Half of the 12 trillion advertising market is digital… Only PCs and mobiles grow in Corona

On the 9th, Cheil Worldwide announced the financial results of the domestic advertising market last year. Last year, the total domestic advertising expenditure decreased 0.8% year-on-year to 11 trillion 9951 billion won, and only the digital advertising market has grown significantly.

First, it was found that the digital advertising market was 5,710.6 billion won, up 13% from the previous year. The share of the entire advertising market also reached a record high of 47.6%. In particular, mobile advertising expenditures rose to 3,855.8 billion won, a significant increase (17.5%) from the previous year. The PC ad market also increased slightly (4.7%) from the previous year to 1.85 trillion won. The growth of the digital advertising market was largely affected by Corona 19. Due to telecommuting and online classes, the digital exposure-type advertisement market such as video advertisements has grown significantly.

Media other than digital have reduced advertising costs due to Corona 19. In the print advertising market, advertising expenses for newspapers decreased by 2.4% year-on-year to KRW 1.3894 trillion, and advertising expenses for magazines decreased by 16.8% to KRW 2356 billion. The combined broadcast advertising market for TV and radio was 3.465 trillion won, an 8.5% decrease from the previous year.

In the case of terrestrial TV last year, when the Tokyo Olympics were canceled last year, the advertising market shrank 7.7% from the previous year, recording 1.136.9 trillion won. The advertising cost of cable TV and comprehensive (longitudinal) channels decreased by 7% compared to the previous year, reaching 1.860.6 trillion won. The market for cable TV also shrunk due to difficulties in broadcasting performances and sports, and the advertising market for full-length channels expanded due to the promotion of entertainment programs such as trots.

The OOH (Out Of Home) ad market, which was greatly affected by Corona 19, was aggregated to 756 billion won, down 27.2% from the previous year. Since 2011, it has maintained the scale of 800 billion won, but fell to 700 billion won in 10 years. Theatre’s advertising expenditure shrank to 60.1 billion won, a 72% decrease from the previous year.

Meanwhile, Cheil Worldwide predicts that this year’s advertising market will grow to 12.5 trillion won, an increase of 4.6% from last year. With the spread of non-face-to-face culture, the digital advertising market is predicted to exceed 6 trillion won. An official of Cheil Worldwide said, “With the World Organization for Economic Cooperation and Development (OECD) forecasting Korea’s economic growth rate of 2.8%, expectations for economic recovery will increase, and the advertising market will grow larger than last year.” If allowed, the broadcast advertising market is expected to grow positively.”

Reporter Kim Kyung-mi [email protected]