Key Findings from the HK2A Ad Spend Projections 2022

As social distancing measures and advice to stay at home persist as a result of the COVID-19 pandemic, below-the-line activity has slumped in Q1 of 2022. However, relaxed regulations in Q2 are expected to change the bearish market. According to Nielsen’s latest Advertising Spending Projections 2022 report organised by The Hong Kong Advertisers Association, positivity abound.

Between December 9, 2021 and February 7, 2022, qualitative online survey and executive interviews were conducted with Hong Kong advertisers across property and real estate; banking and finance; tourism, luxury and non-essentials; plus necessities like telecom, FMCG and education.

According to advertising intelligence company Admango, last year’s ad-spend peaked at HK$29.4 billion, a 29% year-on-year increase. Close to half of the surveyed advertisers also said they’ll increase ad spend this year, with a-third of those respondents suggesting double-digit growth.

Ad spend on digital is projected to reach 58% with priority on social, display, video, content collaboration and search. Programmatic outperforms direct buy with a split of 51% to 49%. Ad spend on non-digital is projected to be at 42% with focus on TV, event, print, radio and out-of-home display – of which MTR, bus and billboards ranked most popular.

After prolonged periods of staying at home, marketers are admittedly after brand building (85%), followed by new customer acquisition (69%), short-term sales (65%), product influence (54%) and long-term communication (49%) with a, unsurprisingly, heightened interest in the 35- to 49-year-old age group – the one with the most spending power.

Though Hong Kong is relaxing its social distancing measures, some pandemic-induced habits will likely remain, such as our habit of online shopping especially amongst those who now work from home. The report reflected this in that 34% of marketers put eCommerce enablement as top priority and 61% saying they’re likely to adopt.

Going forward, marketers understand that flexibility is key to not only cater to the uncertainties brought by the pandemic, but also to the evolving needs of consumers. During these times of turmoil, communication plans should take on a holistic approach that’s empathetic and sensitive to the audience. Diversification is key, as is highlighting not only the positive impact the product or service brings, but also UI enhancement and service commitment to sustain loyalty. Activation and eCommerce should also be scattered throughout the customer journey.