Hong Kong’s digital spending to surge to US$5.8b by 2022 as consumers turn to mobile media

Revenue generated from digital sources in Hong Kong such as over the top streaming video and internet advertising, surpassed offline sources for the first time last year, and is forecast to reach US$5.8 billion by 2022, as consumers increasingly use mobile devices to watch streaming videos and read news, according to a PwC study.

Taking into account the city’s digital revenues of US$4.5 billion last year, the segment is expected to grow at a compound annual growth rate (CAGR) of 5.1 per cent between 2018 to 2022.

In contrast, non-digital media, such as newspapers, magazines, and traditional TV, are likely to generate less advertising and consumer spending, down from US$4.3 billion in 2017 to US$4.05 billion in 2022.

“Digital is the trend, ” Cecilia Yau, PwC’s head of Hong Kong entertainment and media sector, said on Wednesday. “Hong Kong’s traditional advertising still generates more revenues than internet advertising, but consumers are turning to digital platforms [to access content], especially mobile devices, which will prompt advertisers to shift their spending.

“Because of Hong Kong’s uniquely dense population, advertisers still see print, TV, out-of-home advertising as a powerful and effective tool to capture mass views in a short duration.”

By 2022, Hong Kong’s internet advertising market will be worth US$732 million, up from US$456 million in 2017.