Mobile Advertising Dominating in Hong KongVOBlogger
Hong Kong is said to be “one of the most digitally enabled in the world” and “the marketing services capital of Asia”, where a full range of services can be found.
According to a study from SMPC, digital advertising in Hong Kong is now dominating the overall advertising market and is growing at an annual 10 per cent. The adspend increased by 4.5% in 2017 to HK$41.9 billion with mobile media showing the fastest growth. It is forecasted that mobile internet advertising will continuously grow and dominate internet advertising spend.
Given the statistics above, traditional advertising, such as newspapers, magazines, and traditional TV, are likely to generate less advertising and consumer spending and that will be struggling as digital advertising continues to grow. Most notably, ATV, known as Hong Kong’s oldest TV station, closed for good in April 2016, as funding dried up after years of losses.
That means consumers in Hong Kong are increasingly digital. However, Hong Kong has one of the world’s highest mobile phone penetration rates which indicates that there are higher number of mobile users than any other device.
Cecilia Yau, PwC’s head of Hong Kong entertainment and media sector stated that 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.
Now that most of us are officially mobile-first internet users, it’s time for brands to invest more in mobile advertising.
But what is mobile advertising?
Mobile advertising is a type of advertising that appears on mobile devices such as smart phones and tablets that have wireless connections. Mobile technology is more common, and smarter, than ever before. People are using their mobile devices for much more than making calls and texting.
So, what’s all the buzz around mobile? Mobile devices provide users the ability to communicate with one another and access media while on the go.
Many of us still think mobile ads consist of flashy, annoying banners on mobile devices that only generate accidental clicks. But in reality, mobile ads have significantly progressed when it comes to quality.
Globally, the rise of mobile internet advertising is perhaps the biggest trend in internet advertising in the next five years as the industry continues to expand. There is no doubt that mobile is a big thing today! To remain on the cutting edge of mobile advertising requires a different strategy.
What are the advantages of mobile advertising?
- Access to a wider reach
Hong Kong has one of the world’s highest mobile phone penetration rates and these days a lot of people use mobile phones to browse the internet. Did you know some people don’t use desktops and laptops any longer? Yes, that’s true! Most people nowadays use their mobile devices to search all kinds of information via the Internet including products, services, restaurants, pubs, hotels, tourist spots and more. This means that more customers have access to mobile ads and businesses are capable of reaching more potential customers regardless of where they are compared to any other devices. If you aren’t marketing on mobile, you’re not reaching these potential customers at all.
As compared to non-digital advertising such as radio, TV and print ads, mobile advertising is highly cost-effective to market products and services. It requires no additional charges for printing ads and can actively reach a highly targeted audience while getting direct communication with the people who matter most to your brand. Thus, it proves to be a more effective medium of increasing sales. These ads speak for themselves in the user’s hand!
- Provide instant results
For most people, mobile phone is the first thing they grab in the morning and always carry it everywhere they go and use them to communicate and access the Internet. That means mobile phone is already a part of our daily activities. It is always on and present with us unlike laptops and desktops. Thus, businesses can send time sensitive messages, such as special events and notifications and consumers can receive messages anytime and read them whenever they like. User response can also be tracked almost instantaneously.
- Promote more personal relationship
There is no other device that is as personal (everybody has their own phone), as pervasive (is with you all of the time), and provides the opportunity for proximity.
Modern consumers are attached to their mobile devices as they serve as an individual accessory that they can carry with them at all time. Mobile advertising therefore can sometimes be perceived as accustomed, and friendlier to end users.
Mobile advertising provides a quick response from the users once they have seen your ad and interested to interact with it. This helps the advertisers to tailor mobile advertising messages according to the expectations of mobile users. Eventually, they get to know the customer better which helps in increased business and promote personal relationship with them. Building better relationships with customers helps you get repeat business.
Keep in mind, customers are likely to pay more attention to an advertisement that is promoted on the mobile platform than any other platform.
- Exact targeting
Mobile carriers have customer data and location information potentially available for targeting the right audience for your business which can be very helpful especially for local advertisers.
Why businesses in Hong Kong should use mobile advertising?
Today, mobile marketing is universal and is here to stay. It takes many forms and applies to all kinds of businesses and marketers. So, it’s vital to include the right mobile strategy in your marketing mix to stay afloat in the huge digital market. Mobile advertising provides a wide range of benefits to your business. Unlike other marketing platforms, mobile advertising provides the benefits of wider reach, cost efficiency, instant results, exact targeting and most importantly – customer intimacy.
Since people are turning to their mobiles to access the Internet and to consume more content than ever, businesses should understand how they can use mobile to tell stories and connect with consumers.
If done right, marketing through mobile devices can be a powerful tool to get your message straight into people’s hands who are most likely to respond to it because they best fit the demographics and interests of your prospective customer.