Digital ad spend set to grow by 14% in HK

Digital ad spending in Hong Kong is set to grow by 14% this year to reach US$639 million, according to eMarketer’s forecast.Total media ad spending in Hong Kong will reach US$3 billion in 2017, a growth of 0.5% over last year.Mobile now makes ups almost half (49.2%) of all digital ad spend and continued growth is predicted over the next few years. By 2021, mobile is expected to rise to US$677 million, representing an 80.2% share of digital ad spend.“Traditional media ad spending in Hong Kong—especially among TV and magazine formats—has been under pressure in recent years due to the prolonged slump in the local retail sector, which has severely dampened ad sales,” senior forecasting analyst Shelleen Shum said.“While the retail industry has shown some positive growth in recent months, we remain cautious about a strong recovery in total media ad spending and expect that traditional media will continue to be dragged down by the shift toward digital.”Meanwhile, spending on paid media worldwide will reach US$584.14 billion by the end of this year and approach US$757.44 billion in 2021, eMarketer estimates, driven largely by advertiser investments in mobile formats. Ad spending growth rates will range between 4.9% and 8.3% over the forecast period.North America will continue to be the top ad spending market, with outlays growing 5.2% this year. Growth will be slightly below the worldwide average of 7.0%, mainly because North America is one of the more digitally mature regions in the world. North America will maintain annual growth throughout the forecast period, with a bump 2020, when the next US presidential election and Summer Olympics will take place.Elsewhere in the world, digital ad growth in India and China will spur rapid growth in the Asia-Pacific region, such that the region will surpass North America in total ad spend by 2019.(Photo courtesy: iStock)