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

Traditional Out-of-Home Advertising - Hong Kong

Hong Kong

In Hong Kong, the ad spending in the Traditional Out-of-Home Advertising market is forecasted to reach US$195.40m in 2024.
The market is expected to demonstrate an annual growth rate (CAGR 2024-2029) of -1.68%, leading to a projected market volume of US$179.50m by 2029.
The average ad spending per capita in the Traditional Out-of-Home Advertising market is estimated to be US$26.07 in 2024.
In Hong Kong, the demand for Traditional Out-of-Home Advertising is steadily rising, reflecting a shift towards impactful offline marketing strategies in the competitive market.

Key regions: Germany, Europe, Asia, France, China

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Analyst Opinion

The Traditional Out-of-Home Advertising market in Hong Kong has been experiencing significant growth in recent years.

Customer preferences: Customers in Hong Kong have shown a strong preference for outdoor advertising as a means of capturing their attention. With the city's bustling streets and high population density, out-of-home advertising offers a unique opportunity for brands to reach a large and diverse audience. Additionally, Hong Kong residents are known for their active lifestyle and frequent use of public transportation, making outdoor advertising an effective way to reach them while they are on the move.

Trends in the market: One of the key trends in the Traditional Out-of-Home Advertising market in Hong Kong is the increasing use of digital signage. Traditional static billboards are being replaced by dynamic and interactive digital displays, allowing advertisers to deliver more engaging and targeted messages. This shift towards digital signage is driven by advancements in technology and the increasing demand for more personalized and interactive advertising experiences. Another trend in the market is the integration of mobile advertising with out-of-home advertising. With the widespread use of smartphones in Hong Kong, advertisers are leveraging mobile devices to enhance the effectiveness of their outdoor campaigns. QR codes, NFC tags, and location-based targeting are being used to connect with consumers on their mobile devices and drive them to take action.

Local special circumstances: Hong Kong's unique urban landscape presents both opportunities and challenges for the Traditional Out-of-Home Advertising market. The city's high-rise buildings and densely populated areas provide ample space for outdoor advertising, but also create a competitive environment where brands need to find innovative ways to stand out. This has led to the development of creative and eye-catching advertising formats, such as building wraps and 3D installations, to capture the attention of passersby.

Underlying macroeconomic factors: The growth of the Traditional Out-of-Home Advertising market in Hong Kong can be attributed to several macroeconomic factors. The city's strong economy and high consumer spending power have created a favorable environment for advertisers. Additionally, Hong Kong's position as a global financial hub and tourist destination attracts a large number of international brands, who see outdoor advertising as an effective way to reach both local and international audiences. In conclusion, the Traditional Out-of-Home Advertising market in Hong Kong is thriving due to customer preferences for outdoor advertising, the adoption of digital signage and mobile integration, the unique local circumstances of the city, and the underlying macroeconomic factors. As technology continues to advance and consumer behavior evolves, it will be interesting to see how the market further develops and adapts to meet the changing needs of advertisers and consumers.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on traditional out-of-home advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers offline out-of-home advertisements such as billboards, street furniture, transit and transport displays, and 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.