Digital Video Advertising - South Korea

Ad spending in the Digital Video Advertising market in South Korea is forecasted to reach US$2.70bn in 2024.
The annual growth rate (CAGR 2024-2030) is expected to be 5.72%, leading to a projected market volume of US$3.77bn by 2030.
With a projected market volume of US$85.39bn in 2024, the majority of revenue will be generated the United States.
Within the Digital Video Advertising market, 87% of total ad spending will come from mobile in 2030.
The average ad spending per internet user in the Digital Video Advertising market is estimated to be US$56.40 in 2024.
Connected TV ad spending in the Digital Video Advertising market is anticipated to reach US$233.10m in 2024, with an expected CAGR of 2.77%, resulting in a projected market volume of US$274.60m by 2030.
Ad spending on short-form videos in the Digital Video Advertising market is projected to reach US$1.11bn in 2024, with an annual growth rate (CAGR 2024-2030) of 9.61%, leading to a projected market volume of US$1.92bn by 2030.
The rise of programmatic buying in South Korea's digital video advertising market is revolutionizing targeting capabilities and driving higher engagement rates.

Definition:
Digital Video Advertising includes all ad formats within webpage-based videos, app-based video players, social media, or streaming apps on computer screens, smartphones, tablets, and other internet-connected devices. Videos that seamlessly match the form and function of the environment (e.g., news websites, video platforms) in which they appear (so-called native advertising) are also included in Digital Video Advertising.

Additional information:
Digital Video Advertising comprises advertising spending, connected-TV advertising spending, users, average revenue per user, and user demographic. The market only displays B2B spending. Figures are based on Digital Video Advertising spending and exclude agency commissions, rebates, production costs, and taxes. Key players in Digital Video Advertising include Comcast Corp., The Walt Disney Company, YouTube, TikTok, and Facebook. For more information on the data displayed, use the info button right next to the boxes.

All ad formats within webpage-based videos, app-based video players, social media networks, or social media apps
Pre-roll, mid-roll, and post-roll video ads
Text- or image-based overlays that appear in video players
Native advertising
Connected TV advertising
Ad spending on short-form videos

Traditional TV advertising video formats broadcasted over traditional transmission channels (e.g., DTT, cable, satellite)
Addressable TV ads, targeted advertising to individual households via set-top boxes; including cable and satellite using addressable technologies such as Dynamic Ad Insertion (DAI)

The Digital Video Advertising market in South Korea has been experiencing significant growth in recent years.

Customer preferences: South Korean consumers have shown a strong preference for digital video advertising due to its convenience and accessibility. With the widespread adoption of smartphones and high-speed internet, consumers are increasingly watching videos online, making digital video advertising an effective way for brands to reach their target audience. Additionally, South Korean consumers are known for their tech-savviness and willingness to embrace new technologies, further driving the demand for digital video advertising.

Trends in the market: One of the key trends in the South Korean Digital Video Advertising market is the shift towards mobile advertising. As more consumers use their smartphones to access online content, advertisers are focusing their efforts on mobile platforms to effectively reach their target audience. This trend is supported by the increasing availability of mobile video ad formats and the development of innovative ad targeting technologies. Another trend in the market is the rise of programmatic advertising. Programmatic advertising allows advertisers to automate the buying and selling of ad inventory, making the process more efficient and cost-effective. This trend is driven by the growing demand for personalized and targeted advertising, as well as the increasing availability of data-driven insights and analytics.

Local special circumstances: South Korea has a highly developed digital infrastructure, with one of the highest internet penetration rates in the world. This provides a favorable environment for the growth of digital video advertising, as it enables seamless streaming and viewing of video content. Additionally, South Korea has a vibrant entertainment industry, with a strong emphasis on video content. This creates a fertile ground for advertisers to leverage popular Korean TV shows, movies, and music videos to engage with consumers.

Underlying macroeconomic factors: The South Korean economy has been experiencing steady growth, which has contributed to the growth of the Digital Video Advertising market. As the economy expands, businesses are allocating more budget towards advertising and marketing, including digital video advertising. Furthermore, the increasing disposable income of South Korean consumers has led to a higher demand for products and services, prompting advertisers to invest in digital video advertising to capture this growing market. In conclusion, the Digital Video Advertising market in South Korea is thriving due to customer preferences for convenience and accessibility, the shift towards mobile advertising, the rise of programmatic advertising, the country's advanced digital infrastructure, and the underlying macroeconomic factors. As these trends continue to evolve, the market is expected to further expand, providing opportunities for both advertisers and brands to effectively engage with South Korean consumers.

Data coverage:

Data encompasses enterprises (B2B). Figures are based on digital video advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers video ad formats (web-based, app-based, social media, and connected devices).

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use market data from industry reports and survey results from our primary research (e.g., Consumer Insights Global Survey) to analyze the markets. Then we benchmark key countries or regions (United States, China, Europe, Asia, and Africa) results with country-specific advertising organizations or associations. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as GDP, internet users, and digital consumer spending.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market. For instance, 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 case market dynamics change.

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

From six-second bumper ads to multi-minute compilations, video marketing is constantly evolving, and audiences everywhere never fail to tune in. As the number of digital video viewers keeps rising every year, marketers embrace video as a promotional tool more vividly than ever. In 2023, digital video ad spending amounted to almost 176.63 billion dollars. Unsurprisingly, the United States remains the country with the highest spending on digital video ads, followed by China and the United Kingdom. Connected TV (CTV) and social video are among the most popular content marketing tactics worldwide, and the post-pandemic era has only consolidated companies’ dependency on these tools.