Cheil Worldwide announces the settlement and forecast of total advertising expenses in Korea
In 2020, the domestic advertising market decreased by 0.8% year-on-year to KRW 11.995 trillion
Double-digit growth in the digital advertising market, reaching KRW 5.71 trillion
By detailed media, mobile advertising costs 17.5%, the highest growth rate, and theater advertising costs decreased by 72%.
Cheil Worldwide announced on the 9th that in 2020, the total domestic advertising expenditure decreased by 0.8% year-on-year to 11,995 billion won. It is analyzed that the digital advertising market continued high growth last year, which made it relatively good despite the Corona 19 situation.
△ Digital advertising expenditure is expected to exceed 6 trillion won this year… Market share expected to approach 50%
Last year, the digital advertising market recorded double-digit growth, reaching 5.7 trillion won. It grew 13% year-on-year, and its ad market share rose to 47.6%, the highest ever.
It is interpreted that the establishment of a non-face-to-face environment caused by the Corona 19 pendemic had a major impact on the background of the high growth of the digital advertising market. The demand for digital advertisements increased significantly due to the increase in the use of online services using digital video, such as working from home and online classes.
△ Digital advertising market
The digital advertising market led the advertising market with a high growth of 13% compared to the previous year due to the joint growth of mobile and PC.
Mobile advertising expenditure recorded 3,855.8 billion won, an increase of 17.5% over the previous year. By type, search advertisements grew 6.6% year-on-year to KRW 1.822.3 billion, while exposure-type advertisements grew 29.4% year-on-year due to the continuous increase in demand for video advertisements, forming a scale of KRW 2 trillion.
The PC ad market also played a major role in reducing the decline in the ad market, recording an increase of 4.7% year-on-year to KRW 1.854.8 trillion, with exposed ads growing 10.5% due to the influence of telecommuting and online classes.
△ Broadcast and print advertising market
The total broadcast advertising market, including TV and radio, decreased by 8.5% from the previous year to KRW 3,465 billion.
Terrestrial TV advertising costs fell 7.7% year-on-year to KRW 1,136.9 billion. Amid the overall economic downturn, it is analyzed that the loss of the Tokyo Olympics and the delay in the introduction of interim advertisements have affected. Advertising costs for cable TV and comprehensive programming channels were totaled to KRW 1.8606 trillion, down 7% from the previous year. Cable TV declined year-on-year due to difficulties in broadcasting performances and sports, while comprehensive channels have grown year-on-year due to the success of trot entertainment content.
In the print advertising market, newspaper advertising expenditures decreased by 2.4% year-on-year to KRW 1.389.4 trillion, and the magazine advertisement market recorded 2356 billion KRW, down 16.8% year-on-year.
△ OOH (Out of Home) advertising market
In the aftermath of the Corona 19 pendemic, the OOH ad market fell sharply. The OOH advertising market was aggregated to 756 billion won, a 27.2% decrease from the previous year. After forming the market size of 800 billion won in 2011, it has been reduced to 700 billion won in 10 years. Due to a sharp decline in theater consumption, theater advertising costs fell 72% year-on-year to KRW 60.1 billion. In addition, transportation such as airports and railroads and shopping malls and stadiums have also decreased to double digits.
△ Forecast of Korea’s total advertising expenditure in 2021
The World Economic Cooperation and Development Organization (OECD) predicted that Korea’s economic growth rate this year is 2.8%. In 2021, the advertising market is also projected to reach KRW 1.25 trillion, up 4.6% year-on-year on the back of economic recovery expectations and rising consumer sentiment.
The digital advertising market, which recorded double-digit growth last year due to the establishment of a non-face-to-face environment, is expected to exceed 6 trillion won in market size and close to 50% of the media market as market demand expands further due to the continued growth of video ads.
The broadcasting advertisement market is expected to turn positive growth through the full implementation of terrestrial intermediate advertisements and the acceptance of virtual and indirect advertisements for items with limited broadcasting time. The OOH advertising market, which has fallen sharply due to the impact of Corona 19, is expected to benefit from a recovery in the theater advertising market and the expansion of OOH media for consumers, but advertising costs are expected to be similar to the previous year.
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