Last Year Domestic Broadcasting and Telecommunications Advertising Expenses 14.4 Trillion Won... Online Advertising Up 14%

[Asia Economy Reporter Seulgina Jo] Last year, domestic broadcasting and telecommunications advertising expenses reached 14.4 trillion KRW, showing nearly 5% growth compared to the previous year. In particular, the growth rate of online advertising expenses showed double digits.

The Ministry of Science and ICT and the Korea Broadcast Advertising Corporation (KOBACO) announced the results of the "2020 Broadcasting and Telecommunications Advertising Expenses Survey" on the 28th, which includes the status of the domestic broadcasting and telecommunications advertising market in 2019 and forecasts for 2020-2021.

According to the survey results, based on last year, domestic broadcasting and telecommunications advertising expenses increased by 4.9% compared to the previous year, totaling 14.4269 trillion KRW. By media type, broadcast advertising expenses decreased by 4.1% to 3.771 trillion KRW, showing a continuous decline since 2016. The decrease in terrestrial TV advertising revenue (1.2447 trillion KRW) reached -12.5%, which was analyzed as a major factor in the overall decline of broadcast advertising expenses.

On the other hand, online advertising expenses (6.5219 trillion KRW) increased by 14.1% compared to the previous year. The share of mobile advertising expenses accounted for 71.3%, and internet (PC-based) advertising expenses accounted for 28.7%. In particular, the scale of mobile advertising expenses increased by 27.0% year-on-year to 4.6503 trillion KRW, surpassing the total broadcast advertising expenses (3.771 trillion KRW). Internet advertising expenses decreased by 8.9% to 1.8716 trillion KRW.

Print advertising expenses amounted to 2.373 trillion KRW, increasing by 1.1% compared to the previous year. Newspaper advertising expenses (1.9397 trillion KRW, 1.9%↑), which have a large share (81.7%), led the increase.

Outdoor advertising expenses (1.2567 trillion KRW) decreased by 5.5%, while other advertising expenses such as lifestyle and employment information (504.3 billion KRW) increased by 17.5%.

Meanwhile, the number of workers in the domestic advertising market in 2019 was counted at a total of 25,082. It was found that workers in the print advertising market, such as newspapers and magazines, accounted for the largest share at 56.8% of all workers.