Tag: mobile ad trends

Korean mobile advertising marketplace to break 1 trillion won in 2015

A new white paper has been released that shows that the market will grow by 27.2 percent this year.

The Korea Internet & Security Agency has now published its 2015 Korea Internet White Paper, in which it has predicted that the mobile advertising market is going to have grown by 27.2 percent, this year, bringing it to a figure that steps over the 1 trillion won mark.

More specifically, it is forecasted that mobile ads will reach about 1.06 trillion won by the close of 2015.

This equates to about US$897.4 million. It will represent the first time the mobile advertising industry has cracked the one trillion won mark. The complete ad market in Korea is estimated to be worth about 9 trillion won, and the current segment of that figure that belongs to mobile marketing is estimated to be around 8.4 percent. Overall, smartphone and tablet marketing has been crawling upward in the size of the total ad market that it represents.

The growth of the mobile advertising market has boosted the proportion of ad to total sales by around 70 percent.

Mobile Advertising - South KoreaThe three main portal business operators in Korea are: Daum, SK Communication and Naver. Those three companies posted a combined sales of 3.7542 trillion won (which equates to about US$3.18 billion). Of that figure, about 71.4 percent, that is 2.6816 trillion won (or approximately US$2.27 billion) was generated by the advertising sector. SK Communications was the portal that generated the greatest percentage of ad sales, with 84.2 percent. In second place was Naver, with 73.1 percent, and then Daum, which had 64.9 percent.

A rise in the usage of mobile communication and a considerable spike in m-commerce in 2014 were believed to be strongly connected with each other. Last year, there was an increase in overall online shopping by 17.5 percent, bringing it to a total of 45.244 trillion won (which was about US$38.24 billion). That represented a massive 125.8 percent rise over the same figure from 2013.

The overall proportion of shopping transactions that took place over mobile commerce from among the total online shopping transactions increased by 15.7 percent over 2013. These trends indicate that mobile advertising will continue its strong and steady growth to keep up with the shopping trend over the same channel.

Mobile ads are disliked by Boomers

Only a very small percentage of baby boomers have said that they would buy products advertised on smartphones.

Mobile ads have been taking off at an exponential rate in the United States, and as younger device users are enjoying the convenience and ease of m-commerce, baby boomers aren’t nearly as enthusiastic.

People in that generation are far less likely to enjoy receiving advertising when they use their smartphones.

According to the results of a study from eMarketer, almost three out of every four American cellular phone users – that is, 59.3 percent of the entire U.S. population – is a smartphone owner who uses his or her device at least one time every month in 2015. Smartphone penetration is greatest among younger generations. For instance, among device users between the ages of 25 and 34 years old, 90.2 percent have smartphones. Comparatively, in the age group of people aged 65 years and older and who own mobile devices, only 40.7 percent own smartphones that they use at least once monthly. Baby boomers are in the middle of those two groups, with a penetration rate of 64.4 percent.

That said, while they are mostly open to using the tech, they do not like receiving mobile ads.

Mobile Ads - Boomers not a fanResearch conducted by Experian Marketing Services showed that Boomers like mobile ads far less than Generation Xers and Millennials. This study revealed that among baby boomers, only 28 percent agreed that “my mobile phone connects me to my social world.” Among those in Generation X, the figure was 46.2 percent, and among Millennials, it was slightly higher at 53.5 percent.

Baby Boomers were also much less likely to say that they felt that text messages were as meaningful to them as spoken conversations and were less likely to say that they used their mobile phones as their primary devices for accessing the internet.

Still, as much as boomers don’t like mobile ads, they are still considerable buyers of digital content, as about 2 out of every 3 baby boomers will make a digital purchase at some point in 2015, which is only a handful of percentage points behind the leaders, the Millennial generation.