Market Insights Advertising & Media Advertising TV & Video Advertising

Traditional TV Advertising - South Korea

South Korea

Ad spending in the Traditional TV Advertising market in South Korea is forecasted to reach €2.41bn in 2024.
The ad spending is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of 0.33%, leading to a projected market volume of €2.45bn by 2029.
The average ad spending per TV Viewer in the Traditional TV Advertising market in South Korea is projected to be €56.57 in 2024.
By 2029, the number of users in the Traditional TV Advertising market in South Korea is expected to reach 42.8m users.
South Korea's Traditional TV Advertising market is seeing a shift towards targeted digital strategies to reach tech-savvy consumers effectively.

Key regions: Germany, Europe, Japan, United Kingdom, Australia

Definition:
Traditional TV Advertising refers to ad spending on moving image formats broadcasted via traditional transmission channels such as terrestrial and digital terrestrial (DTTV, DTT, DTTB) TV, cable TV, satellite TV, and linear TV delivered via Internet Protocol television (IPTV). Terrestrial television uses traditional antennas that transmit analog signals. Analog terrestrial TV has undergone a digital switchover (DSO) to digital terrestrial TV in most parts of the world. For digital terrestrial TV, television broadcasting stations transmit TV content through radio waves to televisions in households in a digital format. Internet Protocol television (IPTV) refers to the delivery of television content via Internet Protocol networks. IPTV is used in subscriber-based telecommunications networks via set-top boxes or other customer-premises equipment (IPTV is included in the cable revenue split here). Traditional TV Advertising covers all ad spending on pay-TV operators and networks as well as free-to-air networks and free-to-air spin-off digital channels from terrestrial network operators. Usually, the distribution of advertising time in television programs is either carried out by the broadcasters themselves or by marketing agencies.

Structure:

Cable TV signals are transmitted through coaxial or fiber-optic cables directly to each household without the need for external antennas.
Satellite TV includes television programming with the use of communication satellites that transmit to satellite dishes. A dedicated satellite receiver (external set-top boxes or built into TV sets) decodes the television program.
Digital Terrestrial Television (DTT), sometimes known as direct-to-terrestrial television, is a type of television reception in which a signal is transmitted directly to a viewer's antenna rather than through a cable or satellite system. As a rule, HDTV signals are available through digital terrestrial television, and this type of television also makes better use of the radio spectrum.

Additional information:
Traditional TV Advertising comprises advertising spending, users, average revenue per user, and user demographic. The market only displays B2B spending and users. Figures are based on Traditional TV Advertising spending and exclude agency commissions, rebates, production costs, and taxes. For more information on the data displayed, use the info button right next to the boxes.

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Analyst Opinion

The Traditional TV Advertising market in South Korea has been experiencing significant growth in recent years, driven by changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors.

Customer preferences: South Korean consumers have traditionally been avid consumers of television content, with TV being the primary source of entertainment for many households. Despite the emergence of digital platforms and streaming services, traditional TV remains popular, particularly among older demographics. This preference for traditional TV has contributed to the continued demand for TV advertising in the country.

Trends in the market: One of the key trends in the South Korean TV advertising market is the increasing adoption of targeted advertising. Advertisers are leveraging data analytics and audience segmentation techniques to deliver personalized and relevant advertisements to viewers. This trend is driven by the growing availability of consumer data and advancements in technology, allowing advertisers to optimize their advertising campaigns and improve the effectiveness of their messages. Another trend in the market is the integration of digital elements into traditional TV advertising. Advertisers are incorporating interactive features, such as QR codes and social media hashtags, into their TV commercials to engage viewers and encourage them to take immediate action. This integration of digital elements not only enhances the viewer experience but also provides advertisers with valuable data and insights on consumer behavior.

Local special circumstances: South Korea has a highly competitive media landscape, with a wide range of TV channels catering to various demographics and interests. This competition has led to a diversification of advertising formats and strategies, as advertisers strive to differentiate themselves and capture the attention of their target audience. Advertisers in South Korea are increasingly exploring innovative and creative approaches to TV advertising, such as product placements and branded content, to stand out in the crowded market.

Underlying macroeconomic factors: South Korea has a strong economy and a high level of consumer spending, which provides a favorable environment for the TV advertising market. The country's stable economic growth, coupled with a relatively low unemployment rate, has resulted in increased disposable income among consumers. This has translated into higher advertising budgets for businesses, leading to a greater demand for TV advertising. Furthermore, South Korea has a well-developed infrastructure and widespread access to high-speed internet, which has facilitated the growth of digital advertising. Advertisers are increasingly leveraging online platforms and streaming services to reach their target audience, complementing their traditional TV advertising efforts. In conclusion, the Traditional TV Advertising market in South Korea is experiencing growth due to customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. The continued popularity of traditional TV, the adoption of targeted advertising, the integration of digital elements, the competitive media landscape, and the strong economy are all contributing to the development of the market.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on traditional TV advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers non-digital formats such as terrestrial TV, cable TV, satellite TV, and linear TV.

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. 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) 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 GDP, population, media consumption, number of households with television, and 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.