Digital Marketing
“ From a marketer’s perspective, we felt it necessary to have
a presence in Hong Kong because Hong Kong is a hub for
headquarters – more than 2,400 global companies have
set up their regional headquarters here. Having an office
here and being able to deliver our services close to these
companies is important.”
Olivier Legrand, Head of Marketing Solutions, Asia Pacific & Japan
LinkedIn
The robust growth of the internet and mobile economy in the
region has led to an upsurge in demand for digital advertising and
marketing services. Global adspend grew at 5.5 percent in 2014 to
US$537 billion, with internet advertising accounting for around
one-quarter (US $121 billion). Over 50 percent of companies plan
to increase their digital marketing budget in 2015 (Gartner). Asia
Pacific accounted for 28.6 percent of global digital adspend in 2014
(ZenithOptimedia). By 2019, digital will be the largest medium for
advertising in China (Media Partners Asia). In 2015, eCommerce
transactions in China are projected to hit USD 540 billion. By
2020, China’s eCommerce market is expected to be larger than
those of the US, UK, Japan, Germany and France combined
(KPMG). Strategically located in the heart of Asia, Hong Kong is the
ideal gateway to servicing key markets in this region.
Hong Kong Advantages and Opportunities
Ideal Gateway to Robust Growth in Asia Pacific
• By 2016, Asia Pacific is expected to account for over one third of
all global mobile ad spend, reaching US$9.5 billion (Gartner)
domestic product by 2018, much higher than in other Asian
economies (PWC). 84 percent of marketers in Hong Kong will
increase their digital marketing budget in 2015 (Nielsen)
• Asia Pacific is the 2nd largest digital advertising market in
the world in 2014 with China being the Asia Pacific’s leader in
digital advertising, accounting for over 46 percent of all regional
expenditures, a trend that will continue through 2018 (eMarketer)
• Social media will continue to be the third largest advertising
platform in 2015, taking 8 percent of advertising spend ahead
of magazines (7 percent), display (7 percent) and mobile (6
percent) (Nielsen)
• There were over 649 million internet users in China in 2014, with
the proportion of users who went online with a mobile device
continued to rise. The country’s internet penetration rate is only
47.9 percent (China Internet Network Information Center). China
Singles’ Day shopping spree on 11 November 2014 set world
record in online sales at US$9.3 billion, reaching shoppers in 200
countries
• Hong Kong is ahead of the curve in mobile marketing
adoption, marketers are more ready to adopt mobile channels
compared to Australia and Singapore (Experian-The Digitized
Pocket)
• In 2014, nearly 430 million people in China used a mobile search
engine, which was 77.1 percent of all mobile internet users in
the country. (China Internet Network Information Center) Total
digital search ad spending in China is forecast to reach $14.79
billion in 2015, up from $11.14 billion in 2014. Total mobile internet
ad spending is expected to rise 90 percent in 2015 in China
(eMarketer)
• Geographically Hong Kong serves as an ideal regional hub to
access the booming digital advertising market in Asia Pacific and
China
A Vibrant Market with Strong Demand
• Hong Kong has 87 percent smartphone penetration rate, 96
percent mobile internet usage rate, which are highest in Asia
Pacific (Nielsen, Google & Ipsos)
• In Hong Kong, advertising spending will be 1.07 percent of gross
• Hong Kong has a highly developed consumer and financial
market, which offers an excellent testing ground for marketing
concepts and techniques
Excellent ICT Infrastructure
• 239 percent mobile penetration rate and household
broadband penetration rate >83 percent, representing one of
the highest penetration rates in the world
• The world’s fastest speed for internet access (Akamai
Technologies, 2014)
• 4G services utilising Long Term Evolution (LTE) technology
are widely deployed in Hong Kong. Mobile service subscribers
can enjoy data downlink speeds of up to 300 Mbps which
enables fast and excellent download quality for videostreaming and web browsing on mobile devices
• Over 30,000 public wi-fi access points all around the city
• World-class connectivity provides an excellent online and
mobile platform for digital marketers
Digital Marketing
Canadian Digital
Marketing Firm
Going from Strength
to Strength
“ People are the key to our
success in Asia Pacific and there
is no other place like Hong Kong
in terms of talent pool .”
Jeff Kwok
Director of Business Development, Asia
Neverblue & Pulse Mobile
Neverblue & Pulse Mobile set up its regional head office in Hong Kong to capture
explosive growth in Asia Pacific
Headquartered in Victoria, British Columbia, Canada, Neverblue
& Pulse Mobile are GlobalWide Media businesses. GlobalWide
is a leading digital marketing company group based in Los
Angeles, specialising in generating online sales and transactions
for clients from various industries, including travel and online
retail. The company drives eCommerce transactions by
harnessing the internet’s top web and mobile inventory via a full
spectrum of online marketing channels. Its clients are mostly
large brands with a global presence.
“Asia is the largest and fastest growing digital market in the
world. Our Hong Kong office positions us to meet and exceed
our client demand and deepen our existing Asian relationships,”
Jeff Kwok, Director of Business Development, Asia, Neverblue &
Pulse Mobile, said.
“Hong Kong is at the heart of Asia, within roughly three hours’
flying time to other Asian cities. With more than seven million
inhabitants, the city is a market in itself and has attracted
companies from all over the world to set up their regional offices
here. Hong Kong is famous as a fast-paced business environment
and for digital marketing; we need this speed and efficiency to
grow our market,” he added.
With more than 10 years’ of experience in digital marketing,
Neverblue & Pulse Mobile’s new strategy is to focus on
eCommerce and mobile commerce transactions for clients.
Alibaba, Taobao and Expedia Group are some of the company’s
key clients. To cope with business expansion and increase
operation efficiency, the staff size has grown from two to 10
since its establishment in Hong Kong.
Neverblue & Pulse Mobile’s business model is based on cost
per acquisition, i.e. the advertiser only pays when an advert
generates a sale or creates a new user. This “get before you
Original date of publication: May 2015
pay” concept enables advertisers to minimise overheads and
maximise returns.
Mobile Growth
Kwok is particularly impressed with the growth of mobile
devices in the city. “Hong Kong people are spending more
time on their mobile phones than personal computers, partly
because of the limited space at home, and partly because they
like to shop and dine out, which increases the demand for
mobile internet,” Kwok said.
Kwok attributed the company’s rapid growth to a unique vision,
a clear strategy to support that vision, the commitment to longterm success, and the right talent to support the operations.
“People are the key to our success in Asia Pacific and there is no
other place like Hong Kong in terms of talent pool,” he said.
Neverblue & Pulse Mobile found InvestHK’s support very
helpful, ranging from introductions to potential business
partners in the industry to practical issues such as visa
applications.
Neverblue & Pulse Mobile
• Headquartered in Victoria, Canada
• Has 10 years’ of experience in digital marketing
www.neverblue.com
www.pulsemobile.com
Digital Marketing
Mastering
Big Data
Data agency Fifty-five
is accelerating its global
expansion with its launch
in Hong Kong
“ Hong Kong is our first step
to Asia. It’s where most of
our clients are based and it
is a fast-growing market.”
Cedric Delzenne, Programme Manager
Head of Hong Kong office
Fifty-five
Fifty-five is a data agency which helps advertisers leverage their
data to increase business performance and adopt a smarter
marketing approach. It helps business collect, enrich and
activate their data to find new customers, foster engagement,
increase conversion, and drive sales across online and offline
channels. Clients are mainly from the fashion, luxury, hospitality
and retail industries.
“We’ve considered a couple of options and have eventually
chosen to set up in Hong Kong as it is our first step to Asia.
It’s where most of our clients are based and is a fast-growing
market,” Cedric Delzenne, Programme Manager, Head of Hong
Kong office, said.
Big data now stands at the crossroads of many company’s IT,
advertising, marketing and eCommerce activities. One of Fiftyfive’s goals is to help clients increase customers’ online purchase
through reliable data. “Instead of being driven by intuition, a
company’s decision should be fact-based,” Delzenne said.
Fifty-five is a certified “Jeune Entreprise Innovante” (Young
Innovative Company) and is supported by Bpifrance, the French
agency for innovation and SME development. Together with
about 2,000 selected startups, Fifty-five is a member of the
Bpifrance Excellence Network.
Delzenne attributed this success to a very selective recruitment
process, and giving employees the time and support to be
innovative. “We encourage our employees to be at the forefront
of innovation for our clients. Innovation is at the core of
everything we do,” he said.
Original date of publication: May 2015
He moved to Hong Kong five years ago. “The longer I stay,
the more I love this city. Hong Kong is the only place I know
where one can work hard but still have a balanced way of
living. It is very easy to make connections and is a great city for
entrepreneurs and startups,” he said.
Delzenne has also witnessed a big improvement in how
innovation is supported by the Hong Kong SAR Government.
He found InvestHK’s StartmeupHK Venture Programme
phenomenal and noted the number of high profile international
speakers being attracted to events in the city. He also
appreciated the department’s support in the setting up process,
especially in providing market information, publicity support
and connections to potential partners.
Fifty-five
• Founded in France in 2010
• Offices in Paris, London and Hong Kong
www.fifty-five.com
Digital Marketing
“You must be committed to what you do.
There are always good times and bad
times and you must have the courage
and strength to keep things going
when something knocks you down.
Specifically for startups in the creative
industries, one must strive to deliver the
best project and as original as possible.
Do not follow, but lead.”
João Seabra, Partner and Executive Creative Director
Jump Willy
Having gone through the process of starting a business from
scratch, Seabra’s motto is never give up. Founded in 2007 in
Porto, Portugal, Jump Willy is a creative studio with a multidisciplinary team which develops, conceptualises, and
produces custom made content in all forms of digital media
for advertisements, corporate videos, branded entertainment
and animation TV series. It quickly expanded to London, Los
Angeles, and now Hong Kong, working with dozens of brands
around the world.
Useful Links
Create Hong Kong
www.createhk.gov.hk
The Association of Accredited
Advertising Agencies of Hong Kong
Hong Kong Institute of Marketing
www.hkim.org.hk
www.aaaa.com.hk
Cyberport
www.cyberport.hk
Hong Kong Association of Interactive
Marketing
Digital + Direct Marketing Association
Asia
www.hkaim.org
www.ddma.asia
Hong Kong Innovation & Technology
Fund
HK Advertisers Association
www.itf.gov.hk
www.hk2a.com
Hong Kong Science and Technology
Parks Corporation
www.hkstp.org
Hong Kong Wireless Technology
Industry Association
www.hkwtia.org
SME Funding Schemes
www.smefund.tid.gov.hk
Contact
Doris Fong
Head of Creative Industries
25/F, Fairmont House, 8 Cotton Tree Drive,
Central, Hong Kong
Tel: (852) 3107 1011
Fax: (852) 3107 9009
Email: [email protected]
InvestHK is the department of the Hong Kong Special Administrative Region (HKSAR) Government
responsible for Foreign Direct Investment, supporting overseas and Mainland businesses to set up and
expand in Hong Kong. We partner with clients on a long-term basis and are available at any stage of
their business development process.
©Copyright Invest Hong Kong, May 2015. All rights reserved.
25/F, Fairmont House,
8 Cotton Tree Drive, Central, Hong Kong
Tel: (852) 3107 1000
Email: [email protected]
www.investhk.gov.hk
Digital Marketing
LinkedIn Expands
Hong Kong Operations
Two years after setting up in Hong Kong,
LinkedIn has moved to a bigger and more
prominent office, signifying the firm’s
commitment to the city
“ People live here, operate and
develop their business here, meet
their partners and potential clients
from this part of the world. We felt
it’s the natural place for us.”
Olivier Legrand, Senior Director, Marketing Solutions
LinkedIn APAC & Japan
LinkedIn, the largest global online professional network, has
nearly doubled its global revenue to US$473.2 million in the
first quarter of 2014 than the same period in 2013. In 2012,
it established an office in Hong Kong to develop North Asia
business. Since then, Hong Kong members has doubled to
900,000. In 2014, two years after its opening, LinkedIn Hong Kong
has expanded and moved to a 10,000 square foot office at Hysan
Place, Causeway Bay, with more than 50 employees.
“We crossed the 50-million member mark in Asia in February
2014,” Olivier Legrand, Senior Director, Marketing Solutions,
LinkedIn APAC & Japan said. “Hong Kong is a strategic growth
market in Asia Pacific to us. The city has the highest growth
through mobile and is among a few countries in the region that is
leading the mobile moment.”
According to Legrand, more than 50 percent of traffic on LinkedIn
comes from mobile devices as compared to desktop. The Hong
Kong office has different functions, including LinkedIn Marketing
Solutions and Talent Solutions. Serving clients and members
across North Asia, LinkedIn believes in a “member first” approach.
They are mainly involved in a diverse range of industries,
especially in financial services, IT services, higher education,
telecommunications, and marketing and advertising sectors.
Asia’s Business Hub to Connect to Professionals
“From a marketer’s perspective, we felt it necessary to have
a presence in Hong Kong because Hong Kong is a hub for
headquarters - more than 2,400 global companies have set up
their regional headquarters here,” Legrand said. “Having an office
here and being able to deliver our services close to these companies
is important.”
Other factors that were equally attractive included Hong Kong’s
strategic location in the heart of Asia. “It is located very close to other
places that are important to us like Taiwan, Japan and Korea. So we
set up an operation here to be responsible for North Asia,” he said.
“There’s a great connection to our mission statement of connecting
the world’s professionals, making them more productive and
successful. People live here, operate and develop their business
here, meet their partners and potential clients from this part of the
world. We felt it’s the natural place for us,” he added.
Strong Business Uptake
LinkedIn saw strong uptake of its solutions, especially Marketing
Solutions and Talent Solutions, and a lot of interest from marketers.
Cathay Pacific is a very successful client case as they used LinkedIn
to increase brand awareness among people who travelled business
class between the US and Asia two years ago.
Legrand found the setting up process efficient. “When we decided
to open the Hong Kong office, our finance director leveraged
InvestHK’s support. We continue to be very pleased with our choice
to be in Hong Kong to develop our business in this part of the world,”
he concluded.
LinkedIn
• Established in 2003
• Professional social networking with more than 300
million members worldwide
• Supports 23 local languages, including eight Asian
languages
• Employs more than 5,400 staff worldwide
www.linkedin.com
investhk.gov.hk
Original date of publication: July 2014
© Copyright Invest Hong Kong, May 2015. All rights reserved.
Digital Marketing
More Face for
Hong Kong
The opening of Facebook’s new office
in Hong Kong heralds an exciting
journey ahead
“ With a mobile penetration rate as
high as 238 percent and the fact
that 83 percent of homes in Hong
Kong have high-speed internet,
social media like Facebook would
be one of the best and easiest ways
to capture new customers.”
Jayne Leung, Head of Greater China
Facebook
According to Facebook, more than half of Hong Kong’s
population (4.4 million people) use the social network and
spend 13 minutes on average each time they log on.
time on Facebook, while spending 15 percent less time reading
newspapers and watching television, and 21 percent less time
browsing magazines.
“Facebook is a natural fit to the mobile platform. With a mobile
penetration rate as high as 238 percent and the fact that 83
percent of homes in Hong Kong have high-speed internet, social
media like Facebook would be one of the best and easiest ways
to capture new customers,” Jayne Leung, Head of Greater China,
Facebook, said.
According to Leung, Hong Kong users particularly like watching
or posting videos on Facebook and this would be a potential
avenue for companies seeking to raise their profile in the city.
Personalised Marketing
Today, advertisers have a plethora of choice when it comes
to media options to reach their target audiences. Facebook
is a platform for brands and it aims to make their marketing
personal. It offers a range of tools for marketers to reach, target,
optimise, measure and scale efforts. This makes it possible to
maximise brand awareness at each consumer touch point, drive
and meet conversion goals through multiple ad placements
such as news feed and mobile news feed ads and other formats,
and reach the most relevant target audience.
The sales and marketing team in Hong Kong office is structured
by key verticals which have high growth potential, e.g. FMCG,
retail, mobile technology, financial services and travel. “Our
objective is to personalise marketing - the Facebook you see is
different from the Facebook I see as we have different profiles
and interests. This is our unique marketing edge,” Leung said.
According to a survey commissioned by Facebook and
conducted by market researcher TNS in January 2014, Facebook
outranks popular messaging applications and is the most
favoured digital platform in Hong Kong.
With advertising as the major income stream, Facebook Hong
Kong will actively promote to brands, SMEs and advertising
agencies alike on how to use this social media site to grow
their business. Facebook is also helping Mainland Chinese
companies to make use of social media to promote their brands
internationally.
“The whole idea of investing in this new Facebook office
space stems from the fact that in Hong Kong, there is ample
opportunity to further expand our business, especially in view
of the very positive market response since we launched in 2011.
The majority of our team handle sales and marketing support to
better serve our clients, including multinational corporations,
small and medium enterprises, and advertising agencies, etc.
Looking ahead, we plan to recruit additional staff,” Leung said.
Facebook
• 1.32 billion monthly active users as of 30 June 2014
• 7,185 employees as of 30 June 2014
www.facebook.com
The survey also found that traditional media made less of a
mark, with respondents planning to spend eight percent more
investhk.gov.hk
Original date of publication: November 2014
© Copyright Invest Hong Kong, May 2015. All rights reserved.