Mobile advertising spending in South Korea surged 36 percent, far outpacing the 1.5 percent growth in the country’s total ad market.
According to data compiled by Cheil Worldwide Inc., the country’s leading advertising agency on Tuesday, the combined ad spending in Korea increased 1.5 percent to 10.9 trillion won ($9.4 billion) last year from a year ago period.
Advertising spending on cable TVs rose 5 percent on year to 1.7 trillion won, led by their popular entertainment programs. It also took the largest share within entire ad market for the first time last year.
Ad spending on terrestrial TVs plunged 15.9 percent to 1.7 trillion won from the previous year. The fall in terrestrial TV commercials came after some of the large companies cut their TV ad budgets amid economic uncertainties. Poor viewership of the 2016 Rio Summer Olympics due to 12-hour time difference between Korea and Brazil also was a damper, said Cheil Worldwide.
Ads in newspapers fell 2 percent on year to 1.5 trillion won last year while magazine suffered 9.3 percent decline to 378 billion won from a year ago period.
Mobile ad spending reached 1.7 trillion won by growing at whopping 36.3 percent. The ad on mobile video platforms especially thrived with 37.1 percent on-year growth and surpassed ad spending on search engines that expanded by 35.6 percent.
High-quality mobile videos amid fast and easy-to-use mobile internet environment on top of improved video services presented by local and overseas media companies largely contributed to the big jump in the mobile ad market, said Cheil Worldwide.
PC advertisement dwindled 4.9 percent on year to 1.6 trillion won. It has been in a downward spiral after it peaked to 2 trillion won in 2013 and is expected to continue to lose in the competition with mobile ad platform.
For 2017, Cheil Worldwide predicted companies in Korea to spend a total of 11.7 trillion won in advertising, up just 2.6 percent amid growing uncertainties over economic conditions at both home and abroad.
By Kang Young-woon
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]