Two Words for Marketers under Economic Uncertainty: Be Innovative

Two Words for Marketers under Economic Uncertainty: Be Innovative

Marketers and advertisers in Hong Kong are becoming more cautious as they are more concerned about global and local economy performances. According to the latest survey on advertising spending projections by the Hong Kong Advertisers Association (香港廣告客戶協會, HK2A) and Nielsen, 29% of advertisers planned on increasing advertising spend in 2016, a 7-percentage-point decrease compared to last year. 

The good news is, 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. And our survey shows there is an 11-percentage-point increase for overall digital advertising budget forecast, from 30% in 2015 to 41% in 2016.

So, what does that mean?

This calls for marketers and advertisers to explore innovative strategies and tactics to connect with consumers.

Needless to say, the advertising landscape is evolving at an extraordinary pace, in both traditional and online platform. Media proliferation and technology create new ways of connecting with consumers. Understanding how consumers engage with the ads served on various media platforms is getting extremely essential more than ever for maximizing advertising effectiveness. And, 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 Survey on Advertising Spending and Projections 2016 (2016廣告預算調查) covered various commercial sectors including top-spending advertisers and concentrated on both their planned advertising spending and business focuses in 2016. Accordingly, television stays as the leading platform (16%) among total advertising budget, 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%).