Digital campaigns may get boost from cautious advertising spending
Advertisers in Hong Kong are casting a wary eye on the state of the economy, which could lead to more spending on digital campaigns this year.
That outlook emerged from the latest annual survey conducted by the Hong Kong Advertising Association and market-measurement firm Nielsen on the spending projections this year of about 100 key advertising and marketing executives in the city.
Wanda Gill, the vice-president for media and marketing effectiveness at Nielsen, yesterday predicted a steady increase in advertising expenditure, though “more marketers are exercising caution”.
“While 57 per cent of the respondents are optimistic about their companies’ performance, there is concern about the Hong Kong economy as well as the global economy,” Gill said.
Of those polled, 36 per cent said they expected to increase their advertising budget, down from 42 per cent last year.Gill said the survey found most marketers, about 63 per cent, were mainly concerned about an economic downturn in Hong Kong. Many respondents also lacked confidence about the global economy, with those expecting improved prospects declining to 20 per cent from 35 per cent last year.
Digital represents a smart platform to reach many Hong Kong consumers who are online using their smartphones
The survey showed that 70 per cent of total advertising budget will still be allocated to traditional media, led by television. Gill, however, said marketers are looking to shift more advertising dollars to digital, with 30 per cent of respondents planning to add funds for online and mobile campaigns.
Kevin Huang, the chief executive at advertising agency Pixels, said: “Advertisers are a bit more cautious not because they don’t have the budget, but because they want to be more efficient and smart in their campaigns.”
“Digital represents a smart platform to reach many Hong Kong consumers who are online using their smartphones.”
Advertising spending in Hong Kong last year rose 5 per cent to reach a record-high HK$44.9 billion, from HK$43 billion in 2013, as leading industries increased their online and mobile campaigns, according to data released last month by media-monitoring firm admanGo.
Advertising association chairman Raymond Ho Wai-ming said marketers still “need better analytical and measurement tools to determine the return-on-investment” of digital campaigns.
