Advertising spending rebounds in May

PUBLISHED : Saturday, 23 June, 2012, 12:00am
UPDATED : Saturday, 23 June, 2012, 12:00am


Hong Kong's advertising market rebounded last month after a slowdown in April.

Major campaigns for 4G wireless network services and new mobile devices helped boost spending on newspapers and television.

Total advertising expenditure last month reached a record HK$3.46 billion, up from HK$3.09 billion in April and HK$2.99 billion a year earlier, according to estimates released yesterday by media-monitoring company admanGo.

'Newspapers, which were severely hit by the slowdown in April, came back strong last month,' admanGo's director of sales and marketing, Jennifer Ma, said. 'The free newspapers benefited from that growth.'

Free daily newspapers, which had 12.44 per cent of total advertising spending last month, posted revenue of HK$430.36 million, up from HK$271.12 million in May last year.

Advertising income of paid newspapers, which had an 18.72 per cent share of advertising campaigns, slipped to HK$647.91 million last month from HK$652.97 million the previous year.

Television advertising recorded a modest rise to HK$1.125 billion from HK$1.013 billion a year earlier.

'The telecommunications, mobile-phone and services industry was mainly responsible for the increased advertising spending in free newspapers and on television,' Ma said.

That industry invested HK$134.08 million in new campaigns last month, a 111 per cent increase from the previous year, to rank 10th among the city's top-spending sectors.

Samsung Electronics was the leading advertiser from that category and No 3 among the city's top-spending companies. It shelled out HK$72.68 million last month, up 655 per cent from the previous year, on high-profile campaigns promoting its newest smartphones.

Mobile network operators PCCW and 3 Hong Kong, a unit of Hutchison Telecommunications Hong Kong, were sixth and 10th, respectively, among the top-spending companies last month, marketing their 4G mobile networks and the new devices that support them. Advanced 4G networks have theoretical internet download speeds of up to 100 megabits per second.

PCCW's advertising spending last month reached HK$43.8 million, a 515 per cent increase from last year. Campaigns by 3 Hong Kong rose 375 per cent to HK$27.82 million.


The increase in revenue last month, compared with the same month last year, received by Hong Kong's free daily newspapers