Survey: HK ad spend reaches HK$30.1bn in 2023

Hong Kong’s ad spending has reached HK$30.1bn in 2023, representing a YOY increase of 5.4%, thanks to the resumption of cross-border travels and revived festive shopping atmosphere, according to AdmanGo. 

At the beginning of last year, the overall recovery of the Hong Kong economy driven by factors such as the resumption of normal traveller clearance between Hong Kong and Mainland and the easing of the pandemic's impact, has led advertisers to allocate more resources to promotional activities. As a result, ad spending in the first quarter saw a significant YOY growth of 21%, said the survey.

During the second quarter of last year, the YOY increase of ad spending slowed down to 5.5% with the change in spending style of Mainland travellers and increased demand for overseas travel among Hong Kong people post-pandemic.

Advertisers gradually adjusted their promotional strategies to align with market conditions, deploying campaigns only during festive seasons and peak travel periods. While ad spending in the traditionally busy third quarter coinciding with the summer travel season recorded a 2.6% YOY decline, the fourth quarter was characterised by a stronger festive shopping atmosphere with a 1.3% YOY increase.

In the media sector, social media recorded a significant YOY increase of 14% in 2023. Among them, Instagram's ad spending saw a remarkable 39% YOY growth, while mobile also registered a 12% YOY increase, these figures indicated that digital media continued to be a focal point for advertisers in 2023. Outdoor experienced a notable 11% YOY growth, making it the best-performing traditional media.

The enthusiasm for travel among the people in Hong Kong has experienced a continuous and unrestrained increase after the pandemic, among the Top 10 Industries with the highest ad spending, travel and tourism services recorded a remarkable YOY surge of 113% in 2023, ranking first in growth among these sectors, it climbed from the 20th position in 2022 to the 8th position in 2023.

The pharmaceuticals and healthcare category, which ranked second in ad spending, experienced a 7% YOY increase in 2023. In particular, GSK (ranked 7th in ad spending) and ROHTO Pharmaceutical (ranked 9th in ad spending) among the top 10 advertiser groups saw ad spending rise by 37% and 19% YOY respectively.
Ad spending in restaurants witnessed a significant 24% YOY increase, ranking second in growth among the Top 10 Industries, this propelled its position from the 9th in 2022 to the 5th in 2023.

Ad spending in toiletries and household (ranked third in ad spending) recorded a 4% YOY increase in 2023. In particular, P&G (ranked second in ad spending) also experienced a 10% YOY rise in ad spending among the Top 10 Advertiser Groups. The health and beauty food category (ranked ninth in ad spending) saw a 13% YOY increase in ad spending. In particular, Vita Green Health Products (ranked first in ad spending) recorded an 18% YOY increase in ad spending.

On the other hand, banking and investment services (ranked first in ad spending) experienced a 12% YOY decrease in ad spending, individual banks within the Top 10 Advertiser Groups displayed different advertising strategies, HSBC Group (ranked fourth in ad spending) and Hang Seng Bank (ranked sixth in ad spending) recorded a 22% YOY decrease and a 28% YOY increase in ad spending respectively.

Real estate developers adjusted new property sales arrangements in response to market conditions, leading to a 5% YOY decrease in ad spending for the industry, the industry slipped slightly from the 6th position in 2022 to the 7th position in 2023.

MTR Corporation saw a significant 202% YOY growth in ad spending in 2023, securing the top rank in growth among the Top 10 Advertiser Groups, other groups with YOY increases include DFI Retail Group (ranked third in ad spending) with a 4% increase and LVMH Group (ranked fifth in ad spending) with a 22% increase.

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