"TV Appearance and US Expansion" SME Advertising Support Boosts Sales by 24.6%

KCC and Broadcasting Advertising Promotion Agency
Effectiveness of TV and Radio Advertisement Production Support

[Asia Economy Reporter Cha Min-young] #. The CEO of Company A, who left an accounting firm to enter the home meal replacement (HMR) business, conducted brand marketing last year with the support of the Korea Communications Commission's TV advertising production assistance. As the advertisement proved effective, the company's value quadrupled in just six months, attracting an investment of 15 billion KRW. The workforce increased by 51 employees, and the company is currently preparing for a listing on the KOSDAQ market.

#. Small and medium-sized enterprise Company B, which manufactures kimchi in Gokseong, Jeollanam-do, experienced a rise in brand awareness after receiving TV and radio advertising production support from the Korea Communications Commission while seeking local sales channels. Thanks to increased demand for kimchi during last year's stay-at-home period, sales grew, and the number of employees rose from 3 to 13. Word of mouth even reached the United States, opening export opportunities.

The Korea Communications Commission announced on the 22nd that the sales of companies targeted by the broadcasting advertising revitalization support project, conducted last year through the Korea Broadcast Advertising Corporation, increased by an average of 24.6%. The advertising support project for local small business owners, introduced to prevent regional neglect, received satisfaction responses from 4 out of 5 participants.

Supported Companies See Average Sales Increase of 24.6%

According to a survey conducted by the Korea Communications Commission on the effects of the 2020 "Innovative Small Business Broadcasting Advertising Revitalization Support Project," the sales of supported small businesses increased by an average of 24.6% compared to the previous year, the commission announced on the 22nd. TV advertising sales rose by 25.3%, and radio advertising sales increased by 23.1%. Among the supported companies, 16 reported sales growth exceeding 100%. Employment among supported companies increased by an average of 19.1% year-over-year, with 41 companies experiencing at least a 10% increase in the number of employees.

Companies rated their satisfaction at an average of 4.49 out of 5 points. Brand awareness improvement scored 4.25 points, and sales increase assistance scored 3.62 points. Additionally, supported companies spent 10.36 billion KRW on broadcasting advertising, which is 6.58 times the amount of support received, creating a virtuous cycle that revitalized the broadcasting advertising market.

The Innovative Small Business Broadcasting Advertising Revitalization Support Project provides 50% of the production costs for broadcasting advertisements to small businesses with excellent technology but unable to utilize broadcasting advertising due to high costs. Last year, 1.57 billion KRW was spent to support the production of TV advertisements (35 companies) and radio advertisements (33 companies), assisting a total of 68 companies. Since the program's inception in 2015, a cumulative total of 531 companies have been supported, with total expenditures reaching 12.52 billion KRW.

Support Extended to Previously Neglected Local Small Businesses

The newly launched "Local Community-Based Broadcasting Advertising Revitalization Infrastructure Project" also received positive responses last year. This project was initiated by the Korea Communications Commission to promote mutual growth between relatively neglected local small business owners and the regional broadcasting industry within the framework of the Innovative Small Business Broadcasting Advertising Revitalization Support Project.

During the past year, the Korea Communications Commission supported 133 small business owners with 1.2 billion KRW for advertising production and broadcasting costs. Ninety percent of the supported companies were selected from non-metropolitan areas. Supported companies received free one-on-one customized consulting from local advertising experts covering all aspects of marketing, including broadcasting advertisement production and broadcasting.

A survey on the effects of the Local Community-Based Broadcasting Advertising Revitalization Infrastructure Project last year showed that supported small business owners achieved an average sales growth of 13.5% compared to the previous year despite the COVID-19 crisis, with 14 companies reporting sales growth exceeding 100%. Employment increased by an average of 27.2% year-over-year, and 36 companies experienced at least a 10% increase in the number of employees. Furthermore, 78.2% of small business owners indicated plans to continue advertising after the support period ended.

Overall satisfaction with the support project averaged 4.08 out of 5 points, with brand awareness improvement scoring 3.98 points, assistance in increasing sales scoring 3.42 points, and help in overcoming the COVID-19 crisis scoring 3.62 points.

Han Sang-hyuk, Chairman of the Korea Communications Commission, stated, “In a situation where small and medium-sized enterprises and small business owners are particularly struggling due to the spread of COVID-19, it is very meaningful that broadcasting advertising support has helped overcome the crisis and grow, while also revitalizing local broadcasting.” He added, “We will continue to expand the scale of support projects so that small and medium-sized enterprises and small business owners who need broadcasting advertising can use it effectively.”

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