1.
HKDMA / PwC Market Study highlights
& HKDMA echo actions
September, 2017

2.
Digital marketing in Hong Kong:
Gathering pace after a slow start
PwC / Digital Marketing Association of Hong Kong
September, 2017

3.
Global E&M Outlook 2017-2021
#PwCOutlook
3
Today’s agenda
Current state of digital advertising in Hong Kong
Circumstances and challenges
Recommendation
Open discussions

4.
Global E&M Outlook 2017-20214
Current state of
digital advertising in Hong
Kong

5.
Global E&M Outlook 2017-2021
#PwCOutlook
Hong Kong is one of the most digitally enabled cities in the
world; 10% CAGR is expected from digital ad spend
Mobile penetration
Broadband penetration
with an average peak
connection speed of
129.5 Mbps (one of the
highest in the world)
230%
92%
5
3.3%
10.3%
-0.9%
Total E&M
Digital
Non-Digital
HK advertising CAGR 2016-21

6.
Global E&M Outlook 2017-2021
#PwCOutlook
Despite the double digit growth, digital share of ad spend
still lags behind global average and some Asian neighbours
6
Digital’s share of total advertising wallet

7.
Global E&M Outlook 2017-2021
#PwCOutlook
2014/15 was the inflection point for digital advertising:
Growth of overall adspend plunged…
7
Hong Kong advertising revenues and YoY growth

8.
Global E&M Outlook 2017-2021
#PwCOutlook
… while internet advertising grew, driven by mobile
8
Hong Kong internet advertising revenues and YoY growth by mobile and wired
(in US$’million)

9.
Global E&M Outlook 2017-2021
#PwCOutlook
Share of TV adspend was overtaken by Internet during 2014
for the first time
9
Advertising share by medium

10.
Global E&M Outlook 2017-202110
Circumstances and
challenges

11.
Global E&M Outlook 2017-2021
#PwCOutlook
Challenges facing Hong Kong
11
1. Geographically
concentrated market
has limited the need
for digital ad
3. Marketers are
confused with
terminologies and
new developments
2. A culture of
“being obedient to
your boss”
Are we, as industry participants, making the industry
unnecessarily complicated and driving away potential
talents who want to join the industry, or advertisers
who want to engage in digital marketing?

12.
Global E&M Outlook 2017-2021
#PwCOutlook
Challenges facing Hong Kong (Continued)
12
4. Lack of standardised
metrics to measure the
effectiveness and hence
value of digital ad
5. Digital is still
considered by many as a
separate and distinct
form of marketing media
“The holy grail of marketing is
achieving a common currency
that all media understand and
use.” – Industry Expert
“The thing about digital that many companies
don’t get is that you can’t look at different
marketing channels in isolation, but you must look
at the whole customer journey, where their
touchpoints are, and market based on their needs.”
– Industry expert

13.
Global E&M Outlook 2017-2021
#PwCOutlook
Challenges facing Hong Kong (Continued)
13
7. Shortage of digital
marketing talent to move
the industry forward
6. Programmatic media
buying is still at an early
stage in Hong Kong. 8. Remuneration schemes for
agencies are still reforming to
encourage optimal media
spending across online/offline
channels

14.
Global E&M Outlook 2017-202114
Recommendations

15.
Global E&M Outlook 2017-2021
#PwCOutlook
What does success look like for Hong Kong’s digital
marketing industry?
15
Success should be defined by the industry’s ability to
deploy an optimal mix of digital versus
traditional media for each marketing campaign
that places the individual consumer in the heart of
each individual campaign and that can drive optimal
value and RoI for the advertiser.

16.
Global E&M Outlook 2017-2021
#PwCOutlook
Recommendations for advertisers and marketers:
16
1. Embrace change and
technology in the
organisation
2. Have ‘digital’ talents
work alongside
‘traditional’ talents in
transforming the
organisation
3. Develop a ‘learning’
culture within the
organisation
4. Invest in data
accumulation and
analytic tools

17.
Global E&M Outlook 2017-2021
#PwCOutlook
Recommendations for the agencies:
17
1. Continuously
transform and
encourage agency staff
to be digitally ‘aware’
and risk being irrelevant
2. Review media
remuneration structure
3. Invest in data
management platforms and
analytic tools to develop
optimal data-driven and
customer-centric solutions
for client
4. Be open to
partnering and
collaborating with ad
tech companies and
other organisations

18.
Global E&M Outlook 2017-2021
#PwCOutlook
Recommendations for platforms, media owners and
exchanges:
18
1. Simplify industry
jargon
2. Invest in continuously
upgrading programmatic
solutions
3. Leverage big data and
analytics to better understand
customers and guide content
acquisition and production
strategy
4. Invest in data
accumulation and
analytic tools

19.
Global E&M Outlook 2017-2021
#PwCOutlook
Recommendations for industry associations /
organisations:
19
1. Continue to provide
and deliver business
and technical training
for the industry
2. Invest in and
promote the adoption of
industry standards on
measurement
3. Invest in making the
industry an attractive
prospect for young and
fresh graduates to join
4. Work closely with
brands/ advertisers to
help them demystify and
clarify confusion with
digital marketing

20.
HKDMA echo actions
Attract Develop Retain talents

21.
Breakfast meetings
Trainings
HKDMA internship
HKDMA Job Board
Sharing @
universities career talks

22.
For more information,
please write to us at info@hkdma.com.hk