China and all over the world. Can we continue to rely on existing popular social platforms and achieve the same results? Will we rise back to international prominence or remain stuck in our comfort zones?

This is the moment for us to embrace gut feelings and bravery. It’s not just about what brands and agencies can do together; it’s about adopting the mindset of a risk taker. To truly connect with consumers, one-size-fits-all communication and strategies may no longer be effective. Brands will need to evolve their product offerings and messaging to attract more unique and niche interest groups.

Brand owners can take centre stage, fostering honest and direct communication with consumers, alongside creativity and storytelling from the very beginning of the marketing process. Embracing these changes will help us create impactful work that genuinely connects with our target audiences and reflects the vibrant, diverse community we serve.

Desmond So, CEO, Uth Creative

As we look towards 2025, the advertising landscape in Hong Kong is poised to face significant challenges that will require thoughtful navigation by agencies. One of the most pressing concerns is the current economic climate. Hong Kong is grappling with considerable economic challenges, leading advertisers to adopt a more cautious approach to spending.

This scepticism can serve as an opportunity for brands to rethink their strategies, emphasising creativity over mere celebrity endorsements. A well-executed, innovative campaign can often deliver greater value than a hefty budget spent on influencers.

This economic backdrop also influences client loyalty. Many clients now prefer to invite agencies to pitch on a project basis rather than establishing long-term partnerships. This shift complicates resource planning for agencies and contributes to a precarious environment where talent retention becomes increasingly difficult. With the pressure to secure new projects constantly looming, agencies may find it challenging to maintain a stable workforce.

Furthermore, the growing trend of allocating substantial budgets to key opinion leaders (KOLs) and celebrities raises concerns about the overall value placed on creative ideas and production quality. While it's undeniable that KOLs can bring significant benefits, an over-reliance on them can overshadow the importance of strong concepts and execution. A balanced approach that values both creative strategy and influencer partnerships is essential for sustainable success.

Finally, the issue of talent retention, particularly in account servicing roles, is becoming critical. Many professionals are drawn to the perceived stability and promise of careers on the client side, which often seems more appealing amidst the pressures of agency life. This talent drain creates a cyclical problem: without support from advertisers to foster stable relationships, agencies struggle to maintain their best talent.

In summary, the future of advertising agencies in Hong Kong will depend on their ability to adapt to economic realities, cultivate client loyalty, balance budget allocations, and retain skilled professionals. By embracing creativity and innovation, agencies can position themselves for success in an evolving landscape.

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