Is Hong Kong's ad industry betting on a 2026 rebound?

Hong Kong’s advertising market recorded a slight decline in 2025, with total ad spend reaching HK$33.9 billion, according to admanGo’s latest ad spend report. The year followed a "decline-then-stabilisation" trajectory.

Year-on-year (YOY) decreases were observed across the first three quarters, before a notable 5% YOY rebound in Q4, signaling a gradual recovery in advertiser confidence towards the end of the year.

While US tariffs had yet to directly impact local business activity in early 2025, changing consumer behaviours—including a continued trend of Hongkongers traveling northbound or overseas—led to structural shifts in local consumption.

This prompted advertisers to adopt a more conservative approach to budget allocation. However, positive developments, such as the government’s promotion of mega events and interest rate cuts from banks in the second half of the year, helped counterbalance the macroeconomic uncertainties and supported overall consumer sentiment.

As a result, certain sectors—including banking, pharmaceuticals, travel, and toiletries—saw YOY increases in ad spend, reflecting a modest recovery in market confidence.

Kenny Ip, vice president of media and partnership management at WPP Media HK, described 2025 as a cautious year for many advertisers. He said:

“We also saw a lot of Hongkongers spending more time and money outside the city — many crossing the border to the north, or overseas — which changed where and how brands wanted to invest. That uncertainty only started to ease toward the end of the year, which is why Q4 showed a clearer recovery, as admanGo pointed out.” 

Echoing his thoughts, David Chan, head of trading and partnership, dentsu Hong Kong, highlighted the shift in Mainland Chinese visitor behaviour, now more focused on experiential spending.

“For restaurants, people are spending more on ‘This This rice’ and most of these are small shops with no advertising budgets at all. The bigger QSR (Quick Service Restaurants) and restaurant chains are trying their best to maintain their competitiveness and top-of-minded awareness by offering tactical discounts and offers to encourage repeated purchases,” Chan added. 

Social media leads the channel performance

From a media perspective, social media ranked first in adspend in 2025, recording a 15% YOY increase, the strongest performance among all media channels. Within social media, Instagram posted a 35% YOY growth in adspend, the highest growth rate in the category. Mobile, TV, and SEM ranked second to fourth respectively. Among traditional media, TV and outdoor both recorded YOY growth in adspend. 

“Social media is fast, flexible, and close to the consumer,” said WPP’s Ip. “Platforms such as Instagram were ideal for brands in beauty, banking, and travel that needed quick scale and measurable performance.”

He noted that while print and some traditional formats remain under pressure, they are far from obsolete: “TV and outdoor still hold value, especially for banks and luxury brands seeking strong visibility.”

Social platforms are clearly driving changes in consumer behaviour, not only by providing information but also by significantly boosting brand awareness and product exposure in ways that resonate strongly with the general public, said Derek Yip, chief operating officer, Omnicom Media Hong Kong.

"Unless innovative ideas emerge to capture audience attention effectively, shifts in budgets are most likely to impact print media rather than TV or OOH advertising, which continue to offer strong reach and visibility."

Chan from dentsu added that the return to upper-funnel brand building also contributed to the rebound in traditional media: "Despite the decrease in spending in print in the past few years, we also see the launching of new titles, such as GQ Hong Kong, which opens up more targeted options for advertisers.” 

He also pointed to emerging print titles such as GQ Hong Kong, offering new, targeted opportunities for advertisers despite broader print challenges.

Looking ahead

Looking toward 2026, WPP’s Ip said he is cautiously optimistic about ad spending growth in 2025. “The rebound in Q4 is important, and we are already seeing more positive conversations with clients for 2026 — especially in banking, travel, insurance and healthcare. These sectors stayed active in 2025 and are now planning more confidently.” 

“From a global perspective, WPP Media’s TYNY report also points to continued growth in digital, social video, AI‑driven advertising and out‑of‑home — areas where Hong Kong is well positioned. We are seeing this play out locally, particularly in digital OOH and social video,” he added. 

Growth will not be explosive, but the direction is positive. 

Based on a review of clients’ activities and ad spend over the past year, OMG's Yip is also cautiously optimistic about 2026 growth in Hong Kong. "A key opportunity is China media solutions such as Xiaohongshu, Douyin, and other drama/short video platforms, which offer expanded reach to both local audiences and Chinese tourists, along with strong e‑commerce potential."

"We expect increased investment in these channels from local clients. We expect increased spending here from local clients. Traditional media is expected to remain resilient amidst broader market pressures and the evolving media landscape. In summary, 2026 is likely to deliver selective, measured growth, with a clear emphasis on digital channels rather than broad‑based expansion," he added.

With tourism increasing in Hong Kong, Chan said he is seeing the retail, cosmetics and skincare and restaurant industries working hard to reinvent themselves and attract new customers.   

"This saw a strong rebound of ad spend in Q4 2025, and I have confidence that investment in Hong Kong will be back to positive trajectory in the near future. This does, however, depend on the outcomes of the global geopolitical environment and how soon property markets in Hong Kong will see a bounce back."

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