10 years on Hong Kong media soars

Hong Kong - As Hong Kong celebrates 10 years since the handover on Monday, the advertising industry in the territory has remained dynamic and has become more competitive, driven by the rapid development in technology that has facilitated changes to the media landscape and consumers' media consumption, according to latest report on the Hong Kong media industry released by Nielsen.

For media consumption, the Nielsen Media Index revealed Hong Kong people have become more connected to the online world in the last three years with increased internet penetration from 43 percent to 51 percent since 2004. TV viewing is the dominant media among Hong Kong people with pay-TV gaining prominence growing from 17 percent with one pay-TV operator in 1996 to 46 percent and four pay-TV operators today.

In print publications, the total readership of newspapers over the past decade has declined from 82 percent to 75 percent with free dailies taking up four percent of media share in 2006 as more people are now reading more than one newspaper everyday since the launch of the two free dailies in July 2005. Readership of monthly magazines has also gradually risen from 14 percent in 1997 to 18 percent last year.

"People are more information-hungry these days, and turn to additional sources of information, rather than replace one with another as newcomers enter the media space," Vivian Choi, associate director for Nielsen Media, The Nielsen Company said.

Total ad spend from 1997 to 2006 has nearly doubled from $17billion to $49billion, driven by an increase in advertising revenue for print media, TV and outdoor.

While telecommunications brands were heavy advertisers in the late 90s, the banking and finance and FMCG sectors have taken over with HSBC, McDonalds and ParkNShop topping the list as the top 10 biggest advertising spenders in the past 10 years.

Key trends observed in the Hong Kong market over the past decade include a more competitive media landscape changing the media consumption habits of Hong Kong people, the entry and increasing influence of Chinese brands such as Mengniu, Sewame and Vinda, and the increasing importance of pay-TV, free dailies and internet to the advertising markets.

Gazing into the crystal ball, Choi noted that key areas to look out for in the next 10 years of the media industry are online advertising, mobile advertising, digital TV, IPTV and interactive outdoor placements.