MAM

Ad spend in Korea up 16.5% to $7.5 bn in 2010

MUMBAI: Korea‘s total ad spending has jumped 16.5 per cent to close 2010 with $7.5 billion, up from $7.1 million posted in the earlier year.


The reasons behind this record ad spending can be found in the recovery of the overall ad market that commenced in the second half of 2009, improved consumer sentiment as a result of the government‘s stimulus policy, and surging expenses on advertisement marketing of companies who made the most of large-scale sporting events as part of their marketing strategy, such as the Vancouver Winter Olympics, the 2010 FIFA World Cup South Africa and the Guangzhou Asian Games.


"All these positive factors have led to the overall growth of every medium," Cheil Worldwide said.
 
Ads on the Internet jumped 24.5 per cent, the highest across all media vehicles. Cable TV ads surged 23.8 per cent while outdoor ads shot up by 19.9 per cent, driving the total ad outlays to rise.


Looking at the actual amount of money executed for ads through each type of media, $1.7 billion was spent on TV, $880 million on newspapers, $1.3 billion on the Internet, followed by cable TV and outdoor.


TV and Newspaper: International sporting events in 2010 such as the Vancouver Winter Olympics and Fifa World Cup South Africa including hosting of the G20 Seoul Summit had positive impacts on terrestrial TV ads.
 
In addition, broadcasting regulations have eased, allowing among other things indirect/virtual ads on TV programmes and the benefits from long-term advertising have diversified, pushing up demand for ads. The ad expenses on terrestrial TV amounted to $1.6 billion, up by 15.5 per cent from the 2009 levels.


Newspaper ads also shot up, thanks mainly to large events, the government‘s aggressive PR efforts for international events, massive ad campaigns by key sectors such as finance, home appliances, ICT, auto including major large corporations.
Newspaper ads amounted to $880 million, up by 9.5 per cent from the 2009 levels, with all types of newspapers - financial, sports, free, local newspapers as well as national dailies.


Cable TV: As programmes made by terrestrial TV stations‘ house program providers such as MBN, YTN, MNET, etc. (Korean channels providing content) and investments made by large programme providers in developing content turned out successful the resulting programs such as highly popular Superstar K - Season II and Rollercoaster helped boost demand for commercials.


Spending on Cable TV ads totaled $862 million, a jump by 23.8 per cent from 2009, and recording the second highest growth rate following the Internet.


Internet: Online advertising recorded the highest growth rate among other media with ad expenditure of $489 million, up by 24.5 per cent from the 2009 levels. The Internet is ranked third in ad expenditure with an 18.3 per cent representation of the entire ad market, following terrestrial TV at 22.8 per cent and newspapers at 19.5 per cent. With the growing importance of online search in ad marketing, search-based ads constituted 67.5 per cent of all online ad spending.


Outdoor advertising: In 2010, highway billboards were allowed again. 3D advertising emerged, 3D-related cinema ads grew and ads on public transportations such as trains and buses increased, all of which pushed up outdoor advertising with a year-on-year growth rate of 19.9 per cent at $710 million.


By sector: The top six sectors with largest ad spending were finance, insurance, and securities; computer and ICT; food and beverage; services; cosmetics and personal hygiene; and fashion.


These six sectors accounted for 53.9 per cent of the entire spending. Sectors where ad outlays declined from the 2009 levels include construction, building materials, real estate, the government and public sector, and the distribution sector, with 24.3 per cent, 7.1 per cent, 4.6 per cent declines recorded respectively.


2011 Outlook on ad expenditure: Economic research institutes forecast a 4 per cent growth for 2011, higher than 2010, though it seems difficult to expect as steep a growth rate as last year as the advertising market growth rate is correlated to economic growth.
 
However, 2011 will witness some positive factors playing out in the advertising market, such as government-driven easing of ad regulations to vitalise the media industry, and market conditions conducive to free competition as a result of introduction of general programming channels and private media representations.


This year sales-promotion style marketing activities are expected to be more frequently used as consumer sentiment will stay contracted and unstable partly due to fewer large-scale sporting events, slowing down of the Chinese economy, tightening by European governments and rising international oil prices.


An analysis of economic growth outlook and survey of advertisers suggests that the overall size of advertising market in 2011 will reach $7.6 billion with an expected growth rate of a minimum of 1.5 per cent to a maximum of 3.5 per cent.


By medium, ad expenditure through four major media (TV, newspaper, magazine, radio) will arrive at $3.7 - $3.8 billion, a similar level as in 2010.


In the meantime, fiercer competition is forecast amongst media as general programming channels will operate in earnest from the third quarter of 2011 and as a result, part of ad demand will move from less competitive media into cable TVs including general programming networks. Outdoor advertising will see increase, thanks to the boom in digital signage commercials of variety led by billboard ads along the highways, cinema commercials, and ads in shopping malls.


The three all-time largest advertisers - financial firms, ICT companies, and car makers - will spend a great deal of money on ads.
 

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/08/23/SVG-Columbus.jpg?itok=MZvkXIIK
SVG Columbus wins Sportzlive's digital duties

SVG Columbus, the data-driven marketing agency from Dentsu Aegis Network, has been appointed as the digital agency for SportzLive's #CueSlam, India’s only Snooker & 9-Ball (Pool) league. The account was won following a direct pitch and will be handled out of the agency’s Delhi office.

MAM Media and Advertising Account
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/08/23/HUNGER.jpg?itok=JwDY_Htn
LG launches #HungerFreeIndia campaign

LG Electronics India has launched the initiative #HungerFreeIndia, dedicated to help eradicate Food Wastage in India. This campaign is inviting the whole nation to come forward and take pledge to avoid food wastage and thus, help eradicate hunger.

MAM Media and Advertising Ad Campaigns
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/08/23/India%20v%20Australia.jpg?itok=ctUxAYXm
Star Sports releases TVC of Kangaroo facing off a Tiger, from 17 Sept

MUMBAI: Star Sports has kicked off its campaign for Paytm India v Australia ODI series with a TVC to depict the two formidable opponents as a Kangaroo facing off a Tiger. The five-match ODI series which will be followed by three T20Is starts on 17 September, 2017. It is claimed that the TVC has...

MAM Media and Advertising Ad Campaigns
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/08/23/Untitled-1.jpg?itok=7LKG6iGA
Be smart in phone buys, say kids in Flipkart TVCs

MUMBAI: Smartphones are a basic necessity today and consumers spend a great deal of time researching on what’s the best model suitable for them. Most consumers often end up questioning their decision when it comes to a smartphone purchase, as they can never be sure if there is a better deal on the...

MAM Media and Advertising Ad Campaigns
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/08/22/pensol.jpg?itok=JPja7hDv
Pensol campaign shows what dreamers could do

Pensol as, created by SoCheers Infotech, aims to create awareness about the quality lubricant products Pensol have been offering over 50 years.

MAM Media and Advertising Ad Campaigns
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/08/22/Barin-Mukherjee.jpg?itok=-rhJhdWo
DigitalF5 bags Mainland China & Oh! Calcutta mandate

DgitalF5, a digital marketing services agency, has acquired the search, content, social media, planning and buying digital media mandate for Speciality Restaurants brands -- Mainland China and Oh! Calcutta, owned by Anjan Chatterjee.

MAM Media and Advertising Account
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/08/22/mufti.jpg?itok=u7OahCZC
Mufti's digital campaign triggers sale

Mufti’s pre-GST sale kicked it up a notch with its digital campaign #MuftiSpinTheDeal, leveraging on social media reach and converting its online audience into actual customers through store visits.

MAM Media and Advertising Ad Campaigns
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/08/22/Kyoorius.jpg?itok=8gadHzXR
Kyoorius unveils its jury, Karen Welman to be foreman

The jury for the fifth edition of the Kyoorius Design has been unveiled. The jury sessions will take place on 15 and 16 September, 2017 at the Ecole Intuit Lab in Mumbai. The Kyoorius Design Awards is the foremost awards for design and visual communication in India. All design work commercially...

MAM Marketing MAM
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/08/21/frzad.jpg?itok=nhuWmuH5
MTV & HP provide ‘Fame-istan’ to budding filmmakers

Freedom of expression is considered to be a basic necessity for human beings to live a full life. It is a reflection of a healthy and democratic nation. More often than not cinema is considered as a classic means of expression of thoughts and freedom. MTV, the voice of the youth, along with HP Inc....

MAM Marketing Brands

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories