Domestic Advertising Market to Reach 12.55 Trillion Won This Year... Digital Advertising Spending Expected to Surpass 6 Trillion Won

Cheil Worldwide Announces South Korea's Total Advertising Expenditure Settlement and Outlook
Last Year, Domestic Advertising Market Decreased by 0.8% from the Previous Year to 11.9951 Trillion KRW
Double-Digit Growth in Digital Advertising... Meanwhile, Cinema Advertising Dropped Sharply by 72%
This Year, Digital Advertising Expected to Surpass 6 Trillion KRW... Market Share Approaching 50% Anticipated

[Asia Economy Reporter Yuri Kim] Last year, despite the COVID-19 situation, the domestic advertising market performed relatively well as the digital advertising market continued double-digit growth. This year, it is expected to grow by nearly 5% compared to last year due to economic recovery expectations and rising consumer sentiment.

Cheil Worldwide announced on the 9th that last year's total domestic advertising expenditure was recorded at 11.9951 trillion KRW, a 0.8% decrease compared to the previous year.

Last year, the digital advertising market grew by 13% compared to the previous year, reaching 5.7106 trillion KRW. The market share of advertising reached an all-time high of 47.6%. The continued high growth of the digital advertising market is attributed mainly to the establishment of a non-face-to-face environment due to COVID-19. The increase in the use of online services utilizing digital videos, such as remote work and online classes, significantly boosted demand for digital advertising.

Specifically, both mobile and PC advertising grew. Mobile advertising expenditure recorded 3.8558 trillion KRW, a 17.5% increase compared to the previous year. Search advertising grew by 6.6% year-on-year to 1.8293 trillion KRW, and display advertising grew by 29.4%, forming a market of about 2 trillion KRW. The PC advertising market also grew by 4.7% year-on-year to 1.8548 trillion KRW, with display advertising growing 10.5% due to the impact of remote work and online classes.

The total broadcast advertising market, including TV and radio, was recorded at 3.4651 trillion KRW, an 8.5% decrease compared to the previous year. Terrestrial TV advertising expenditure decreased by 7.7% year-on-year to 1.1369 trillion KRW. This decline is analyzed to be influenced by the overall economic downturn, the cancellation of the Tokyo Olympics, and the postponement of mid-roll advertising introduction. Cable TV and comprehensive programming channel advertising expenditures were recorded at 1.8606 trillion KRW, a 7% decrease compared to the previous year. Cable TV decreased year-on-year due to difficulties in performances and sports broadcasts. On the other hand, comprehensive programming channels showed growth compared to the previous year due to the success of trot entertainment content.

The print advertising market saw newspaper advertising expenditure decrease by 2.4% year-on-year to 1.3894 trillion KRW, and the magazine advertising market recorded 235.6 billion KRW, a 16.8% decrease compared to the previous year.

The OOH (Out-Of-Home) advertising market sharply declined due to the impact of COVID-19. The OOH advertising market was recorded at 756 billion KRW, a 27.2% decrease compared to the previous year. After forming a market size of over 800 billion KRW in 2011, it shrank to a 700 billion KRW scale in 10 years. In particular, cinema advertising expenditure sharply dropped by 72% year-on-year to 60.1 billion KRW due to a drastic decrease in theater consumption. Additionally, transportation such as airports and railways, as well as shopping malls and stadiums, also saw double-digit decreases.

The advertising market in 2021 is expected to record 12.55 trillion KRW, a 4.6% increase compared to the previous year, supported by economic recovery expectations and rising consumer sentiment. Digital advertising, which recorded double-digit growth last year due to the establishment of a non-face-to-face environment, is expected to surpass 6 trillion KRW in market size and approach a media share of 50%. It is analyzed that market demand will further expand due to the continued growth of video advertising.

The broadcast advertising market is also expected to turn to positive growth due to the full implementation of terrestrial mid-roll advertising and the allowance of virtual and indirect advertising for broadcast time-restricted items. The OOH advertising market, which sharply declined due to COVID-19, is expected to benefit from the recovery of the cinema advertising market and the expansion of consumer contact OOH media, but advertising expenditure is anticipated to remain at a level similar to the previous year.

This content was produced with the assistance of AI translation services.