Surpassing 2 Trillion Won in 2017
South Korea’s mobile advertising market surpassed 2 trillion won (US$1.86 billion) last year for the first time, accounting for the most market share.
Cheil Worldwide announced on Feb. 26 that the total domestic advertising market came to 11.13 trillion won (US$10.37 billion) in 2017, up 1.8 percent from 10.93 trillion won (US$10.18 billion) a year earlier. The mobile advertising market expanded 27 percent to 2.22 trillion won (US$2.06 billion) compared to the previous year. In particular, the video-based display ad market grew 38.7 percent, accounting for 52.7 percent of the mobile ad market. It surpassed the search ad market with 47.3 percent for the first time.
The mobile video ad market has shown a significant growth largely due to the fact that an increasing number of people are watching video contents through mobile devices and leading media networks at home and abroad are strengthening video streaming services.
The PC ad market decreased 0.8 percent on-year to 1.62 trillion won (US$1.51 billion) as most digital ad budgets went into mobile ads.
The terrestrial TV ad market stood at 1.52 trillion won (US$1.42 billion) last year, down 12.1 percent from a year ago. The amount of terrestrial TV ads showed two digits of drops for two years in a row and its market share fell as low as 13.7 percent. The figure decreased more than 12 percent points from 26.4 percent in 2007.
The amount of ads on cable TV and comprehensive programming TV channels increased 5.2 percent on-year to 1.84 trillion won (US$1.71 billion) in 2017. The comprehensive programming TV channels saw its amount of ads grow as they succeeded in not only current news programs but also entertainment programs, while multiple program providers (MPPs), which have continuously created killer drama and entertainment contents, showed an increase in ads in the cable TV market.
Other broadcasting media IPTV and satellite TV showed an 8.2 percent and 10.5 percent growth, respectively. For printed ads, the newspaper ad market came to 1.41 trillion won (US$1.31 billion), down 4.5 percent from 2016, while the magazine ad market shrunk 9.1 percent to 343.8 billion won (US$320.47 million).