Market Insights Advertising & Media Advertising TV & Video Advertising

Traditional TV Advertising - Hong Kong

Hong Kong

Ad spending in the Traditional TV Advertising market in Hong Kong is forecasted to reach US$383.50m in 2024.
The ad spending is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of 0.21%, leading to a projected market volume of US$387.50m by 2029.
The average ad spending per TV Viewer in the Traditional TV Advertising market in Hong Kong is estimated to be US$50.48 in 2024.
By 2029, the number of users in the Traditional TV Advertising market in Hong Kong is expected to reach 7.8m users.
Amid the rise of digital marketing, Hong Kong's Traditional TV Advertising market is adapting by integrating online platforms for broader reach and engagement.

Key regions: Germany, Europe, Japan, United Kingdom, Australia

Definition:
Traditional TV Advertising refers to ad spending on moving image formats broadcasted via traditional transmission channels such as terrestrial and digital terrestrial (DTTV, DTT, DTTB) TV, cable TV, satellite TV, and linear TV delivered via Internet Protocol television (IPTV). Terrestrial television uses traditional antennas that transmit analog signals. Analog terrestrial TV has undergone a digital switchover (DSO) to digital terrestrial TV in most parts of the world. For digital terrestrial TV, television broadcasting stations transmit TV content through radio waves to televisions in households in a digital format. Internet Protocol television (IPTV) refers to the delivery of television content via Internet Protocol networks. IPTV is used in subscriber-based telecommunications networks via set-top boxes or other customer-premises equipment (IPTV is included in the cable revenue split here). Traditional TV Advertising covers all ad spending on pay-TV operators and networks as well as free-to-air networks and free-to-air spin-off digital channels from terrestrial network operators. Usually, the distribution of advertising time in television programs is either carried out by the broadcasters themselves or by marketing agencies.

Structure:

Cable TV signals are transmitted through coaxial or fiber-optic cables directly to each household without the need for external antennas.
Satellite TV includes television programming with the use of communication satellites that transmit to satellite dishes. A dedicated satellite receiver (external set-top boxes or built into TV sets) decodes the television program.
Digital Terrestrial Television (DTT), sometimes known as direct-to-terrestrial television, is a type of television reception in which a signal is transmitted directly to a viewer's antenna rather than through a cable or satellite system. As a rule, HDTV signals are available through digital terrestrial television, and this type of television also makes better use of the radio spectrum.

Additional information:
Traditional TV Advertising comprises advertising spending, users, average revenue per user, and user demographic. The market only displays B2B spending and users. Figures are based on Traditional TV Advertising spending and exclude agency commissions, rebates, production costs, and taxes. For more information on the data displayed, use the info button right next to the boxes.

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Analyst Opinion

The Traditional TV Advertising market in Hong Kong has been experiencing significant developments and trends in recent years.

Customer preferences: In Hong Kong, traditional TV advertising continues to be a popular choice among consumers. Despite the rise of digital media and online streaming platforms, many viewers still prefer the experience of watching television and the convenience of accessing a wide range of channels. Traditional TV advertising allows advertisers to reach a large and diverse audience, making it an effective medium for brand promotion and product awareness.

Trends in the market: One of the key trends in the Traditional TV Advertising market in Hong Kong is the increasing focus on targeted advertising. Advertisers are now leveraging data and analytics to identify specific audience segments and deliver personalized advertisements. This trend is driven by the growing demand for more relevant and engaging content, as viewers become increasingly selective about the ads they watch. By tailoring advertisements to specific demographics, advertisers can maximize the impact of their campaigns and improve return on investment. Another trend in the market is the integration of digital technologies into traditional TV advertising. With the rise of smart TVs and connected devices, advertisers now have the opportunity to deliver interactive and immersive advertisements. This includes features such as clickable ads, interactive overlays, and augmented reality experiences. By blending the traditional TV format with digital elements, advertisers can create more engaging and interactive campaigns that capture the attention of viewers.

Local special circumstances: Hong Kong's unique cultural and linguistic landscape presents both challenges and opportunities for traditional TV advertising. The city is known for its multicultural society, with a diverse range of languages spoken by its residents. Advertisers must carefully consider language preferences and cultural nuances when creating their campaigns to ensure they resonate with the target audience. Additionally, Hong Kong's proximity to mainland China provides opportunities for advertisers to reach a wider audience by targeting both local and mainland Chinese viewers.

Underlying macroeconomic factors: The strong economic growth and high consumer spending in Hong Kong have contributed to the development of the Traditional TV Advertising market. The city's stable economy and high standard of living make it an attractive market for advertisers looking to promote their products and services. Additionally, Hong Kong's strategic location as a global financial hub attracts multinational companies, further driving demand for TV advertising. In conclusion, the Traditional TV Advertising market in Hong Kong is evolving to meet the changing preferences and demands of consumers. Advertisers are increasingly adopting targeted advertising strategies and integrating digital technologies to create more personalized and engaging campaigns. The unique cultural and linguistic landscape of Hong Kong presents both challenges and opportunities for advertisers, who must carefully consider local preferences and cultural nuances. The strong macroeconomic factors in the city, including its strong economy and high consumer spending, contribute to the growth and development of the Traditional TV Advertising market in Hong Kong.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on traditional TV advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers non-digital formats such as terrestrial TV, cable TV, satellite TV, and linear TV.

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, media consumption, number of households with television, and consumer spending.

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.