By Kim Chan-souk







Kim Chan-souk

This year Korea's ad market distinguished itself by enjoying solid growth on the back of rapid expansion of the mobile ad market.







Cheil Worldwide, one of Korea's leading ad agencies, expected Korea's total ad expenses would stand at 11.6 trillion won ($10.24 billion) this year, up 4.2 percent from 11.13 trillion won a year earlier.







This year's ad market was affected by slowing domestic economic growth, global-centric marketing by major conglomerates, establishment of mobile ad infrastructure and rapid expansion of ads on the internet and internet protocol television.







Against the backdrop, mobile ads are expected to account for more than 20 percent of the total ad expenses, followed by cable TV with 17 percent, PCs with 15 percent, network TV with 13 percent and newspapers with 12 percent. This will be the first year that digital platform advertising expenses surpass that of broadcasting platforms, such as network and cable TV and radio.







Another noticeable trend this year was that more ads blended in the characteristics of art and drama, coining the term of "artvertising," which is the mix of art and advertising.







Headlining such a move was SK Innovation, which have been releasing ads featuring artists creating their art since 2016. This year, SK Innovation launched a video ad titled "Drawing the big picture of energy and chemicals," featuring an artist using virtual reality technology. The clip drew more than 50 million views in 11 weeks after its launch.







Samsung Electronics shed light on its dramatized commercial series "Ambergris." Of notice was the company was not mentioned during the 40 minute-series, to prevent viewers from being fed up by excessive information, as well as appealing to younger generations. Such ads are expected to play bigger roles in companies PR strategies as brand contents.







This year's advertising keywords can be summarized as "fun, co-prosperity and family." SK hynix launched a PR campaign featuring personified semiconductors and sketched semiconductors' joys and sorrows, as well as highlighting a message that it seeks to build a chip ecosystem through cooperation with partner companies. The concept of humanizing semiconductors was unique and interesting.







SK Telecom highlighted its IT services provide help for police officers and firefighters who are in service for the public safety.







Home materials firm KCC saw its two window ads going viral, drawing a combined 7 million views on YouTube. The ads focused on families' daily lives seen through a window to symbolize that windows not only stop the wind and rain but also protect the warmth of the family.







In advertising policy, the looming implementation of commercial-break ads in network TV was noteworthy this year.







The current broadcasting act enforcement decree allows cable companies to have commercial breaks within one minute for a maximum six times in programs that run 45 minutes or longer, whereas network broadcasters are allowed commercial breaks only during sports broadcasting.







During a National Assembly audit, Korea Communications Commission Chairman Lee Hyo-seong announced that an enforcement decree that permits commercial breaks in network television will be enacted in November. The enactment is expected to draw an end to a decade-long debate over commercial breaks, as well as well as bringing 100 billion won in network commercial revenue.







This year was also marked by discussions on tech-based ads.







SK Broadband introduced Programmatic VOD, which sells ads for VODs online like stock trading.







There were also calls for building an efficient and fair advertising market using blockchain. In November, British blockchain-based ad platform Bidooh signed an MOU with a Korean company, MoFAS, to address problems including excessive ad costs and target appropriateness, by using artificial intelligence, cameras and blockchain.







Celebrating its 30th anniversary, the Korea Advertisers Association proposed to eliminate bad advertising by cooperating with the advertising community and the Korea Internet Corporations Association.







Along with the Korean ad industry, the global advertising environment has also been busy. It is forecast that ad tech companies that converge ads with IT, such as Alibaba, Ten Cent and Bidooh, will surpass American companies and dominate the ad market in the Asia-Pacific region, including China. In the U.S. market, Amazon is threatening the advertising hegemony of Google and Facebook.







This year will be remembered for expanding the horizons of the Korean advertising market while proactively responding to outside challenges.







Kim Chan-souk is professor of advertising and public relations at Cheongju University.

