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By Kim Chan-souk
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NH analysts forecast that the Korean advertising market will grow 4.9 percent compared to the previous year, its market size adding up to 11.5 trillion won. This is the highest growth rate since 2012, as it had lingered at around 1 percent to 3 percent over the last four years.
The upward trend, however, is led mainly by the surprising increase in demand for advertising in new media such as cable, internet protocol and mobile TV services. The outlook for the market in conventional media such as newspapers, magazines, television and radio remains dim. Advertising expenditure on conventional media was 4.01 trillion won, taking up 34.7 percent of the market, while that of digital media took 31.7percent, reaching 3.63 trillion won. Digital media, along with new media is anticipated to be the main benefiter of the expenditure.
In its global advertising expenditure forecasts, Zenith announced that internet advertising will overtake that of televisions in 2017, and social media newspaper in 2019.
The most notable among the keywords in the advertising market would be "collaboration." Collaboration between different media and ideas has been deepening the relationship between advertisers and their consumers. TBWA, with the slogan "All shoes in the world," for instance, collaborated with Facebook to create an advertisement that the mobile environment demands.
Technology has been the central keyword in Korea's advertising market. The importance of technology has been steadily dealt with in advertising to date, but human-tech, an interaction between people and technology, was exceptionally underscored this year. Samsung and KT exemplify such a move in their recent work. Samsung promoted its laundry machine, FlexWash through a family story in which high-end technology superbly merges into people's lives. KT's ad, "5G for PyeongChang," has also drawn public attention as it suitably intertwines technology with people's daily lives.
Marketing strategy in the digital era has been discussed repeatedly, a recent publication being "Digital Marketing Conference 2017." Artificial intelligence, data and content have been the main theme of such discussions as these will be the basic components of future business.
KaKao talk, a multi-platform texting app provider, showcased its advertising platform, "Open Beta Test." This advertising platform utilizes big data analysis and artificial intelligence technology to match customers with ads.
From a policy perspective, the necessity for a price supervision system has been reviewed to strengthen social responsibility of portals as public property.
Recording the highest growth over the past five years, Korea's advertising market has been entering the Fourth Industrial Revolution. A higher standard for advertising media as social property has also been highlighted this year.
Professor of Advertising & Public Relations Dept. of Cheongju University
