Market Insights Advertising & Media Advertising Out-of-Home Advertising

Digital Out-of-Home Advertising - Hong Kong

Hong Kong

Ad spending in the Digital Out-of-Home Advertising market in Hong Kong is forecasted to reach US$0.40bn in 2024.
The market is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 6.96%, leading to a projected market volume of US$0.56bn by 2029.
With a projected market volume of US$4,366.00m in 2024, the majority of ad spending is anticipated to originate from China.
The average ad spending per capita in the Digital Out-of-Home Advertising market is estimated to be US$53.39 in 2024.
In Hong Kong, the rise of interactive Digital Out-of-Home Advertising is transforming traditional marketing strategies in the bustling urban landscape.

Key regions: India, France, United States, United Kingdom, China

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Analyst Opinion

The Digital Out-of-Home Advertising market in Hong Kong has experienced significant growth in recent years, driven by changing customer preferences, emerging trends, and local special circumstances.

Customer preferences: Customers in Hong Kong have shown a growing preference for digital out-of-home advertising due to its dynamic and interactive nature. With the rise of smartphone usage and social media, advertisers are increasingly leveraging digital screens to engage with consumers in real-time and create personalized experiences. This shift in preference has led to a surge in demand for digital out-of-home advertising solutions, such as digital billboards, interactive kiosks, and digital signage.

Trends in the market: One of the key trends in the digital out-of-home advertising market in Hong Kong is the adoption of programmatic advertising. Programmatic advertising allows advertisers to automate the buying and selling of ad space, enabling them to target specific audiences and optimize their campaigns in real-time. This trend has gained traction in Hong Kong as advertisers seek more efficient and effective ways to reach their target customers. Another trend in the market is the integration of data analytics and audience measurement tools. Advertisers are increasingly using data-driven insights to understand consumer behavior, measure the effectiveness of their campaigns, and make data-informed decisions. This trend is driven by the availability of advanced analytics tools and the growing importance of ROI measurement in advertising.

Local special circumstances: Hong Kong's dense urban environment and high population density create unique opportunities for digital out-of-home advertising. The city's iconic skyline and bustling streets provide advertisers with a captive audience and a highly visible platform to showcase their brands. Additionally, the city's status as a major international financial hub attracts a diverse range of businesses, making it an attractive market for digital out-of-home advertising.

Underlying macroeconomic factors: Hong Kong's strong economy and high consumer spending power have contributed to the growth of the digital out-of-home advertising market. The city's stable political environment, well-developed infrastructure, and high internet penetration rate create a conducive environment for digital advertising. Furthermore, Hong Kong's strategic location as a gateway to China and other Asian markets makes it an attractive destination for multinational advertisers looking to expand their reach in the region. In conclusion, the digital out-of-home advertising market in Hong Kong is thriving due to evolving customer preferences, emerging trends such as programmatic advertising and data analytics, local special circumstances, and underlying macroeconomic factors. Advertisers in Hong Kong are increasingly leveraging digital screens to engage with consumers in real-time, create personalized experiences, and optimize their campaigns for maximum impact. As the market continues to evolve, it is expected that digital out-of-home advertising will play an increasingly prominent role in the marketing strategies of businesses in Hong Kong.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on digital out-of-home advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers internet-connected out-of-home advertisements such as digital billboards, digital street furniture, digital transit and transportation, and digital place-based media.

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use annual financial reports of the market-leading companies and industry associations, third-party reports, and survey results from our primary research (e.g., Consumer Insights Global Survey) to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as GDP, population, urban population, and internet infrastructure.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market. For instance, the S-curve function is well suited to forecast digital products due to the non-linear growth of technology adoption, whereas exponential trend smoothing (ETS) is more suited for projecting steady growth in traditional advertising markets.

Additional notes:

Data is modeled using current exchange rates. The impacts of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice per year in case market dynamics change.