Social Media Advertising

Social media has become a dynamic and influential online advertising format in Hong Kong, allowing brands to engage with their target audience in a highly personalized way. Various types of social media advertising exist, including sponsored posts on platforms like Facebook and Instagram and sponsored content on LinkedIn. Influencer marketing is also prevalent, with popular local influencers collaborating with brands to promote products and services. These diverse options enable businesses to reach a wide range of demographics and tailor their campaigns to specific objectives, making social media advertising a versatile and effective medium in the Hong Kong market.





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Different Social Media Statistics

To consider the popularity and the exposure your advertisements would have, there are some social media statistics to consider. Until July 2021, the most popular social media platform is Facebook, with 2.853 billion active monthly users, it is then followed by YouTube, with 2.291 billion active monthly users. WhatsApp takes the place of 3rd most popular social media platform with its 2 billion monthly users and Instagram is next, where 1.386 billion active monthly users posts and views content on the mobile app. Amongst these most popular social media platform, WhatsApp is the only conversation-based communication social media, unlike the others which are content sharing based, as a result WhatsApp does not contain any advertising spaces. Some other social medias with advertising spaces are Snapchat and LinkedIn, with 514 million and 57.5 million users respectively.

How Social Media Advertising Works?

Unsure how social media advertising works? Here are a few quick social media advertising tips to help you get acquainted with the idea.

One of the benefits you get for social media advertising is the ability to closely target your audiences. Naturally, this is a crucial step to social media advertising. With paid advertising tools on different social media platforms, you can choose the demographic of your audience, from age, location, and gender. Although these three options can often help you restrict the range of audience, it is best if you further specify your target audience in advance settings. Some details you can include to better target the audience are their demographics, interests, and behaviours. 

Demographics include education level, ethnicity, income level, etc. 

Interests are not hard to understand but must not be to narrow or too wide, for example food would be too wide while the name of a specific dish your restaurant serves might be too narrow. Balance the two to ensure the right audience sees your advertisement. 

Behaviours are something people less actively pursue but can be recorded and determined according to their daily lives. Such include the brand of mobile phones they use, the type of transportation they take. Having such considered this information, you can choose the people that are most likely to be persuaded by your advertisement and make better use of the online tools given by social media platforms for you to target your audiences.

>>>Learn more about targeting audience and tips on media buy

Social Media Advertisement Formats

Video Ads: Video ads are most common with social media platform with video playing functions integrated, such as YouTube and Facebook. There are usually skippable and non-skippable ads which could appear either before, after, or during the original video. Although there used to be immediately skippable ads, it has become more common for video ads only to be skipped after viewing for a period, usually for a few seconds.

Image Ads: This is a single image showcasing your product along with a short description to introduce the advertisement, most commonly appearing in between social media feeds. This type of advertisements is highly popular among Facebook and Instagram ads. Image ads could sometimes appear in the bottom of videos in the form of a banner, however there would not be further text descriptions.

Carousel Ads: A series of photos that follow each other; Perfect for exhibiting different products or processes

Story Ads: Stories are few-seconds-long social media feeds that are only displayed for 24 hours; therefore, users consume quick and vast information from stories. Since users know they would not view your advertisement back, it helps them make swift judgements once it appeals to them.

Advertising Cost

Social media platforms advertising budget can usually be measured with average CPM (cost per mil), the cost for each thousand impressions, and the average CPC (cost per click), the cost for each click on the advertisement.

Facebook: There are different parameters to calculate the advertising cost. It costs a minimum of about HKD $7.7 (USD $1) per day for impressions, HKD $38.9 (USD $5) per day for clicks, likes, and views, HKD $ 311.2 (USD $40) per day for app installations. If calculating by average CPM, it would cost HKD $60.0 (USD $7.19), and HKD $7.6 (USD $0.97) for average CPC.

YouTube: YouTube advertisements costs a minimum of $77.7 (USD $10) per day. The average CPM is HKD $75.3 (USD $9.68) and the average CPC is $25.0 (USD $3.21).

Instagram: Like the parameters of Facebook, Instagram has the exact same minimum advertising cost as Facebook. However, the average CPM and CPC is different for Instagram. Each thousand impressions would be charged with an average of HKD $61.6 (USD $7.91) and the average CPC would be HKD $27.7 (USD $3.56).

Snapchat: Advertising costs for Snapchat costs at least HKD $38.9 (USD $5) per day.

LinkedIn: The minimum budget is HKD $77.7 (USD $10) per day. If the average CPM is calculated, HKD $51.3 (USD $6.59) would be the cost. For average CPC, HKD $40.9 (USD $5.26) for LinkedIn ads.

Why Use Social Media Advertising?

Though social media advertising is not the most used advertising method, it is undeniable that social media is the new normal, judging that 85% of the Hong Kong population is active on social media.

  1. Social media aids interaction with advertisements. From the different formats of social media advertisements, it is obvious that there could be more interaction with advertisements than other types of advertisement. Users can click into the ad and be conveniently redirected to your website.
  2. Trend-based social medias can exponentially boost brand recognition. With the use of hashtags and cross platform communications, successful ad campaigns could blow up across different platforms, bringing users from different social media platforms to view your advertisement. Along with hashtags and trending topics, people can easily find your product and boost brand recognition.