Market Insights Advertising & Media AR & VR

VR Advertising - South Korea

South Korea

Revenue in the VR Advertising market market in South Korea is projected to reach €3.2m in 2024.
Revenue in this sector is expected to exhibit an annual growth rate (CAGR 2024-2029) of 1.15%, which will lead to a projected market volume of €3.4m by 2029.
Although a projected market volume of €43.5m in 2024 indicates substantial revenue generation, most of this revenue is anticipated to be concentrated the United States.
In South Korea, the burgeoning VR advertising market is increasingly leveraging the nation's advanced technology infrastructure to create immersive consumer experiences.

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Analyst Opinion

The VR Advertising market in South Korea is experiencing steady growth and development, driven by customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. Customer preferences in South Korea are playing a significant role in the growth of the VR Advertising market.

South Korean consumers are known for their high adoption of technology and their enthusiasm for immersive experiences. Virtual reality (VR) technology provides a unique and interactive way for brands to engage with their target audience, creating a more personalized and engaging advertising experience. This aligns well with the preferences of South Korean consumers, who value innovative and interactive advertising campaigns.

Trends in the market further contribute to the growth of VR Advertising in South Korea. As VR technology becomes more accessible and affordable, more businesses are incorporating it into their marketing strategies. The use of VR in advertising allows brands to stand out from their competitors and create memorable experiences for consumers.

Additionally, advancements in VR technology, such as improved graphics and motion tracking, enhance the immersive nature of VR Advertising, making it even more appealing to both brands and consumers. Local special circumstances in South Korea also contribute to the development of the VR Advertising market. South Korea is known for its strong gaming industry and technological advancements.

This provides a solid foundation for the growth of VR Advertising, as the country already has a skilled workforce and infrastructure in place to support the development and implementation of VR technology. Furthermore, South Korea has a large and tech-savvy population, making it an ideal market for VR Advertising. Underlying macroeconomic factors also play a role in the growth of the VR Advertising market in South Korea.

The country has a strong economy and a high level of consumer spending, which provides a favorable environment for businesses to invest in innovative advertising strategies. Additionally, South Korea has a well-developed digital infrastructure, including high-speed internet and widespread smartphone adoption, which further supports the growth of VR Advertising. In conclusion, the VR Advertising market in South Korea is experiencing growth and development due to customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.

The high adoption of technology and enthusiasm for immersive experiences among South Korean consumers, along with advancements in VR technology and a strong gaming industry, contribute to the growth of the market. Furthermore, the country's strong economy and well-developed digital infrastructure provide a favorable environment for businesses to invest in VR Advertising.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on VR advertising revenue, which includes advertising that is integrated into the virtual world within video games and videos.

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).