South Korea’s ad spend forecast to grow by 4.6% in 2021

Fueled by economic recovery hopes and a boost in consumer confidence, South Korea’s ad spend is projected to grow 4.6% year-over-year and record 12.55 trillion won (US$12.25bn), according to Cheil Worldwide.

Digital ad spend is expected to exceed 6 trillion won (US$5.37b) and account for nearly 50% of total ad spend due to the continued growth of video ads.

Meanwhile, broadcast ad spend is expected to grow due to full implementation of in-program advertising in terrestrial TV advertising, and permission to air virtual and indirect advertising of products that previously had restrictions.

Digital ad spend in 2020

In 2020, digital ad spend grew 13% year-over-year, reaching 5.71 trillion won (US$5.11b), accounting for all-time-high 47.6% of all ad spend. Digital ad spend which includes mobile and PC led all ad spend as it grew by 13% year-over-year.

Mobile ad spend recorded 17.5%, totalling 3.85 trillion won (US$3.44b). Search-based ad spend saw 6.6% increase to reach 1.82 trillion won (US$1.63b), while display ad spend recorded 29.4% increase to 2 trillion won (US$1.79b) benefitting from increased demand on video ads.