Survey: Over 55% of HK marketers mull increasing AI investment despite economic downturn

Despite economic uncertainty leading 42% of marketers to cut ad spend, over half of the Hong Kong marketers plan to increase their investment in AI for creative generation, targeting, and automation, a survey finds. 

The HK2A Advertising Spending Projections 2025, conducted by NielsenIQ (NIQ), was released based on 70 self-administered questionnaires from key advertisers in Hong Kong, revealing how marketers are responding to economic headwinds with sharper focus, smarter tools, and strategic agility. 

According to the survey, 67% of marketers anticipate a downturn in Hong Kong’s economy, a sentiment that aligns closely with the global average of 61%. Marketers are more positive towards pharmaceutical and healthcare, eCommerce and travel and tourism services.  

With growing economic uncertainty, ad budgets are facing increased scrutiny. 42% of marketers plan to reduce overall ad spend and marketers are shifting their budget allocations to digital, driven by high screen time and cost-efficiency. However, 19% are increasing budgets, especially in industries such as FMCG packaged food and tourism. 

Digital advertising now represents 64% of total ad spend and is expected to grow further in the next 12 months, reaching 67%. Marketers are recalibrating their digital strategies, with a notable pivot toward content collaboration—rising from 21% to 24%—as the leading investment channel—to foster authentic engagement and expand reach, while paid social remains a strong priority despite a slight dip from 20% to 19%. 

In addition to mainstream platforms such as Facebook, YouTube, and Instagram, Xiaohongshu and Threads are emerging as high-potential channels among younger audiences, particularly for Threads. Threads’ content-first model offers low-cost, high-impact visibility, making it attractive for marketers. 

The survey found that 54% of marketers would invest more in Xiaohongshu in the next 12 months, while 33% and 16% would invest more in Instagram and Threads, respectively.  

While digital continues to dominate, non-digital formats such as free-to-air TV (18%) and outdoor (20%) advertising remain vital for mass awareness and memorability. Some marketers (9%) are even increasing investment in these channels, recognising their strength in high traffic environments and rapid reach. 

Marketers are diversifying their outdoor advertising to increase their reach, with MTR advertising (76%) remaining as the most popular placement medium, while 71% plan to invest in outdoor billboards, followed by bus and tram bodies (61%) and bus shelter panels (53%).  

With the prevalence of AI, over 55% of marketers plan to increase investment in AI, using it for creative generation, targeting, and automation. AI has emerged as a strategic enabler for efficiency, personalisation, and speed-to-market. 

Overall, the advertising market in 2025 is showing a clear shift toward precision investment and agile adaptation in the face of economic challenges. Advertisers are doubling down on digital—particularly content collaboration and emerging platforms—while traditional media continues to demonstrate value in driving mass reach.  

At the same time, AI is widely regarded as a critical driver for the future, enabling marketers to balance precision, efficiency, and flexibility, and to unlock new avenues for growth. 

“Rather than pulling back, marketers are recalibrating their approach. The shift is toward precision, adaptability, and platforms that resonate with evolving consumer behaviours,” said Mandy Tam, managing director of NielsenIQ Hong Kong. 

"The survey provides a timely measure of advertising spending in Hong Kong and tracks developments across key channels. The results offer advertisers and industry stakeholders a basis for understanding current trends and for making informed decisions," said Michelle Lam, chairman of HK2A.

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