Hong Kong’s digital advertising revenue to overtake TV next year
Study shows city’s Internet market will be worth US$1.07 billion by 2020
A new report is predicting Hong Kong’s digital advertising revenue will exceed that of television for the first time next year, driven by online video streaming as retail sales tail off.
PwC’s global entertainment and media outlook 2016-2020 claims the city’s Internet advertising market will be worth US$1.07 billion by 2020, up from US$650 million in 2015, or a compound annual growth rate of 10.6 per cent, as advertisers target customers watching videos on their mobile phones.
The milestone shift in spending comes as traditionally strong television advertising in Hong Kong has been hit by growing competition from digital media and falling retail spending by mainland Chinese tourists, said Cecilia Yau, PwC Hong Kong’s entertainment and media partner.
“Hong Kong has been enjoying the benefits of an increasing advertising dollar for so many, many years,” she said.
“The decrease in the number of [mainland Chinese] tourists means total dollars on the retail market has dropped, which has reduced the advertising dollars going into mass media, like TV.”
“The retail market has dropped, which has reduced the advertising dollars going into mass media, like TV.”
April’s retail sales fell 7.5 per cent on last year, led by a 16.6 per cent drop in sales of watches and other valuable gifts, a segment traditionally popular with mainland tourists.