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.

(Shutterstock)
(Shutterstock)

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

7 hours ago

Dior's localisation strategy in China pays dividends

Through its efforts to localise in China, the Christian Dior group recorded $21.6 billion in revenue during the first half of 2020, with 12% organic growth.

8 hours ago

It's time to stand up to bad behaviour

We should nurture a workplace culture where people can call out inappropriate actions with the aim that everyone feels that they belong and can therefore fulfil their potential

8 hours ago

Audi Q2 takes users on a drive through Instagram filter

The idea has been conceptualised by BBH India

8 hours ago

DDB Mudra Group's CEO on the secrets of their new ...

Aditya Kanthy explains the agency's approach to new business wins, the opportunity 2020 provides for diversity, and more.