Byravee Iyer
Feb 24, 2015

Korea’s ad market to rebound in 2015: Cheil

SEOUL - After a year-long slump, Korea’s terrestrial TV ad market will rebound somewhat in 2015, helping the country’s adspend grow 3.2 per cent to touch US$9.4 billion in 2015, according to an estimate by Cheil Worldwide.

Korea's mobile advertising spend saw healthy growth in 2014
Korea's mobile advertising spend saw healthy growth in 2014

Despite big sporting events including the Sochi Winter Olympics, FIFA World Cup and the Incheon Asian Games, the ad market didn’t see much growth in 2014, with ad spend increasing just 0.6 per cent due to the Sewol Ferry disaster and reduced private consumption. Terrestrial TV ad spending fell by 8 per cent to USD 1.6 billion driven by the growth of IPTV as more Koreans turned to video-on-demand. As a result, the IPTV ad market grew by as much as 67 per cent.

In 2015, Cheil predicts terrestrial TV growth will rebound to grow 3.4 per cent to US$1.7 billion and mobile advertising will grow more than 20 per cent to surpass US$949 million.

Last year, Korea’s landline internet ad market fell 6.8 per cent to US$1.8 billion, recording the first negative growth, as advertisers opted to advertise on mobile. Search advertising dropped 7 per cent and display ad spend decreased 6.4 per cent. Mobile advertising soared 82.4 per cent to US$796 million in 2014.

Both newspaper and magazine ad markets shrank, by 3.3 per cent and 5.9 per cent respectively.

Digitisation of out-of-home contributed to the popularity of the medium in 2014, leading to 4.6 per cent growth. The booming domestic movie industry helped cinema advertising grow 3.3 per cent to touch a record US$167 million.

 

 

 

Related Articles

Just Published

3 hours ago

Stephen Li departs as OMD APAC CEO

Li is on gardening leave until November and a search for a replacement is underway.

9 hours ago

Snap launches a studio to help brands use AR

Arcadia will develop AR experience technology for brands globally.

9 hours ago

Procter & Gamble increases marketing spend by 30%

The consumer product goods company, which spent an additional $130 million on marketing in the quarter, expects spend to continue to increase as it returns to pre-pandemic levels.

9 hours ago

Dentsu’s global sustainability lead: ‘We have to ...

The holding group is nearly 80% towards its net zero target.