Online Advertising

 

Global video platform YouTube is actively seeking to target the Korean mobile video ad market using its "selection and focusing" ad strategies. Naver is also scheduled to showcase an open-source video platform called Play League on Oct. 5. As a result, competition between global companies to make profits in the local mobile video ad market is expected to intensify.

According to industry sources on Sept. 7, the center of gravity for video platforms is shifting from terrestrial TVs and PCs to mobile devices. As data-centered cell phone plans, which do not impose a big burden on people for using wireless Internet, are taking root in the market, the mobile video ad market is rapidly growing as well.

Data recently compiled by the Ministry of Science, ICT and Future Planning shows that the use of mobile data is increasing sharply each month. More than half of the increase is concentrated on video.

In line with this trend, not only online video platform providers at home and abroad, but also Naver and Daum Kakao are competing for content to secure profits. They are seeking to dominate the market by offering web dramas, web movies, and highlights of popular terrestrial broadcasting.

In the past, the main ads were exposed before large-scale soccer games or popular dramas started, but premium ads that only last 5 to 15 seconds are now posted in real time on online and mobile platforms, which the majority of consumers love to use.

YouTube is going to unveil Google Preferred, a package ad product targeted at local YouTube channels ranked within the top 5 percent, on Oct. 1. It provides support for advertisers so that they can post ads through popular channels based on YouTube's algorithm that reflects the popularity and participation of each channel and that measures the number of revisits and video plays.

The nation's large portal operators are actively responding to YouTube's offensive in order to keep the local mobile video ad market, after losing the PC one.

Naver will release a beta version of Play League on Oct. 5. The video platform will be beta tested for 6 weeks, and will be officially launched within the year. Anyone who has a Naver ID will be able to participate in it. Naver also unveiled Internet-only entertainment content New Journey to The West via Naver TVCast. The variety show led by start producer Na Young-suk virtually exposes the name of specific products, since the online program is less regulated than terrestrial broadcasting.

Daum Kakao launched Kakao TV last June, in which it is possible to watch video content while chatting with acquaintances on KakaoTalk. The company believes that Kakao TV can easily spread content, since it automatically recommends friends fit for video content. Furthermore, observers say that Kakao TV will create synergy in the mobile video ad market with an increase in the number of KakaoTalk subscribers. The number of Kakao TV subscribers is approaching 40 million, in addition to the strength that KakaoTalk is one of the mobile services in which people usually stay for a long time.

This kind of move is likely to be further expanded using Multi-Channel Networks (MCNs) as a springboard. MCNs help individuals create videos, forge partnerships with advertisers, and manage profits, like entertainment agencies. An official at a local mobile SNS service provider said, "Thanks to an unlimited data plan in the range of 50,000 to 60,000 won each month, watching videos via mobile devices does not impose a big burden for users." The source added, "With the appearance of MCNs, a keyword for this year, I think that ad services using video platforms will be expanded."

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