Hong Kong's ad spend on digital media sees positive YOY growth

Hong Kong’s ad spend has recorded a 4% year-on-year (YOY) increase in the third quarter this year, with a total spending of HK$7.5 billion. All digital media also recorded positive YOY growth in the same period, according to the latest report by Admango. 

This comes as the city has progressively relaxed inbound travel quarantine since July, which has injected new vigour into local economic activities. In addition, the new issue of 2022 consumption voucher in August facilitated the promotion of various industries during the peak summer consumption season.

In terms of media, all digital media recorded positive YOY growth in Q3, with Instagram (41%) recorded the most YOY increase, followed by desktop (24%), social media (12%) and mobile (7%). In particular, ad spend on Facebook and Instagram recorded a YOY increase of 4% and 41% respectively in Q3.

When it comes to traditional media, TV ad spend in Q3 was similar to last year. Although ad spend in newspapers and magazines were not yet at last year's level, they generally recorded month-on-month increase in Q3.

Among the top 10 industries with the highest advertising spending in Q3, six of them recorded a yearly ad spend growth. Ad spend in health and beauty food went up by 15% YOY in Q3, ranking first among the top 10 industries. 

Ad spend in retail also saw a 7% YOY growth in Q3, of which Vita Green Health Products recorded an increase of 13% YOY among the top advertiser groups, while DFI Retail Group marked a 9% YOY increase, ranking the third among the advertiser groups.

Among the top 10 Industries with the highest ad spend in Q3, ad spend of banking and investment services has risen to the top, recording a YOY decrease of 3%. Certain banking groups still showed YOY growth in Q3. In particular, HSBC Group and Hang Seng Bank, which ranked first and seventh among the advertiser groups, recorded a 17% and 7% YOY growth in Q3 respectively.

According to a study conducted by admango in March 2022, Hong Kong's adspend increased by 3% year on year in January and February 2022. As the market was also suffering from the pandemic in the first two months of last year, there was still a 15% year-on-year increase in January. But in February, adspend in Hong Kong decreased by 10% year-on-year. Data showed that as the number of confirmed cases began to decline, adspend rebounded within a month after the pandemic stabilised and continued to grow throughout the year. The report said most advertisers had merely chosen to delay their campaigns instead of reducing their budgets.

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