Korean Online Video Ad Trends
Get ready to dive into the thrilling world of online advertising in South Korea! This industry is booming, raking in billions of dollars each year, and it’s only getting bigger with the surge of digital consumers. Brace yourself for some mind-blowing stats!
According to the Korea Online Ad Association, online advertising spending skyrocketed by a jaw-dropping 21% in 2019 alone. Can you believe that? And get this, it accounted for 48% of the entire advertising spending in the country. That’s like half of all the advertising dough being poured into the online world.
But hold on, things took a thrilling twist in 2020. With the pandemic wreaking havoc on businesses, advertising budgets had to become strategic. And guess what? Mobile online advertising took center stage. Why? Well, it’s simple! People were spending more time at home, glued to their phones for entertainment. So, smart businesses seized this golden opportunity to target those audiences. But that’s not all!
Outdoor advertising, on the other hand, took a wild nosedive. Picture this: a swift and sharp drop in spending. Yep, it was a rollercoaster ride for outdoor advertisers. But fear not, a new hero emerged during the pandemic: online video advertisements. These bad boys became the ultimate weapon to reach users in their homes. South Korean brands caught on quickly and pumped up their spending on these captivating online video ads.
Are you still with us? We’re about to spill the beans on where and how the top brands in South Korea splash their cash to promote themselves. Buckle up, because this is where things get seriously awesome!
Korean Online Ad Evolution
1. Korean Online Video Advertising Market Size
2. The Top 10 Media for Online Video Ads
3. The Top 10 Spending Companies for Online Video Ads
4. The Top 10 Spending Industries for Online Video Ads
5. The Future of Online Video Advertising in Korea
Korean Online Video Advertising Market Size
Hold on tight, because we’re about to take a thrilling journey through the ups and downs of COVID-19 and its impact on the world of online video advertising in South Korea.
Let’s go back to July 2020 when the number of COVID-19 cases was relatively low and the general belief was that it was “under control.” Ah, those were the days. But little did we know, things were about to take a wild turn. In March, the outbreak reached its peak with a staggering 851 cases in a single day. That’s right, the battle had begun.
But fear not, because South Korea kicked into high gear with aggressive tracing mechanisms. They were on a mission. Throughout the summer, the number of cases hovered around 50 per day. It seemed like smooth sailing, until… the “second wave” hit in mid-August. And it didn’t stop there. This wave continued with a vengeance until the end of September.
Then came the fall season, a time of worry and uncertainty. The numbers were lower, but they kept fluctuating, keeping everyone on their toes. But hold on tight, because the most serious wave was yet to come. Winter arrived, and with it, the dreaded “third wave.” Daily cases shot up to a staggering 1,000 cases per day. It was a battle against an invisible enemy, my friend.
As restrictions tightened and people found themselves spending unprecedented amounts of time at home, the world of online video advertising felt the impact. Take a look at the graph below, and you’ll see the correlation between the number of cases and the money spent on online video ads.
Now, let’s break down the numbers. In the summer, spending on advertising was relatively lower compared to the following months. But once the first wave hit, something incredible happened. Online video ad spending surged from 94.1 billion KRW in August ’20 to a staggering 101.4 billion KRW in September ’20.
But hold onto your hats, because the winter season brought even more spending. Brands saw the golden opportunity to reach people who were spending endless hours on the internet. So, the spending on online video ads soared to new heights. By the end of 2020, the spending had reached a jaw-dropping 112.5 billion KRW, an 18 billion KRW increase from July 2020. Can you believe it?
So there you have it. The tale of how COVID-19 waves and the rise of online video ads collided in South Korea. It’s a story of resilience, adaptability, and seizing opportunities in the face of adversity.
The Top 10 Media for Online Video Ads
When it comes to social media, three powerhouses reign supreme: YouTube, Facebook, and Instagram. These platforms have captured the hearts and minds of the Korean population like never before. In fact, a mind-blowing KISDI report revealed that a whopping 52.4% of Koreans owned some form of social media in 2020. Can you believe it? That’s more than half the country hooked on social media!
Now, let’s talk about the COVID-19 outbreak. It was like pouring fuel on an already blazing fire. The usage of the internet and social media applications skyrocketed, as people sought connection, entertainment, and information during these challenging times. Social media became a lifeline.
According to data from the country’s 33.7 million Android smartphone users, YouTube emerged as the undisputed champion. In September, users spent 53.1 billion minutes on YouTube, compared to 44.3 billion minutes the previous year. That’s a 20% increase! It’s like the entire nation was glued to their screens, consuming captivating content on YouTube.
But wait, there’s more! Feast your eyes on the chart below. It reveals a comparison of spending on online video ads across major media platforms in South Korea during the months of November and December.
In December, a Korean platform streaming service called Tving, often compared to Netflix, took center stage. They recorded the highest video ad revenue growth among the top 10 media companies. Their revenue soared by a staggering 18.1% from the previous month. Talk about a skyrocketing success!
But Tving wasn’t the only player making waves. Facebook, Daum (a domestic search engine), and GOMTV (a live streaming platform) also experienced an increase in video ad revenue in December. It was like a grand symphony of success for these platforms, captivating audiences and advertisers alike.
The Top 10 Spending Companies for Online Video Ads
Take a look at the chart below, and you’ll discover the companies that are investing the most in online video advertising in South Korea. But here’s the twist: almost all of the advertisers, except for LG Electronics and Samsung Electronics, have increased their spending compared to December. It’s like a race to capture the attention of online audiences!
But hold onto your hats, because there are some real standout performers in this star-studded lineup. First up is Megastudy Education, and boy, did they make a splash! They recorded an astonishing growth rate of 272.8% among the top 10 media companies. How did they do it? Well, they ramped up their existing campaigns, such as “elihigh,” an interactive education platform for children. It seems like the transition to online and remote learning played a major role in skyrocketing the usage of education applications.
And it doesn’t stop there. Nexon, the Korean–Japanese video game publisher, also turned heads with a remarkable 166.6% increase in advertising spending. Why? The answer is simple: the usage of games went through the roof during the COVID-19 pandemic. As people sought entertainment and escape, the world of gaming provided solace and excitement. It’s a trend that captured the attention of advertisers and players alike.
But wait, there’s more! Dyson and Pulmuone, two powerhouse brands, also saw a surge in their advertising spending for online video ads in December. Why? Well, the demand for their products shot up. As people spent more time at home, they turned to Dyson for innovative home appliances and Pulmuone for their food products. It was a match made in advertising heaven.
The Top 10 Spending Industries for Online Video Ads
Out of the 10 industries, we’ve got some winners and some… well, let’s just say they took a different path. Five industries increased their spending on advertising compared to the previous month, while the other five decided to take a step back. It’s like a battle of strategies in the world of online video ads!
Let’s start with the industries that ramped up their advertising spending. The Education and Welfare industry took the crown! They recorded a growth rate of 61.8%. They’re investing heavily in spreading the word and capturing the attention of eager learners and supporters.
But wait, there’s more to the story. The Pharmaceutical and Medical industry decided to take a different approach. They significantly decreased their spending on advertising. Why? Well, it seems like during the COVID-19 era, people needed less convincing when it came to buying products related to this industry. The focus shifted, and the demand spoke for itself.
The Future of Online Video Advertising in Korea
South Korea’s multi-billion dollar online advertising industry is one of the biggest in the world, and it has grown nearly every single year in the past two decades. Since 2015, online ads on mobile and dekstop have surpassed all other methods of advertising, like print and outdoor advertising.
Online video ads specifically, are becoming more and more important to brands looking to make a lasting impression on consumers. With more advances in technology, online video ads are more clever and popular than ever before. For example, users are 3 times more likely to watch YouTube ads vs. TV ads.
Both big and small companies in Korea were seen branching out and spending more for online video ads. When looking at the top 10 industries and the trends on online video ads, it was observed that half increased their spending, and the other half decreased their spending on advertisements. This is a prime example of how COVID-19 has affected industries in drastically different ways.
Brands that are looking to expand to the Korean market should most definitely explore options to incorporate a video ad on YouTube.
To learn more about advertising and marketing trends in Korea, check the AJ Marketing Blog.
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South Korea’s Social Media Trends in 2020
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