From Musinsa to Yanolja... Startups Heating Up Outdoor Advertising

Trenbe, Outdoor Advertising Expenses Soar 7 Times in Second Half... Full-Scale Marketing Starts in September
Musinsa Uses Entire Billboards in Busy Districts to Promote Partner Brands
Yanolja Also Rents All Billboards at Samsung Station... Impact of Platform Competition

Trenbe has recently been actively conducting outdoor advertising centered around buses and bus stops in Seoul. Earlier, Trenbe intensified its marketing by appointing actors Kim Hee-ae and Kim Woo-bin as advertising models in September this year.
[Photo by Lee Jun-hyung]

[Asia Economy Reporter Junhyung Lee] Startups are putting great effort into outdoor advertising. Most startups focusing on promotion through outdoor advertising are B2C (business-to-consumer) platforms where brand image is crucial. As competition for platform dominance intensifies in various fields such as fashion and accommodation, it is analyzed that startups are accelerating efforts to strengthen brand awareness.

According to luxury shopping platform Trenbe in the 13th, the company's budget for outdoor advertising in the second half of this year has increased more than sevenfold compared to the first half. Trenbe has recently been actively conducting outdoor advertisements centered around buses and bus stops in Seoul. A large electronic billboard inside the Express Bus Terminal located in Seocho-gu, Seoul, is also one of the outdoor advertisements utilized by the company.

Hiring 'Top Stars' as Advertising Models

Earlier, Trenbe officially launched its marketing in September by hiring actors Kim Hee-ae and Kim Woo-bin as advertising models. The 22 billion KRW Series C investment secured in March became the foundation for aggressive marketing. A Trenbe official said, “As the luxury shopping platform market and the company size grow, it is natural that marketing expenses increase,” adding, “We expect to conduct more outdoor advertising next year than this year.”

Outdoor advertisement of Musicow at Yeouido Station in the Seoul subway.
Photo by Lee Junhyung

Other startups are also putting effort into outdoor advertising. Music copyright trading platform Musicow accelerated outdoor advertising in August by appointing singers Yoon Jong-shin, Sunmi, and Lee Mujin as advertising models. According to Musicow, the company’s spending on outdoor advertising from March to last month increased about threefold compared to the same period last year. In September, right after recruiting singers like Yoon Jong-shin as advertising models, the company spent the most on outdoor advertising this year.

Utilizing Large Electronic Billboards in Busy Districts

There are cases where entire large electronic billboards in busy districts with heavy foot traffic are used. Musinsa, the leading fashion platform, is a representative example. Since 2018, Musinsa has operated a large electronic billboard at the Sinnonhyeon Station intersection in Gangnam-gu, Seoul. It also uses large electronic billboards at Hongdae and Dosan Park intersections in Seoul to promote brands listed on its platform.

Online accommodation reservation platform Yanolja ran the ‘Yanolja Technology’ campaign in July, renting all electronic billboards inside Samsung Station of the Seoul subway to broadcast advertisements. In addition, the company conducted various outdoor advertisements on buses, subways, and more. A Yanolja official explained, “Yanolja Technology was a large-scale campaign showcasing the company’s new identity,” adding, “Since the campaign aimed to raise public awareness, multiple outdoor advertisements were executed simultaneously.”

A large electronic billboard of Musinsa located at the Sinnonhyeon Station intersection in Gangnam-gu, Seoul. Since 2018, Musinsa has used this billboard to promote brands on its platform.
Photo by Joonhyung Lee

There are also quite a few startups that launched outdoor advertising for the first time this year. Fintech startup Finda, which operates a loan comparison platform, started outdoor advertising in September by airing TV commercials. The company is currently targeting public transportation users by conducting outdoor advertisements in subways, bus stops, and more. Originally, the company had focused on improving service completeness until recently. However, as the accumulated number of downloads surpassed one million last month and the service stabilized, it is interpreted that they began to intensify efforts to promote the company. A Finda official said, “Loan comparison platforms can feel like complicated financial services,” adding, “We wanted to strengthen a friendly image by using TV and outdoor advertisements.”

The heat of platform competition has shifted to marketing competition. Since the outbreak of COVID-19, the explosive growth of online markets such as e-commerce has intensified the struggle for dominance among startups operating platforms. The industry explains that aggressive advertising campaigns are necessary because public recognition can determine the success or failure of dominance competition in B2C platforms. In particular, outdoor advertising is effective in raising company awareness among the general public, unlike online advertising. An industry insider said, “Online ads are exposed mainly to targeted users, so there are limits to expanding awareness,” adding, “Outdoor advertising surprisingly does not require large costs.”