Half of HK firms plan to boost ad spending, digital transformation – survey

About half of Hong Kong enterprises expressed plans to boost advertisement and market promotion spending this year to maintain competitiveness, a survey by financial service company American Express showed.

The research surveyed over 500 Hong Kong companies, starting from December 2024 to January 2025.

Among half of the enterprises that anticipate increasing spending on advertisement and market promotion, 62 percent plan to expand advertising and marketing channels, and 61 percent want to improve competitiveness through high-quality advertisements and promotions, according to the survey.

In addition, 43 percent of companies expressed willingness to spend more on overseas business entertainment and tourism, with 64 percent of them aiming to expand into potential overseas markets, the findings showed.

The survey also unveiled that Hong Kong enterprises want to invest more in digital transformation, with 43 percent expecting to increase allocated costs for it. Among them, 60 percent of firms aim to prevent online fraud and improve safety, while half of them want to improve the efficiency and speed of transactions.

Companies are also committed to enhancing the efficiency of cash flow management and improving financial flexibility, the survey showed. Among several strategies, the top three options to improve cash flow are implementing digital payments to accelerate turnover, using credit cards to provide additional credit periods and getting loans or fund support.

Hong Kong companies expect to drive business growth through investment and maintain flexibility, while cash flow remains the key for enterprises to seize development opportunities, as well as being an important cornerstone for maintaining a stable business environment, American Express said.

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