Tag: mobile marketing industry

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.

Does the mobile marketing industry need more women?

According to a statement that has been issued by the director of digital strategy at Saatchi & Saatchi Los Angeles: yes.

The results of a recent study from Fleishman-Hillard Inc. revealed that throughout the next ten years, there will be a notable shift toward women as the primary consumers in the United States, and mobile marketing will be directly targeting that demographic.

The research showed that two thirds of American consumer wealth will be controlled by the female population.

This trend will represent one of the largest wealth transferences in the history of the nation. The implication that this holds for mobile marketing is that women will become a much more important target, as they will have a great deal more influence on where money is being spent. That said, within that industry, itself, there is a notable shortage of female employees.

Mobile marketing as an industry currently has a gender gap despite the direction that the target market is taking.

Mobile Marketing - WomenThe latest research shows that mobile advertising has yet to find a solid place in the departments and budgets of most companies, as advertisers still don’t feel confident with the effectiveness of the medium or the strategies that should be used to best utilize it. In terms of building it as a part of standard practice, it remains in only the earliest of stages.

That said, mobile ad use is already increasing at an astronomical rate and that is only expected to continue in that direction. eMarketer’s figures have shown that adults in the United States spend one out of every four media usage minutes on their mobile devices. That said, only 9.8 percent of ad buys were directed at that channel, last year.

Moreover, an ExactTarget study that was published in the 2014 Mobile Behavior Report indicated that women are the group that are most likely to follow or like a brand over social media in order to obtain deals, offers, promotions and other types of savings. The figures from that report indicated that 71 percent of women will do this, compared to 63 percent of consumers as a whole.

Still, mobile marketing has not focused on women, specifically, and among the reasons for this, says Saatchi & Saatchi Los Angeles director of digital strategy, Kayla Green , is that there aren’t enough women actually working within this industry. A call has now been made by that director to include women in mobile advertising to a greater degree.