Staff Reporters
Feb 20, 2020

South Korea ad market to hit US$10.6 billion this year: Cheil

Digital spend will surpass traditional media for the first time in 2020, according to the agency's new forecast.


Ad spending in South Korea grew 2.3% to US$10.05 billion in 2019 and will grow 5.5% to US$10.6 billion this year, according to a report and forecast from Cheil Worldwide.

Digital spend surpassed US$4.2 billion in 2019, capturing 42.2% of total spend, up from 37.5% in 2018. Mobile grew by a sizzling 17.2%. Display ads using video benefitted from increased 5G network coverage, leading to a 26.5% increase, Cheil added. Overall digital spend will surpass traditional media for the first time in 2020, Cheil added.

Desktop and outdoor advertising also recorded double-digit growth in 2019, but terrestrial TV advertising decreased by 15.3%. In fact, the overall broadcast market—terrestrial TV, cable TV, total TV programming, and radio—continued a three-year trend of shrinkage; it now accounts for 30.8% of spend, down from 33.9% in 2018. Cheil attributed the drop in terrestrial TV spending to a lack of favorable events, such as the Olympics and the World Cup, combined with a slowdown of the domestic economy and the cancellation of the introduction of in-program advertising.

As for 2020, Cheil's 5.5% growth prediction rests on the Tokyo Olympics and a general election counteracting the global recession and slowdown in domestic economic growth. Mobile ad spending will again record double-digit growth and account for nearly 30% of the entire market, Cheil predicted.

At today's rates US$1 = 1,190.10 won (1 won = US$0.000840266) 
This article is filed under...
Top of the Charts: Highlights of recent and relevant research


Related Articles

Just Published

3 hours ago

Creative Minds: Calvin Choong has an entire room of ...

Get to know the creative group head at Zeno Group whose son is the only respite he needs at the end of a bad day.

8 hours ago

Is this Malaysia Airlines campaign delusional?

In version 3.0 of its brand image, the airline’s new campaign harps back to an idyllic past that never quite existed.

9 hours ago

Women to Watch 2022: Ela Federigan-Chua, Optimax ...

An advocate for diversity and empowering those around her, Federigan-Chua managed to record incredible growth after being handed the reins of running her own agency.

9 hours ago

Chinese social platforms are more child-safe than ...

The Media Responsibility study from IPG Mediabrands also says user accountability on Chinese platforms is higher, as the platforms collectively develop more uniform content policies driven both by regulation and user preference.