Market Insights Advertising & Media Advertising

Social Media Advertising - Hong Kong

Hong Kong

In Hong Kong, ad spending in the Social Media Advertising market is projected to reach US$0.58bn in 2024.
The ad spending in this region is expected to exhibit an annual growth rate (CAGR 2024-2029) of 10.83%, leading to a projected market volume of US$0.97bn by 2029.
When compared globally, the majority of ad spending will be generated China, with an anticipated amount of US$84,650.00m in 2024.
Within the Social Media Advertising market, it is projected that 54% of total ad spending in Hong Kong will be generated through mobile platforms by 2029.
Furthermore, the number of users in the Social Media Advertising market in Hong Kong is expected to reach 7,174.0k users by 2029.
In Hong Kong, the rise of digital connectivity is driving brands to increasingly prioritize personalized social media advertising strategies to engage a tech-savvy consumer base.

Key regions: United States, France, Japan, Europe, Germany

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Analyst Opinion

The Social Media Advertising market in Hong Kong is experiencing significant growth due to changing customer preferences and the local special circumstances.

Customer preferences: Customers in Hong Kong have increasingly turned to social media platforms for various purposes, including entertainment, communication, and information. With the rise of social media influencers and the popularity of user-generated content, consumers are becoming more receptive to advertisements on these platforms. Additionally, the convenience and personalization offered by social media advertising have made it an attractive option for businesses to reach their target audience.

Trends in the market: One of the key trends in the Social Media Advertising market in Hong Kong is the increasing use of video content. Video advertisements on platforms such as Facebook, Instagram, and YouTube have proven to be highly engaging and effective in capturing the attention of users. As a result, businesses are investing more in creating compelling video ads to promote their products and services. Another trend is the growing importance of influencer marketing. Influencers, who have a large and loyal following on social media, are seen as trusted sources of information and recommendations. Businesses are leveraging this by partnering with influencers to promote their brands and products. This form of advertising allows companies to tap into the influencer's audience and benefit from their credibility and influence.

Local special circumstances: Hong Kong's unique position as a global financial hub and its high internet penetration rate contribute to the growth of the Social Media Advertising market. The city's cosmopolitan nature attracts businesses from various industries, making it a highly competitive market. To stay ahead, companies are increasingly turning to social media advertising to differentiate themselves and reach their target customers. Furthermore, Hong Kong has a highly connected population, with a large percentage of the population actively using social media platforms. This presents a significant opportunity for businesses to engage with their target audience and drive brand awareness and sales through social media advertising.

Underlying macroeconomic factors: The Social Media Advertising market in Hong Kong is also influenced by underlying macroeconomic factors. Hong Kong's strong economy and high consumer spending power provide a favorable environment for businesses to invest in advertising. Additionally, the city's proximity to China, the world's largest e-commerce market, opens up opportunities for businesses to target Chinese consumers through social media advertising. In conclusion, the Social Media Advertising market in Hong Kong is experiencing growth due to changing customer preferences, such as the increasing use of video content and influencer marketing. The local special circumstances, including Hong Kong's status as a global financial hub and high internet penetration rate, further contribute to the market's development. Moreover, underlying macroeconomic factors, such as the strong economy and high consumer spending power, provide a favorable environment for businesses to invest in social media advertising.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on social media advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers social media advertising generated by social networks or business networks such as Facebook, Tiktok, Instragram, Pinterest, and LinkedIn.

Modeling approach:

A combined top-down and bottom-up approach determines the market size. Starting with the top-down approach, we calculate global social media advertising by aggregating revenues from key players (Meta Platforms (Facebook and Instagram), ByteDance (Tiktok and Douyin), Twitter, Snapchat, and Microsoft (LinkedIn)). Followed by the bottom-up approach, we justify global, country, and region results using web traffic and the number of app downloads. Lastly, we distribute the results to each country individually with relevant indicators such as GDP, internet users, social media users, and digital consumer spending by country.

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.