Survey: HK ad spend reaches HK$7.45bn in Q2 2024

Hong Kong's ad spending has reached HK$7.45 billion in Q2 2024, marking a 2% YOY increase, and this is mainly driven by the recovery in tourism, according to Admango.

The expansion of Individual Visit Scheme cities in May this year has driven continuous economic development, leading to a rebound in local ad spending in the second quarter, according to the report.

This indicates that despite changes in consumer behaviour posing challenges, the government's promotion of major economic events has further driven the recovery of tourism in Hong Kong.

In terms of media analysis, digital media (social media, mobile, and desktop) continued to perform well in the second quarter of 2024. Social media ad spending recorded a 22% YOY increase, with Instagram leading at a 42% YOY rise, the best performance among social media platforms, while Facebook saw a 12% YOY increase. Both mobile and desktop ad spending recorded a 3% YOY increase.

Among traditional media, outdoor and radio saw YOY increases of 15% and 6% respectively, while TV and newspapers experienced YOY declines of 13% and 16%.

Top 10 industries with the highest ad spending

Among the top 10 industries with the highest ad spending, six recorded double-digit increases in ad spending in the second quarter. The 10th-ranked fashion, accessories and eyewear saw a 21% YOY increase in ad spending, the highest among the top 10 industries. 

Meanwhile, pharmaceuticals and healthcare emerged as the first-ranked industry for ad spending with a 15% YOY increase, moving from second place last year to first place. Ad spending for restaurants rose by 18% YOY, ranking second in terms of growth percentage. Other industries in the top 10 with double-digit growth include beverages at sixth place (13%), travel and tourism services at seventh (14%), and retail at eighth (11%).

In the second quarter of 2024, banking and investment services saw a slight decrease of 3% YOY.

Top 10 advertiser groups

Among the top 10 advertiser groups, Procter & Gamble (P&G) led the pack with a 20% year-over-year increase in ad spending. Vita Green Health Products followed, experiencing a 10% decrease in ad spending.

ROHTO Pharmaceutical ranked third, seeing a 44% increase in ad spending. It is followed by DFI Retail Group, which remained constant in its ad spending. The fifth-ranked Hang Seng Bank recorded a 6% YOY increase in ad spending. McDonald's stood out with a remarkable 110% year-over-year increase, securing the highest growth percentage among the top 10 advertiser groups.

Rounding out the list were GSK, Nestle Group, and Cathay Pacific, with 27%, 98%, and 56% increases in ad spending, respectively.

Looking ahead to the second half of the year, the Olympic fervor and the peak summer shopping season, coupled with the increase of duty-free allowance for luggage articles for Mainland resident visitors starting in July, are expected to encourage industries to invest more resources in promotional activities, it is hopeful that local ad spending is anticipated to continue steadily growing in the third quarter.

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