Business Outlook
Manpower Shortage - A major challenge faced by the media and communications industry is the shortage of qualified personnel, evidenced by recruitment difficulties in journalism, advertising, public relations, and related fields, with 44% to 78% of respondents facing challenges. The industry saw a 3.1% increase in freelancers, particularly in the journalism and advertising sectors, emphasising the need for strategic approaches to address shortages and maximise opportunities.
Economic Uncertainty and Market Dynamics – Perceived uncertainty has caused journalism and advertising sectors to be more conservative towards the future.
Risk of AI - There are concerns about risks such as misuse of personal information, creation of malicious content, legal risks, and copyright infringement need to be addressed for sustainable growth in media and communications enterprises.
Talent Shortage and Skills Gap - The industry faces a talent shortage, particularly in editorial, production, and executional roles, accounting for 64% of total vacancies or 2.8% of the workforce in 2023. Challenges in hiring include a lack of relevant experience and training among applicants. The integration of AI technology has created a skills gap, disrupting the demand for certain skills and knowledge in the industry.
Competitive Pressures and Misinformation Concerns - The journalism sector has to uphold its principles in the competitive environment and combat misinformation to maintain public trust.
Position Hong Kong as an East-meets-West Centre for International Cultural Exchange –Government initiatives like the Blueprint for Arts and Culture and Creative Industries Development, will enhance global visibility and foster cultural exchanges, offer a platform for international events and boost advertising, public relations, and film sectors.
Expansion of Convention and Exhibition Facilities and Mega-Events - These developments provide a larger platform for hosting international events in sports, culture, and arts, stimulating economic activity, and driving demand for advertising, public relations and marketing services.
Emergence of New Media Platforms - New media platforms like social media, video streaming, Web 3.0, and the metaverse have created fresh opportunities for advertising and public relations agencies to reach audiences effectively and engage with evolving consumer behaviour.
Generative AI - The integration of generative AI in media and communications offers innovation and efficiency opportunities.
Film and Media Production Opportunities - Investments in AI technology and government funding schemes are driving industry expansion, enhancing international exchanges, and improving production quality.
Demand for ESG Marketing - Increased public awareness of Environmental, Social, and Governance (ESG) strategies has created a demand for innovative marketing approaches.
