Why CTV and retail media could transform digital advertising in Hong Kong through 2025

The digital advertising landscape is expected to rapidly evolve this year, offering brands and advertisers promising, data-driven advertising opportunities on the open internet. Among these, connected TV (CTV) and retail media stand out as the two most anticipated and pivotal changes to Hong Kong’s digital advertising market.

Globally, CTV has rapidly established itself as the fastest-growing channel in digital marketing, engaging viewers more dynamically than traditional linear TV and reshaping the advertising ecosystem. A frontrunner in the CTV space, Netflix reported a year-over-year doubling of its growth rate in the third quarter of 2024, after launching its ad-supported subscription in the United States—a testament to the significant potential CTV holds for the advertising industry.

Closer to home, Hong Kong’s CTV landscape is heating up. According to the latest Global Media Intelligence (GMI) Report, 93.8% of Hong Kong residents use video-on-demand streaming service—leading adoption rates across key markets in East Asia and Oceania, including China, Japan, Korea, Taiwan, and Australia/New Zealand. This staggering figure underscores the intense competition among global giants like Netflix and Disney+ and local heavyweights such as VIU and myTV SUPER. With new players like Max entering the fray, Hong Kong is primed for an explosion in CTV advertising opportunities.

As CTV grows in popularity and consumption, brands can position themselves at the forefront of this evolving landscape by leveraging a premium content strategy alongside tailored CTV measurement. CTV ads are often placed alongside high-quality, on-demand content, which associates brands with premium entertainment experiences. Last year's Summer Olympic Games were a great example of brands being able to reach engaged sports audiences programmatically on CTV. According to TVB ‘s 2024 Video Consumption Landscape Survey, over 50% of respondents find ads on TV and large screens more appealing than those on mobile devices. Additionally, 58% of respondents think that leisure viewing on TV subtly yet powerfully influences brand perception. Displaying CTV ads to the right audiences enhances both engagement and connection, helping advertisers convert premium customers on the big screen. In contrast, non-premium inventory—such as social media and user-generated content (UGC)—while popular, often lacks professional curation that resonates emotionally with customers.

Unlike traditional television that typically relies on aggregated data and a broader demographic for ad targeting, CTV measurement varies across a spectrum of metrics based on specific goals. This allows advertisers to target individual households using a combination of first-party and third-party data, along with viewing habits, accurately depicting the customer journey and identifying key online and offline channels that contribute to conversions. Additionally, smart measurement can help avoid overlapping ad exposure and support a better customer experience. By harnessing data-driven insights, advertisers can capitalise on the opportunities presented by CTV measurement and get the most out of their media spend.

Another emerging trend in digital advertising is retail media, which connects brands with customers through retailer solutions. Research from eMarketer projects that retail media spending across all digital marketing activations will reach US$140 billion by 2024, accounting for one-fifth of worldwide digital ad spending. Last year, we announced our partnership with foodpanda across seven Asian markets to implement retail media solutions using their first-party data powered by our programmatic advertising platform. This collaboration allows brands to reach foodpanda customers across various online platforms, including CTV/OTT, music streaming, and mobile apps, enhancing their visibility beyond foodpanda’s advertising services. During its beta phase in 2023, these solutions helped Unilever’s Knorr launch a new product line in Taiwan, resulting in a 229% increase in add-to-cart rates and an 81% rise in conversions, with 87% of buyers being new customers. This success illustrates the effectiveness of leveraging retail data to engage a wider audience, foster engagement, and expand the market reach.

In 2025, Hong Kong's programmatic advertising landscape holds vast opportunities. The continued shift toward data-driven and personalised advertising will act as a transformative force, making campaigns more efficient and impactful. The competitive landscape will keep evolving, presenting exciting opportunities for advertisers and brands across the open internet. CTV will prove to be an essential channel for driving customer conversions and enhancing brand impact. At the same time, the global trend of increasing search spending on e-commerce platforms will also manifest in Hong Kong, fueled by rising confidence in retail media. By partnering with trusted ad tech providers, brands and advertisers can effectively navigate this dynamic landscape and seize new business opportunities.