First-quarter spending climbs to record HK$8.78b

Major campaigns from Samsung Electronics and cosmetics brands Lancome, Estee Lauder and SK-II helped lift advertising spending in Hong Kong to an industry record in the first quarter.

Media-monitoring firm admanGo yesterday reported that advertising expenditure in the city rose 14 per cent to HK$8.78 billion, up from HK$7.72 billion a year earlier, as brands popular with mainland shoppers boosted their marketing efforts.

About 90 per cent of advertising campaigns in the first three months of this year went to television, newspapers, magazines and outdoor media.

'The three top-spending brands in Hong Kong last quarter were all from the cosmetics and skin care industry, reflecting keen competition in this sector,' admanGo sales and marketing director Jennifer Ma said.

French make-up, skin care and fragrances brand Lancome was Hong Kong's No 1 advertiser last quarter, as it launched campaigns featuring actress Emma Watson from the Harry Potter film franchise.

The L'Oreal unit advanced from No17 the previous year after it boosted spending 123 per cent to HK$81.31 million.

Estee Lauder - the leading advertiser during this year's Lunar New Year break - ranked second last quarter, with a large portion of its marketing budget invested in campaigns for its 'Advanced Night Repair Synchronized Recovery Complex' serum.

The New York-based company increased spending 48 per cent to HK$77.55 million from the previous year.

SK-II, the Japanese cosmetics brand owned by consumer goods giant Procter & Gamble, became the city's No 3 top-spending advertiser last quarter from No20 the previous year. Its spending grew 115 per cent to HK$76.84 million.

It was Korean electronics giant Samsung, however, which recorded the biggest year-on-year spending increase. It climbed to No6, from No48 the previous year, after its campaign expenditure swelled 196 per cent to HK$67.51 million.

Ma said a large portion of Samsung's advertising budget went to promote its Galaxy Nexus smartphone, Galaxy Tab 7.7 media tablet and Galaxy Note, the company's hybrid smartphone/media tablet.

The banking sector remained the top spender among all industries last quarter. Its advertising reached HK$773.04 million, down 5 per cent from the previous year due to reduced promotions of investment services and warrants.