Advertising - South Korea | Statista Market Forecast

Ad spending in the Advertising market in South Korea is forecasted to reach US$16.50bn in 2024.
The largest market within the Advertising industry is Search Advertising, with a market volume of US$5.33bn in 2024.
When compared globally, the United States is expected to lead in ad spending, reaching US$425.90bn in 2024.
Within the Advertising market, 79% of total ad spending is projected to come from digital sources by 2030.
The average ad spending per capita in the Search Advertising sector is estimated to be US$103.10 in 2024.
Furthermore, within the Advertising market, Advertising market of the 87% revenue is anticipated to be generated through programmatic advertising by 2030.
South Korea's advertising market is seeing a shift towards influencer marketing, leveraging the power of social media to reach target audiences effectively.

Definition:
Advertising spending refers to expenses for promotional strategies with which brands or businesses purchase advertising space to promote products or services. The primary purposes of advertising include creating awareness, generating interest, and persuading consumers to take a particular action such as purchasing a product, visiting a website, or supporting brands. Advertisers use advertising to reach their target audience while media companies and advertising agencies use it as a source of income.

Structure:
The advertising spending consists of two main channels (traditional advertising and digital advertising). Traditional Advertising refers to above-the-line media that delivers commercial messages to broad audiences. This includes mass media such as traditional TV, traditional radio, printed newspapers, printed magazines, and traditional out-of-home (OOH) advertising formats. Digital Advertising uses the internet to deliver marketing messages to internet users in various forms. This includes digital video, search engine, social media, digital out-of-home, digital banner, digital audio, digital classifieds, and influencer advertising.

Additional information:
The market comprises advertising spending, share by advertising channel, users, average revenue per user, advertising share by industry, ad spending by medium, and digital ad spending share (programmatic and non-programmatic). The market only displays B2B spending and users for the above-mentioned channels. Figures are based on advertising spending and exclude agency commissions, rebates, production costs, and taxes. Additional definitions for each market can be found on the respective pages. For more information on the data displayed, use the info button right next to the boxes.

Traditional advertising such as non-digital ads for TV and radio, as well as out-of-home advertising and print advertising
Digital advertising such as online ads for video, banner, audio, classifieds, and search engines, as well as digital out-of-home, social media, in-app, and connected TV advertising
Influencer advertising

Sponsorships/events and promotion
Product placement
Commission-based affiliate systems

The Advertising market in South Korea has been experiencing significant growth in recent years, driven by changing customer preferences and local special circumstances. Customer preferences in South Korea have shifted towards digital advertising, with consumers increasingly relying on smartphones and social media platforms for information and entertainment. This has led to a surge in online advertising spending, as advertisers seek to reach their target audience through digital channels. Additionally, there has been a growing demand for personalized and interactive advertisements that engage consumers and provide a more immersive experience. Advertisers are now focusing on creating content that resonates with consumers and encourages them to take action. Trends in the market also indicate a shift towards influencer marketing in South Korea. Influencers, particularly those in the beauty and fashion industries, have gained significant popularity and influence over consumers. Advertisers are leveraging the reach and impact of these influencers to promote their products and services. This trend is further fueled by the rise of social media platforms such as Instagram and YouTube, where influencers have a large and dedicated following. By partnering with influencers, advertisers can tap into their loyal fan base and generate brand awareness and sales. Local special circumstances in South Korea have also contributed to the development of the advertising market. The country has a highly connected population, with one of the highest internet penetration rates in the world. This provides advertisers with a vast audience to target through digital advertising. Additionally, South Korea has a strong culture of innovation and technology adoption, which has created a fertile ground for the growth of digital advertising. The government has also been supportive of the advertising industry, providing incentives and support for companies to invest in advertising and marketing activities. Underlying macroeconomic factors have also played a role in the development of the advertising market in South Korea. The country has a strong and stable economy, with a high GDP per capita. This has created a favorable environment for businesses to invest in advertising and marketing to promote their products and services. Additionally, South Korea has a large and growing middle class, with disposable income to spend on consumer goods. Advertisers are targeting this demographic through various advertising channels to capture their attention and drive sales. In conclusion, the Advertising market in South Korea is experiencing growth due to changing customer preferences towards digital advertising, the rise of influencer marketing, local special circumstances such as high internet penetration and government support, and underlying macroeconomic factors such as a strong economy and a growing middle class. Advertisers are adapting their strategies to meet the evolving needs of consumers and to leverage the opportunities presented by the digital landscape.

Data coverage:

Data encompasses enterprises (B2B). Figures are based on advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers advertising by businesses for traditional and digital advertisements.

Modeling approach:

Market sizes are determined by a combined top-down and bottom-up approach, based on a specific rationale for each market market. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and industry associations, third-party reports, and survey results from our primary research (e.g., Consumer Insights Global Survey). Next, we use relevant key market indicators and data from country-specific associations, such as GDP, internet users, consumer spending, and digital consumer spending. 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 particular 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.

Additional notes:

Data is modeled using current exchange rates. The impacts of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice per 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).

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.