Market Insights Advertising & Media AR & VR

AR Advertising - South Korea

South Korea

In South Korea, revenue in the AR Advertising market market is projected to reach US$109.9m in 2024.
The revenue in this sector is expected to show an annual growth rate (CAGR 2024-2029) of 9.26%, resulting in a projected market volume of US$171.1m by 2029.
Despite a promising future for AR Advertising market in South Korea, it is noteworthy that most revenue is generated the United States, which has a projected market volume of US$1,224.0m in 2024.
In South Korea, the AR advertising market is witnessing rapid growth, driven by innovative campaigns and increasing consumer engagement through immersive digital experiences.

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Analyst Opinion

The AR Advertising market in South Korea is experiencing significant growth and development due to several key factors.

Customer preferences: South Korean consumers have shown a strong interest in immersive and interactive advertising experiences. They are increasingly seeking out unique and engaging content that goes beyond traditional forms of advertising. AR advertising allows brands to create interactive and personalized experiences that capture the attention of consumers and leave a lasting impression.

Trends in the market: One of the major trends in the AR Advertising market in South Korea is the integration of AR technology into social media platforms. Social media platforms such as Instagram and Snapchat have introduced AR filters and effects that allow users to interact with branded content. This trend has gained popularity among South Korean consumers, who are active users of social media and enjoy sharing their experiences with others. Another trend in the market is the use of AR in retail and e-commerce. South Korean consumers are known for their love of shopping, and AR technology is being used to enhance the shopping experience. Brands are using AR to create virtual fitting rooms, where consumers can try on clothes and accessories virtually before making a purchase. This not only enhances the shopping experience but also reduces the need for physical try-ons, which is particularly important in the current COVID-19 pandemic.

Local special circumstances: South Korea is known for its advanced technology infrastructure and high smartphone penetration rate. This makes it an ideal market for AR advertising, as consumers have easy access to the necessary technology and are familiar with using smartphones for various purposes. Additionally, South Korean consumers are early adopters of new technologies and are generally open to trying new experiences. This has created a favorable environment for the growth of the AR Advertising market in the country.

Underlying macroeconomic factors: The South Korean economy has been growing steadily in recent years, which has led to an increase in consumer spending power. This has created opportunities for brands to invest in innovative advertising strategies, such as AR advertising, to capture the attention of consumers and gain a competitive edge in the market. Additionally, the government of South Korea has been supportive of the development of the AR industry, providing funding and incentives to companies working in this field. This has further fueled the growth of the AR Advertising market in the country.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on AR advertising revenue, which includes pop-up advertising displayed in social media apps, gaming apps, and eCommerce apps as well as advertising that is integrated into the virtual world.

Modeling approach / market size:

The market size is determined through a top-down approach. We use annual financial reports of the market-leading companies and industry associations, as well as third-party studies and reports to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as consumer spending, internet penetration, 4G coverage, and historical developments.

Forecasts:

We apply a variety of forecasting techniques, depending on the behavior of the relevant market. For instance, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption. The main drivers are level of digitalization, adoption of technology, GDP per capita, and internet penetration.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. 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).