Market Insights Advertising & Media Advertising

Digital Banner Advertising - South Korea

South Korea

Ad spending in the Digital Banner Advertising market in South Korea is forecasted to reach €1.99bn in 2024.
The expected annual growth rate (CAGR 2024-2029) for ad spending is 5.65%, leading to a projected market volume of €2.62bn by 2029.
When compared globally, the United States will dominate in ad spending, reaching €61,600.00m in 2024.
The average ad spending per internet user in the Digital Banner Advertising market in South Korea is projected to be €41.60 in 2024.
By 2029, 64% of total ad spending in the Digital Banner Advertising market in South Korea will be generated through mobile.
South Korea's Digital Banner Advertising market is flourishing due to the increasing popularity of mobile devices and innovative ad formats.

Key regions: India, China, Europe, Japan, United States

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Analyst Opinion

The Digital Banner 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 media consumption, with a high level of internet penetration and smartphone usage in the country. This has led to an increased demand for digital advertising, including banner ads, as companies seek to reach their target audience through online channels. Additionally, South Korean consumers are known to be tech-savvy and receptive to digital advertising, making it an effective marketing tool for businesses operating in the country.

Trends in the market: One of the key trends in the Digital Banner Advertising market in South Korea is the shift towards programmatic advertising. Programmatic advertising allows for more targeted and personalized ads, as it uses data and algorithms to deliver ads to specific individuals based on their demographics, interests, and online behavior. This trend is driven by the increasing availability of data and advancements in technology, which enable advertisers to optimize their campaigns and achieve higher levels of engagement and conversion. Another trend in the market is the growing popularity of mobile advertising. With the widespread adoption of smartphones in South Korea, advertisers are increasingly focusing on mobile platforms to reach their target audience. Mobile banner ads are particularly effective in capturing the attention of consumers on-the-go, as they can be easily displayed on mobile websites and apps. This trend is expected to continue as mobile usage continues to rise in the country.

Local special circumstances: South Korea has a highly competitive digital advertising market, with a large number of players competing for ad space. This has led to the development of innovative and creative advertising strategies to stand out from the competition. Advertisers in South Korea often leverage popular cultural trends, celebrities, and influencers to create engaging and impactful banner ads that resonate with the local audience. This localized approach helps to capture the attention of consumers and drive brand awareness and loyalty.

Underlying macroeconomic factors: The growth of the Digital Banner Advertising market in South Korea is also influenced by the country's strong economic performance. South Korea has a robust and technologically advanced economy, with a high level of disposable income and consumer spending. This provides businesses with the opportunity to invest in digital advertising to promote their products and services to a receptive audience. Additionally, the government has been supportive of the digital advertising industry, implementing policies and initiatives to foster its growth and development. In conclusion, the Digital Banner Advertising market in South Korea is experiencing significant growth due to customer preferences for digital media consumption, the shift towards programmatic advertising, the growing popularity of mobile advertising, local special circumstances such as the use of cultural trends and celebrities in advertising, and underlying macroeconomic factors such as strong economic performance and government support. These factors are driving the development and evolution of the market, creating opportunities for businesses to effectively reach and engage with their target audience through digital banner ads.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on digital banner advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers digital banner advertising on websites accessed via desktop PCs, on mobile-enabled websites, in apps, or on social media.

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.