What does the future hold for HK media players in 2025?

With more agencies investing in new technologies such as AI, the transformation of AI and changes driven by algorithms are poised to shake up the media landscape in 2025.

In fact, a new study by Carat, dentsu X and iProspect titled "Algorithmic era of media", unveiled that the upcoming year will drive toward a fully addressable, shoppable and accountable media system.

The rapid integration of AI across the media value chain has transformed how brands interact with consumers, according to Will Swayne, global practice president, media, dentsu.

Retailers could dictate the media market sooner than later, whereas algorithms will expand to every facet of online advertising, the quality approach could become the new standard for success, said the report.

Below, MARKETING-INTERACTIVE spoke with media leaders in Hong Kong to find out what the future of media holds as we enter 2025.

Simone Tam, CEO, Greater Bay Area, dentsu Hong Kong

As we look towards 2025, the marketing and advertising landscape in Hong Kong is set to experience notable challenges amidst economic uncertainties. However, the need to survive, excel, and grow remains paramount.

Several key trends are emerging, each presenting unique challenges and opportunities for brands and agencies alike.

The integration of AI in marketing is no longer a futuristic concept, but a present reality. According to a report by PwC, AI could contribute up to US$15.7 trillion to the global economy by 2030, with significant impacts on marketing and advertising.

AI-driven strategies are revolutionising how we understand consumer behaviour and deliver personalised experiences. Media and customer experience management agencies are already leveraging AI in their day-to-day operations to enhance efficiency and drive targeted campaigns. However, creative agencies need to approach AI with caution.

While AI can be a powerful tool for efficiency and inspiration, its use in creative output must be carefully managed due to legal considerations. Ensuring that AI complements rather than replaces human creativity is crucial to maintaining originality and compliance.

In a challenging market with limited product innovation and marketing budgets, creativity remains a key differentiator. A study by McKinsey highlights that companies investing in creativity are 67% more likely to achieve above-average organic revenue growth. Brands need to think outside the box to capture consumer attention and stay relevant.

Leveraging passion points such as Anime, IP, gaming, sports, and cross-brand partnerships can be particularly effective solutions. These strategies allow brands to create unique and compelling narratives that resonate deeply with consumers, transforming target audiences into engaged communities.

Despite the economic challenges, Hong Kong still boasts a significant population of wealthy and middle-class families. These consumers have become more value-conscious, as evidenced by the growing trends of outbound travel to destinations such as Japan and mainland China. They seek experiences that offer genuine value. Brands need to understand this and develop experiences and services that deliver on this promise.

Understanding the unique demographic make-up of Hong Kong is essential for creating highly relevant and effective campaigns. Tailoring marketing strategies to specific groups, such as affluent female consumers or Mainland expatriates who have become new Hongkongers, can significantly increase ROI.

As we navigate towards 2025, the marketing and advertising industry in Hong Kong must adapt to emerging trends such as AI integration, creative partnerships, and value-driven consumer demands. By truly understanding the unique needs of local demographics, brands can create compelling and effective campaigns that ensure sustained growth and relevance in a dynamic market.

Hong Kong remains one of the greatest places to live and do business. I have great faith in our ability to weather the storm and remain hopeful that the marketing and advertising industry in Hong Kong can navigate the complexities of 2025, and beyond, ensuring sustained growth and relevance.

Augustin Chan, director, GOAT, GroupM Hong Kong

The economic winds of change are blowing, and 2025 promises to be another challenging year for all of us. But amidst the uncertainty, marketers and agencies can not only survive, but thrive by adapting their strategies and embracing new opportunities. Forget weathering the storm – we need to adapt and know how to sail.

In a tighter economy, consumers become laser-focused on value. Discounts are a start, but true value goes deeper. Highlight the long-term benefits of your products or services: durability, cost-effectiveness, and problem-solving capabilities. Think subscription models, bundled offers, and loyalty programmes that provide ongoing rewards and value.

Empathy with a ata-driven performance approach. Acknowledge the economic pressures consumers face and offer practical solutions. We need to address it with data-driven decision-making, track every marketing dollar, and prioritise performance marketing channels and content that deliver measurable ROI.

The Greater Bay Area (GBA) is a golden opportunity in a challenging climate. The GBA presents a beacon of opportunity. This dynamic region, with its diverse consumer base, offers significant growth potential. But a one-size-fits-all approach won’t work.

To succeed in the GBA, invest in understanding its unique nuances. Tailor your strategies to specific demographics and cultural preferences. Master Chinese platforms such as Xiaohongshu, Douyin, and WeChat. Collaborate with GBA-based influencers who resonate with local audiences. And, the practicalities: streamline cross-border logistics and e-Commerce for a seamless customer experience. Localisation is key – ensure your messaging speaks directly to the GBA consumer in their language. We can’t assume that what works in Hong Kong will automatically resonate across the border.

The year ahead may be challenging, but it also presents a unique opportunity for Hong Kong marketers to refine their strategies, embrace data-driven decision-making, and unlock the potential of the GBA.

Joanne Tong, managing director, IPG Mediabrands Hong Kong

The biggest worry that Hong Kong marketers faced in 2024 was global uncertainty. Hong Kong, as a major financial hub, our economy is highly sensitive to global economic fluctuations.

Changing consumer behaviours

Uncertainty makes consumers more cautious in their spending. In 2025, Hong Kong consumers may prioritise essential goods over luxury items, which can lead to declines in sectors such as retail and hospitality. Brands may need to pivot strategies to emphasise value and necessity in their marketing campaigns.

Floundering retail landscape

Hong Kong’s retail sales declined for a sixth straight month year on year in August, following 15 months of continuous growth after the Coronavirus pandemic , falling by 10.1% as changing consumer patterns, including the trend of residents heading across the border for shopping and entertainment, continued to hit business.

Growth in sustainability

At the same time, as global discussions around climate change intensify, Hong Kong businesses face pressure to adopt sustainable practices. Companies that prioritise sustainability in their operations and marketing may find it easier to attract environmentally conscious consumers, which is becoming increasingly important in the region.

In response to these impacts, as industry leaders, we must help clients to craft a stronger brand story and leverage on local insights.

– Craft messaging that focuses on the brand’s adaptability and commitment to supporting consumers during uncertain times.

– Utilise data analytics to understand changing consumer preferences and tailor offerings that resonate with local needs.

– Foster partnerships with other local businesses to create bundled offerings or joint promotions that can attract consumers amidst economic caution.

The industry may come together in several ways:

Collaborative workshops: Organising industry forums or workshops to share best practices in digital marketing and compliance strategies can help marketers adapt to changes collectively.

Share research and development: Investing in research on consumer behaviour and market trends can provide insights that can help marketers pivot their strategies more effectively.

Sustainability initiatives: Partnering with NGOs or local communities to create joint sustainability campaigns can enhance brand image while fostering a sense of community and shared purpose.

As for trends anticipated in 2025, we can expect:

AI-driven marketing: More brands will leverage AI for predictive analytics to tailor marketing strategies, enhancing the customer experience.

Omni-channel experiences: Consumers will expect seamless transitions between online and offline experiences, prompting brands to integrate their marketing channels more effectively.

Authenticity and transparency: Brands that communicate openly about their practices, especially regarding sustainability and ethical sourcing, will likely resonate more with consumers.

Community engagement: Brands will focus on building communities around shared values rather than just transactional relationships, cultivating loyalty and brand advocates.

By addressing these concerns and trends collaboratively, the marketing industry in Hong Kong can navigate challenges while driving innovation and growth.

Derek Yip, chief operating officer, OMG HK

"While the retail landscape is facing challenging conditions, there are opportunities to leverage media investments, particularly through retail media networks and eCommerce platforms. Brands should focus on creating engaging campaigns that resonate with consumers, especially Gen Z and families. Adopting new approaches and emphasising the customer experience can enhance visibility, improve image, and strengthen audience connections for brands.”

Florence Wong, CEO, OMD HK

“Hong Kong media ad spend experienced a slight growth in Q3, but it could not sustain the momentum in September and October due to retail weaknesses and the short outbound travel to Southern China every weekend.

The Hong Kong government reported a decline in retail sales at 6.9% in September, compared to the same period last year. Large enterprises' forecast for the retail business was at the lowest point of 16% compared with other categories. If the trends continue in Q4, the retail industry in Hong Kong will technically go into recession. This situation serves as a warning for most CPG and FMCG brands or manufacturers.

Despite the current challenges in private domestic consumption, brands have an opportunity to focus on media investment. Prioritising retail media networks and eCommerce platforms can generate positive sales.

Some upcoming retail media networks, such as Dairy Farm retail media and AS Watson Optimo retail media, have started communicating with media agencies and brands. These networks are unique in that their advertisement is based on purchase conversion as the ultimate goal. Their first-party-owned purchase behaviour data is valuable in exchanging media investment with brands and media agencies.

Another channel that brands can focus on is eCommerce platforms; for instance, Taobao HK has demonstrated its collaboration power to present a season of purchasing in 2024. Whether their promotional theme targets overseas markets, family gatekeepers, or to lure customers into shopping during Double 11, the strength of their call-for-action is evident in their recent sales results.

Brands have a wealth of options. By considering various awareness approaches for advertising campaigns, such as IP collaborations or experiential events, they can meaningfully connect with Gen Z and parents with kids. The positive impact of global trends in experiential events on brand image and assets is a testament to the power of creativity in marketing.”

Lawrence Yang, CEO, Publicis Media Hong Kong

In 2024, the acceleration of AI integration has been both disruptive and enabling – while it has enhanced operational efficiency, it has also created uncertainty around job roles and skill requirements. Our focus must shift from viewing AI as just a tool for automation to leveraging it as a catalyst for creative advancement and strategic thinking.

In 2025, we expect to see more brands harnessing the power of AI to deliver tailored experiences, from personalised product recommendations to dynamic creative content inspired by real-time customer preferences. For brands and agencies that are quick to embrace and master the art of AI personalisation, 2025 will be a transformative year.

We are seeing more exchanges between Hong Kong and Mainland China markets. This development goes beyond mere expansion; it is transforming our approach to campaigns.

We are observing that Mainland Chinese consumers are becoming more discerning in their brand interactions, increasingly influenced by Hong Kong's reputation for quality and authenticity. As a result, they expect higher standards in branding and consumer engagement, while marketers in Hong Kong are embracing new platforms such as Douyin and Xiaohongshu.

Success in 2025 will belong to those who can effectively connect these markets while preserving their unique local identities. This ability to blend Hong Kong's strengths with an understanding of Mainland China's consumer expectations will be crucial for brands aiming to resonate with audiences on both sides.

Lastly, proving marketing effectiveness remains a critical industry challenge heading into 2025. With economic pressures and fragmented digital channels, marketers must develop better ways to demonstrate ROI across both performance and brand building. Success will require a collective effort to establish new measurement standards that truly capture marketing's business impact, moving beyond siloed metrics to more holistic evaluation frameworks.

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