Survey: HK search engine marketing ad spending reaches HK$5.3bn

Hong Kong’s ad spending has seen a 1.3% YOY decline to reach HK$29.8 billion in 2024, with search engine marketing (SEM) ad spending accounting for 15% of media share, according to AdmanGo. 

The first quarter of 2024 saw a 4.9% YOY decrease in ad spending, as Hong Kong fully reopened its borders with mainland China in the first quarter of 2023, resulting in a high comparison base. Meanwhile, the government's proactive promotion of mega events in the second quarter, the expansion of individual visit scheme cities, and the consumer boost driven by the Paris Olympics in the third quarter contributed to YOY increases of 2.2% and 2.5% in ad spending for the second and third quarters respectively.

Nevertheless, uncertainties in the global economy, coupled with advertisers adjusting their strategies to accommodate changes in local consumption patterns and outbound travel habits, led to a 4.7% YOY decline in ad spending for the fourth quarter.

In the media sector, social media ad spending recorded a 15% YOY increase in 2024, making it the best-performing media. Among them, Instagram ad spending saw a significant YOY rise of 31%, while Facebook also recorded a 6% YOY increase. The data indicated that social media continued to be highly valued by advertisers in 2024. Additionally, outdoor experienced a notable 11% YOY growth, making it the best-performing traditional media.

Hong Kong search engine marketing (SEM) ad spending reached HK$5.3 billion in 2024, accounting for 15% of media share. Among SEM ad spending, text ads represented 87%, while shopping ads made up the remaining 13%. SEM was the fourth-ranked medium in terms of media market share, following desktop/ mobile, social media, and TV, making it a highly valued medium among advertisers. 

Among the top 10 Industries with the highest ad spending, most recorded positive YOY growth, with four industries achieving double-digit increases. Restaurants, which ranked fifth in ad spending, recorded a significant 16% YOY increase in 2024 among the top 10 industries, making it the best-performing industry in terms of growth. 

Retail ad spending recorded a 15% YOY increase in 2024, ranking second in terms of growth. However, DFI Retail Group which ranked fourth in ad spending among the the top 10 advertiser groups saw ad spending decline by 12% YOY in 2024.

In 2024, enthusiasm for travel among the people of Hong Kong continued to grow, with travel and tourism services ranking seventh and experiencing an 11% year-on-year increase. Similarly, pharmaceuticals and healthcare ranked second and saw an 11% YOY increase. Other industries among the top 10 that recorded positive growth include toiletries and household (3%), health and beauty food (3%), beverages (8%), fashion, accessories and eyewear (4%).

Within the top 10 advertiser groups, McDonald's ranked 10th and achieved a remarkable 48% YOY increase in ad spending.

Although banking and investment services ranked first in ad spending and recorded an 8% YOY decline in 2024, individual banking groups within the top 10 advertiser groups saw growth in their ad spending. HSBC Group (ranked third), Hang Seng Bank (ranked sixth), and Standard Chartered (ranked seventh) recorded YOY increases of 8%, 11%, and 13% respectively, reflecting that certain banking groups allocated more resources to promotional activities during 2024.

Nestlé Group recorded an 86% YOY increase in ad spending in 2024, ranking first in terms of growth among top 10 advertiser groups. Other groups with YOY increases include P&G (22%) and ROHTO Pharmaceutical (33%).

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