Direct Messaging Advertising - South Korea

Ad spending in the Direct Messaging Advertising market in South Korea is forecasted to reach US$1.06bn in 2024.
The market is anticipated to demonstrate an annual growth rate (CAGR 2024-2030) of 0.33%, leading to an estimated market volume of US$1.08bn by 2030.
South Korea's largest market is Direct Mail Advertising, with a market volume of US$661.10m in 2024.
When compared globally, the United States will generate the highest ad spending, amounting to US$29.98bn in 2024.
The average ad spending per capita in the Direct Messaging Advertising market in South Korea is projected to be US$20.46 in 2024.
South Korea embraces innovative AI-driven direct messaging strategies, revolutionizing the advertising market with personalized and engaging campaigns.

Definition:

Direct Messaging Advertising refers to a type of advertising format that involves sending advertisement messages directly to individual audiences or specific target groups through private communication channels. Direct Messaging Advertising includes both traditional and digital advertising methods, such as direct mail, e-mail, SMS, web push, instant messaging, and telemarketing. This form of advertising aims to establish a personalized and direct connection with potential customers.

Structure:

Direct Messaging Advertising typically refers to advertising formats used within various messaging platforms or direct messaging channels. These formats are designed to deliver targeted advertisements directly via private communication channels such as e-mail, SMS, direct mail, web push, telemarketing, and instant messaging.

Additional information:

Direct Messaging Advertising comprises advertising spending and average revenue per user. The market only displays B2B spending. Figures are based on advertising spending and exclude agency commissions, rebates, production costs, and taxes. For more information on the data displayed, use the info button right next to the boxes.

SMS advertising
Direct mail advertising
Web push advertising
Telemarketing
Instant messaging advertising
Traditional direct messaging
Digital direct messaging

Service agencies
Consultant fees
Production costs
Design services

The Direct Messaging Advertising market in South Korea has experienced significant growth in recent years.

Customer preferences: South Korean consumers have shown a strong preference for mobile messaging apps, making them an ideal platform for advertising. With a high smartphone penetration rate and a tech-savvy population, South Koreans are highly engaged with messaging apps, spending a significant amount of time on these platforms. This has created a lucrative opportunity for advertisers to reach their target audience directly through direct messaging advertising.

Trends in the market: One of the key trends in the Direct Messaging Advertising market in South Korea is the rise of personalized and interactive ads. Advertisers are leveraging the data collected from messaging apps to deliver targeted and relevant ads to users. This helps to improve the effectiveness of advertising campaigns and increases user engagement. Additionally, interactive ads, such as quizzes or games, are becoming more popular as they provide a more engaging and interactive experience for users. Another trend in the market is the integration of e-commerce within messaging apps. South Korean consumers are increasingly using messaging apps not only for communication but also for shopping. Messaging apps are now offering features that allow users to browse and purchase products directly within the app. This integration of e-commerce and messaging apps provides advertisers with a unique opportunity to reach consumers at the point of purchase.

Local special circumstances: One of the unique aspects of the Direct Messaging Advertising market in South Korea is the dominance of local messaging apps. While global messaging apps like WhatsApp and Facebook Messenger are popular worldwide, South Koreans prefer to use local messaging apps such as KakaoTalk and Naver Line. These local messaging apps have a large user base and offer unique features that cater to the preferences of South Korean consumers. Advertisers need to take into account these local preferences and tailor their advertising strategies accordingly.

Underlying macroeconomic factors: South Korea has a strong and growing economy, which has contributed to the growth of the Direct Messaging Advertising market. The country has a high internet penetration rate and a tech-savvy population, creating a favorable environment for digital advertising. Additionally, South Koreans are known for their high adoption rate of new technologies, making them receptive to direct messaging advertising. In conclusion, the Direct Messaging Advertising market in South Korea is experiencing significant growth due to customer preferences for mobile messaging apps, the rise of personalized and interactive ads, the integration of e-commerce within messaging apps, the dominance of local messaging apps, and the underlying macroeconomic factors of a strong and growing economy. Advertisers should capitalize on these trends and special circumstances to effectively reach their target audience in South Korea.

Data coverage:

The data encompasses B2B enterprises. Figures are based on Direct Messaging Advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers advertising by businesses via e-mail, SMS, direct mail, messengers, web push, telemarketing, and instant messaging.

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, number of smartphone users, internet coverage, and number of urban households. 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 4G 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.

This report presents a comprehensive analysis and additional information on the Advertising & Media market, in a PDF format.

All advertising markets across the globe win, yet some win more than others. Ad spending worldwide reached almost 733 billion U.S. dollars in 2023, up less than three percent from the previous year. For comparison, in 2022, Switzerland ranked 20th among the leading economies by gross domestic product (GDP) with a result exceeding 800 billion dollars. Whereas global ad revenues concentrate in areas with either large populations or high purchase power – preferably both – their evolution depends on a larger set of indicators. It was forecast that, in 2024, South Asia will be the world's fastest-growing ad market, and the only out of nine with a double-digit increase rate: 12.1 percent. The second-placed region, comprising the United States and Canada, was projected to see its ad expenditure rise 7.6 percent.