TV Stays as the Leading Advertising Platform
Almost Two-third Digital Advertising Budget Goes to Social Media, Internet and Mobile Ads
25 February 2016, Hong Kong – According to the latest survey on advertising spending projections by the Hong Kong Advertisers Association (HK2A) and Nielsen, 29% of advertisers planned on increasing advertising spend in 2016, a 7-percentage-point decrease compared to last year. Despite this, there is an 11-percentage-point increase for overall digital advertising budget forecast, from 30% in 2015 to 41% in 2016.
“Marketers are becoming more cautious as they are more concerned about global and local economy performances. Nevertheless, over a quarter of them (29%) expect a positive company performance this year,” said Angel Young, managing director, Nielsen Hong Kong and Macau. “Also, consumers’ discretionary spending on clothing, dining and out-of-home entertainment remained a growing trend over the past 2 years, indicating that consumers are still willing to spend but it takes more to open their wallets. This calls for marketers and advertisers to explore innovative strategies and tactics to connect with consumers.”
According to the latest survey, nearly half of the Hong Kong marketers (48%) consider “understanding customers’ interactions across channels” as their biggest challenge, followed by “calculating the return on investment” (44%) and “the increasing media fragmentation” (44%). Amongst these top concerns, customers’ interactions and media fragmentation had become more prominent over last year with double-digit increase. In terms of total advertising budget, television stays as the leading platform (16%), followed by free/paid newspaper (14%) and outdoor advertising (9%). Within digital advertising, almost two-third of the budget goes to social media (20%), Internet display ads (19%) and mobile ads (19%).
“The advertising landscape is evolving at an extraordinary pace, as media proliferation and technology create new ways of connecting with consumers,” said Young. “While there isn’t one simple rule for maximizing advertising effectiveness, understanding how consumers engage with the ads served on various media platforms is a good place to start. On the other hand, marketers need better collaborations with agencies and media owners to co-create new content and media strategies to drive consumers’ resonance and purchase decision.”
“The power of digital ad formats cannot be underestimated, as they offer many advantages for achieving effective reach,” said Raymond Ho, chairman of HK2A. “Brands, agencies and media houses should learn to master online word-of-mouth marketing techniques, the results of which can go viral very quickly. Marketers must transform to become more transparent, accountable and evolve the relationship from a one-way sales pitch to a two-way conversation. We hope our ad spend projections will shed some light on the latest trends and best practices.”
Notes to Editor:
About the Survey on Advertising Spending and Projections 2016
The Survey on Advertising Spending and Projections 2016 was conducted between December 7, 2015 and January 20, 2016 by Nielsen. The survey covered various commercial sectors including top-spending advertisers and concentrated on both their planned advertising spending and business focuses in 2016. Self-administered questionnaires were received from key advertisers, and executive interviews were conducted with industries influential coming from banking, beauty, telecom, FMCG, public utilities and tourism for final analysis.
Nielsen Holdings plc (NYSE: NLSN) is a global performance management company that provides a comprehensive understanding of what consumers Watch and Buy. Nielsen's Watch segment provides media and advertising clients with Total Audience measurement services across all devices where content—video, audio and text—is consumed. The Buy segment offers consumer packaged goods manufacturers and retailers the industry's only global view of retail performance measurement. By integrating information from its Watch and Buy segments and other data sources, Nielsen provides its clients with both world-class measurement as well as analytics that help improve performance. Nielsen, an S&P 500 company, has operations in over 100 countries that cover more than 90 percent of the world's population.
HK2A is a non-profit organization formed by a volunteer group of advertising and marketing professionals. The key objectives of the Association are to protect the legitimate interests of advertisers and promote higher professional standards and ethics in the advertising industry.