SMS Advertising - South Korea

South Korea

Highlights

Ad spending in the SMS Advertising market in South Korea is forecasted to reach US$13.29m in 2024.
The ad spending is anticipated to exhibit an annual growth rate (CAGR 2024-2030) of 0.57%, leading to a projected market volume of US$13.75m by 2030.
When compared globally, the United States is expected to generate the highest ad spending (US$310.40m in 2024).
The average ad spending per capita in the SMS Advertising market is projected to be US$0.26 in 2024.
South Korea's SMS Advertising market is rapidly growing due to the high mobile penetration rate and tech-savvy population embracing digital marketing strategies.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The SMS Advertising market in South Korea has been experiencing significant growth in recent years, driven by several factors that have shaped customer preferences and market trends.

Customer preferences: South Korean consumers have shown a strong preference for mobile communication and have embraced SMS as a popular means of communication. This has created a fertile ground for SMS Advertising, as it allows businesses to directly reach their target audience through a medium that is widely used and accepted. Additionally, South Korean consumers are known for their tech-savviness and willingness to adopt new technologies, making them receptive to SMS Advertising campaigns.

Trends in the market: One of the key trends in the SMS Advertising market in South Korea is the increasing use of personalized and targeted messages. Businesses are leveraging data analytics and customer insights to tailor their SMS campaigns to individual preferences, ensuring that the messages are relevant and engaging. This trend is driven by the desire to maximize the effectiveness of SMS Advertising and deliver a more personalized experience to consumers. Another trend in the market is the integration of SMS Advertising with other marketing channels. Businesses are recognizing the importance of a multi-channel approach and are incorporating SMS Advertising into their overall marketing strategies. This integration allows for a more cohesive and consistent customer experience, as well as the ability to reach consumers through multiple touchpoints.

Local special circumstances: South Korea has one of the highest smartphone penetration rates in the world, with a large portion of the population relying heavily on their mobile devices for communication and information. This high smartphone adoption rate creates a favorable environment for SMS Advertising, as it provides businesses with a direct and immediate channel to reach their target audience. Additionally, South Korea has a highly competitive business landscape, with companies constantly seeking innovative ways to stand out from the competition. SMS Advertising offers a cost-effective and efficient marketing solution, allowing businesses to reach a wide audience at a relatively low cost. This has contributed to the growth of the SMS Advertising market in the country.

Underlying macroeconomic factors: South Korea has a strong and stable economy, with a high level of consumer spending. This provides businesses with the financial resources to invest in marketing initiatives, including SMS Advertising. The country also has a well-developed telecommunications infrastructure, which supports the widespread use of SMS as a communication tool. Furthermore, South Korea has a high level of internet penetration and a tech-savvy population, creating an environment conducive to the growth of digital marketing channels such as SMS Advertising. The combination of these macroeconomic factors has contributed to the expansion of the SMS Advertising market in South Korea. In conclusion, the SMS Advertising market in South Korea is thriving due to customer preferences for mobile communication, the use of personalized and targeted messages, the integration of SMS Advertising with other marketing channels, the high smartphone penetration rate, the competitive business landscape, the strong and stable economy, the well-developed telecommunications infrastructure, and the high level of internet penetration. These factors have created a conducive environment for the growth of the SMS Advertising market in South Korea.

Data coverage:

The data encompasses B2B enterprises. Figures are based on SMS Advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers the advertising budget used for creating and sending SMS advertisements.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on specific predefined factors for each market. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and industry associations, third-party studies and reports, survey results from our primary research (e.g., the Statista Consumer Insights Global survey), as well as performance factors (e.g., user penetration, usage). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, number of internet users, and internet coverage. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function is well suited to forecast digital products due to the non-linear growth of technology adoption, whereas exponential trend smoothing (ETS) is more suited for projecting steady growth in traditional advertising markets. The main drivers are GDP per capita, consumer spending per capita, and internet coverage.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). Data from the Statista Consumer Insights Global survey is reweighted for representativeness.