Cheil Worldwide, Domestic Total Advertising Expenditure Settlement and Outlook
Record High Growth Rate Amid Rapid Digital Transformation
Domestic Advertising Market Expected to Increase by 9.3% to 15.2842 Trillion Won This Year
[Asia Economy Reporter Yuri Kim] Cheil Worldwide announced on the 10th that the total domestic advertising expenditure last year was recorded at 13.9889 trillion KRW, a 20.4% increase compared to the previous year. This is the highest growth rate since Cheil Worldwide began compiling total advertising expenditures in 1973. It is analyzed that this high growth was achieved as the advertising market rapidly shifted to digital in response to the COVID-19 situation.
Last year, the digital advertising market grew by 31.5%, surpassing 7 trillion KRW in market size for the first time ever. The market share also exceeded 50% for the first time, reaching 53.7%. Not only the digital advertising market but also broadcasting, print, and OOH (out-of-home) advertising markets all grew compared to the previous year. It is the first time in 10 years since 2011 that all four media sectors recorded positive growth simultaneously compared to the previous year.
The digital advertising market, which played a leading role in the growth of the domestic advertising market last year, was recorded at 7.5118 trillion KRW. Search ads grew by 24.1% to 3.6165 trillion KRW due to the expansion of shopping search ads by e-commerce companies and small to medium-sized advertisers. Exposure ads saw high growth in video ads due to increased digital video usage time on platforms like YouTube. Portal display ads also received a good response from small to medium-sized advertisers, growing 39.3% to 3.8953 trillion KRW.
The broadcasting advertising market grew by 13.4% to 4.02 trillion KRW, returning to the 4 trillion KRW market size for the first time in five years since 2016. The terrestrial TV advertising market recorded 1.3659 trillion KRW, a 17.6% increase influenced by regulatory easing such as the implementation of mid-roll ads for the first time in 48 years. Cable TV (including comprehensive programming channels) grew by 13.7% due to the popularity of drama and golf variety shows on cable channels and trot variety content on comprehensive programming channels.
Meanwhile, the print advertising market was recorded at 1.6609 trillion KRW, with newspaper advertising increasing by 2% to 1.417 trillion KRW and magazine advertising increasing by 2.8% to 243.9 billion KRW.
The OOH advertising market grew by 7.9% to 816.1 billion KRW. Outdoor advertising recovered to pre-COVID-19 levels with a 14.9% growth to 388 billion KRW, driven by the strength of new DOOH (digital out-of-home) media such as vertical electronic billboards and steady demand for lifestyle contact media like apartment LCDs. Transportation advertising grew by 9.6% to 392.6 billion KRW, supported by growth in bus and subway ads. On the other hand, theater advertising declined by 41% to 35.5 billion KRW due to extended strengthened quarantine guidelines following the spread of COVID-19 variants.
Cheil Worldwide forecasts that the advertising market this year will grow by 9.3% compared to the previous year, reaching 15.2842 trillion KRW. The digital advertising market is expected to continue double-digit growth this year with both search and exposure ads growing together. The broadcasting advertising market is expected to maintain its growth trend amid big events such as the Winter Olympics, presidential election, and World Cup. The OOH advertising market, which had a slow recovery due to the prolonged COVID-19 pandemic, is expected to grow in the double digits due to the resumption of with-COVID (gradual return to daily life) and accelerated digitalization of existing media.
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