HONG KONG: Digital media revenues in Hong Kong are forecast to grow at a compound annual growth rate (CAGR) of 5.1% over the next four years while non-digital media slowly shrinks, according to a new PwC report.
The consulting firm predicted that, as consumers increasingly turn to their mobile devices to watch OTT videos and read news, digital media revenues would hit US$5.8bn in 2022., up from US$4.3bn in 2017.
Over the same period, non-digital media, including newspapers, magazines, and traditional TV, is projected to slip back from US$4.3bn to US$4.05bn.
“Digital is the trend, ” said Cecilia Yau, PwC’s head of Hong Kong entertainment and media sector, unveiling the local takeaways from the consulting firm’s Global Entertainment & Media Outlook 2018-2022 report.
“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,” she said, in remarks reported by the South China Morning Post.
The report values Hong Kong’s internet advertising market at US$732m in 2022, a 60% increase on the 2017 figure of US$456m – and mobile’s share of that will stand at 49%, up from last year’s figure of 32%.
“Mobile internet advertising will be driven by video-on-demand, live streaming and online shopping, supported by high speed networks and higher video resolution as a result of the upcoming roll-out of 5G technology that will improve user experience,” Yau said.
“Because of Hong Kong’s uniquely dense population,” she added, “advertisers still see print, TV, out-of-home advertising as a powerful and effective tool to capture mass views in a short duration.”
More generally, the report highlighted three imperatives affecting every company in the industry: convergence, connecting with consumers and the need to build trust.
“The story behind the Outlook’s global figures is a near-infinite accumulation of micro-stories, and a dizzying array of different trends, at a territory and segment level,” said Ennèl van Eeden, Global Entertainment & Media Leader, PwC Netherlands.
Sourced from PwC, South China Morning Post; additional content by WARC staff