Market Trends of Hong Kong OOH And DOOH Industry
Ongoing Shift Toward Digital Advertising Expected to Boost Market Growth
- The advent of digitalization and the adoption of programmatic technologies have revolutionized outdoor media, offering sophisticated targeting and measurement tools previously unattainable. Digital out-of-home (OOH) ads seamlessly blend into users' daily routines, presenting brands with a unique opportunity to engage their target audiences unobtrusively.
- The "Hong Kong Enterprise Digitalization Index Survey," released in October 2023 by the HKPC Digital Transformation, unveiled that Hong Kong's overall enterprise digitalization index is at 35.9, marking it as a "Basic" level. This suggests that while Hong Kong enterprises recognize the significance of digitalization, their adoption is still in its early stages.
- Notably, as AI gains traction, 30% of the surveyed enterprises have already integrated AI into their operations. Projections indicate this figure could jump by 20 percentage points, nearing 50% by the following year, underlining the swift mainstream adoption of AI in operational frameworks. Embracing AI can empower the DOOH industry to enhance efficiency, accuracy, and overall effectiveness, leading to more impactful and engaging advertising experiences.
- As the mobile user base expands, integrating mobile devices into DOOH advertising becomes increasingly pivotal. A straightforward method to achieve this integration is by incorporating QR codes. Consumers can scan these codes to access comprehensive information swiftly. This interactive approach not only engages the audience but also enhances personalization, leading to improved conversion rates and brand recall.
Understand The Key Trends Shaping This Market
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Retail and Consumer Goods Sector to Witness Major Growth
- Local businesses in Hong Kong are grappling with heightened competition, a direct result of the retail sector's digital metamorphosis and the proliferation of digital touchpoints for consumer engagement. To distinguish themselves, these businesses are compelled to not just innovate but also fine-tune their digital approaches. As e-commerce gains further ground, brick-and-mortar retailers find themselves increasingly reliant on DOOH strategies. This shift is imperative as they navigate the competitive landscape, not only against online-exclusive enterprises but also in the offline realm.
- In 2023, Hong Kong's total retail sales value, as reported by the Census and Statistics Department, surged to around HKD 406.7 billion (~USD 52.17 billion), marking a significant increase from the approximately HKD 350 billion (~USD 44.90 billiob) recorded in the preceding year.
- According to the Central Intelligence Agency (CIA), in 2023, the urban population of Hong Kong was 100 %. In such a competitive market, it is imperative to stand out. Brands that offer immersive advertising experiences not only grab attention but also spark conversations. This strategy not only forges a distinct brand identity but also showcases the brand as a pioneer in innovation.
- In March 2023, Hivestack, an independent player in programmatic digital out-of-home (DOOH) advertising technology, partnered with Focus Media Hong Kong Limited, a key player in the Hong Kong DOOH landscape. Through this partnership, both local and international advertisers gain privileged entry to Focus Media Hong Kong's extensive array of digital panels and billboards.
