Hong Kong online ad spend increases 31 per cent : Nielsen

Asian markets are booming and Hong Kong's consumer confidence is up by 2 points in the second quarter, breaking through the 100-point line for the first time since the region was hit by the global financial tsunami in Q3 of 2008.

The study finds that given the increasing importance of the online platform as a significant marketing tool, the total advertising expenditure online has increased by 31 per cent this year compared to the same period last year.

The overall retail market has seen strong growth in the first five months of the year, with a year-on-year growth of 18 per cent. Fast moving consumer goods (FMCG) still remains stable, indicating that consumers are not increasing their budgets on grocery items or daily necessities.

Discretionary spending continues to be on the rise, particularly on holidays, out-of-home entertainment and new clothes.

Amid a relatively stable stock market in comparison to one year ago, confident Hong Kong consumers are more willing to open up their wallets to invest in stocks and shares (53 per cent) - topping the list globally.

Oliver Rust, MD, Hong Kong, the Nielsen Company, said, "We should not neglect the impact of an influx of tourists, especially those from the Chinese mainland. Sales on jewelry and consumer durables are up by 39 per cent and 29 per cent respectively."

However, Rush warned that "the local economy is relying on mainland tourists too much. The key now will be to understand the local purchasing and consumption patterns to identify and leverage opportunities in the local market."