Digital media landscape kr 140214

KOREAN DIGITAL MEDIA

LANDSCAPE

Feature of Digital Ad market in Korea

Digital Ad Spending

Korean Digital Trend

Top 10 Advertisers and Sites

Ad Networks

Prospect Y2014

INDEX

Korean use digital media widely

96.0 84.1 81.0 79.1

42.3

Iceland Korea US Japan China

[Global internet using rate]

* %, iTU 2012

(Only some parts written)

• 84.1% of Koreans use the internet.

• Korea ranks 20th rank among nations, which

is higher than US and the highest in E.Asia.

• Top of the world for the smart phone using

rate.

Android is used highly in Korea

• 90.7% of Korean use Android OS .

(Approximately 31million users have smart phones used Android .)

• Korean Android using rate is more twice than global avg.

38.1

24.2

37.7

Android

iOS

Other

* %, Stat counter 2013

90.7

8.6 0.7

[Smart phone OS using rate : Global vs Korea]

Naver Daum Google

94.5 81.1

33.8

[Korean top3 portal coverage]

* %, Koreanclick 2013

Naver, Kakaotalk are the most

popular platform in Korea.

• The # of Naver user is over 31million and

95% of Smart phone user use Kakaotalk in

Korea.

• Both are domestic and dominant media in

korea

2012 2013

[Korean Top3 SNS users status]

(Online+Mobile)

* %, Koreanclick 2013

1st 20th 26th 31st 98th

[Global smart phone using rate]

67.6

55.0 54.9

44.0

Korea Norway HK US

* %, Strategy Analytics 2013

(Top3 and US)

Feature of Digital Ad market in Korea

Korean Digital AD Spend

• DA, SA and mobile AD market continue to show growth.

• The digital spending in 2013 is expected to reach 2,517B KRW(16.3% YOY)

and in 2014 to reach 2,931B KRW(16.5% YOY)

• The Mobile AD spending has shown dramatic increases since 2011 and its

proportion in the digital ad will be expanded gradually.

750 825 1,044 1,244 1,295 1,390 1,480

440 418 503

612 659 707 743

- -

1

60 210

420

710

-

500

1,000

1,500

2,000

2,500

3,000

3,500

2008 2009 2010 2011 2012 2013E 2014E

SA DA Mo Terr.TV CATV NP MG

[Media Ad Spend by Year] Bill. KRW

Digital AD

60% 55% 50%

30% 28%

25%

10% 17% 24%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2012 2013E 2014E

Mo

DA

SA

[Digital Ad Proportion by type]

Source : OnlineAD Association, Cheil Communications

Korean Digital Trend

• Now, Internet trend starts to be inclined to the mobile in Korea and opens Mobile era.

• In 2013, wired internet access rate was recorded by 79.8%, fell from 82.1% in 2012,

but access rate via mobile was increased by 91%, from 58.3% in the past year.

• And the using rate of mobile IM has shown a dramatic growth based on the below

chart.

82.1

58.3

79.8

91.0

Wired Internet Mobile Internet

Y2012 Y2013

[Internet Device Usage] [Internet Service Usage]

(%)

84.8

60.1 60.2

82.7

E-mail MobileMassenger

Y2012 Y2013 (%)

Source : Korea Internet & Security Agency 2013

Korean Digital Trend ; Mobile

[ The number of Mobile Users Trend ] [ Smart phone users ]

-

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

Mobile phone users Smart phone users

OS portion of the

mobile users in Korea

Mobile Internet use time

average of 1 week

1 week average

Download app number

APPS.

• Appox. 67% of mobile phone user uses ‘Smart Phone’.

• The smart phone user is increasing, but whole mobile phone user is steady.

• Android OS holds more than 90% of the M/S

• Average Weekly Mobile Web Usage time is 102 Minutes

Source : Ministry of Science, ICT and Future Planning (2013. 7) / 한국 모바일 소비자의 이해 2013

40 11 3 설치한 앱 수(평균)

최근 한 달간 사용한 앱 수

설치 한 유료 앱 수 (평균)

Portal and Search Engine

Media

Site Traffic Search Engine M/S (%)

PC Mobile PC Mobile

UV PV UV PV M/S (%) M/S (%)

31,279,248 19,887,393,097 16,595,659 6,385,120,960 77.91 75.99

26,840,989 10,890,894,501 12,643,650 2,553,040,522 16.11 10.18

11,182,981 346,314,366 8,463,028 167,547,054 3.66 7.40

• Naver is the dominant portal in Korea, it ranks the 1st in traffic and search engine M/S.

• M.Naver(mobile) is also 1st in the mobile web traffic

• Google holds low market share and Yahoo! was withdrew from the Korean market in

Dec 2012.

Source : Koreanclick 2013. 11 (The mobile data not included IOS data)

Portal

• Main Page : 대부분의 인터넷 유저들이 방문하기 때문에 Branding 효과

1. 타임보드 : 시간 고정 2. 롤링보드 : 주단위 판매

1. 초기배너 : 주단위판매 2. 브랜딩스테이션 : ½일 고정

Portal

• 매우 다양한 형태가 존재하며, Creative에 맞는 Type을 결정

(특수형의 경우는 보통 기본단가에 20% 할증)

▶더블앤 DEMO 클릭!

http://demo.ad.naver.com/da2/?u=002X&d=doublen&v=demo

Portal

• 매우 다양한 형태가 존재하며, Creative에 맞는 Type을 결정

(특수형의 경우는 보통 기본단가에 20% 할증)

▶크래쉬 DEMO 클릭!

http://preview.ad.daum.net/?loc=2&contentSeq=234120

Portal

• 브랜드검색 : 브랜드 관련 키워드검색결과 페이지의 최상단에 노출

프리미엄형

라이트형

키워드:

브랜드와 직접적인 관련이 있어야 되며, 소재 내에 내용이 있는

키워드들만 사용가능

단가:

사용하는 키워드들의 쿼리수 합산으로 단가 결정

네이버 최소 400만원 / 다음 500만원

*네이버 라이트형은 최소 50만원

SNS status

[ Monthly duration (min.) in Mobile app. ] [ Monthly Mobile app. UV ]

16,928

8,964 8,843

2,375 1,775

-

4,000

8,000

12,000

16,000

20,000

KakaoStory Band Favebook Cyworld Twitter

467.05

221.90 184.40 169.54

49.62

0

100

200

300

400

500

FaceBook Kakao Story Twitter Band Cyworld


• Big SNS(micro blog) sites in Korea are Facebook, Kakao story and Band based on the

below chart.

• The highest *UV is Kakao story and the most usage time is Facebook in SNS.

• SNS is being used as a online marketing and communication tool between Brand and

Customers in Korea.

(Kakao Story and Band can be used through only mobile App.) * UV is based on only mobile App. data

Top 10 Advertisers in DA

[ Ad Spending Top 10 by Category in 2013YTD ] [ Ad Spending Top 10 by Advertiser in 2013YTD ]

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

* Mil. KRW

-

5,000

10,000

15,000

20,000

25,000

* Mil. KRW

• Ad spending(for only DA) top 3 categories are IT, Commerce and Service.

• Many commerce advertisers like Gmarket&Auction are ranked in the top 10,

and 3 Samsung are ranked in the top 10.

Source : Research AD (2013. 1~ 11)

Top 10 SITEs in PC

• Naver and Daum are the dominant portals in Korea, rank the 1st and 2nd on UV & PV.

• Another sites of top 10 are commerce, video and news sites.

• 3 portal sites(Naver, Daum, Nate) take more than 90% of top 10 sites Ad spending for

DA.

Source : Kotreanlclick 2013, 11 and Research AD (2013. 1~ 11),

[Top 10 Site in PC - UV & PV] [Top 10 Site – Spending in 2013YTD]

-

5,000

10,000

15,000

20,000

25,000

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000UV PV

-

50

100

150

200

250

Thousand Million * Mil. KRW

take more than 90%

Top 10 SITEs in Mobile

• Traffic rank of Mobile Web is similar to PC and most of Top 10 site are the portal,

commerce and social media site.

• The App using the most time is Kakaotalk, also the most of the installation excluded Apps

set basically by provider like Android market, Address list.


[Mobile Web UV & PV] [Mobile App Time Spent & Installation]

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

UV PV

Thousand Million

Rank Application Total Time Spent

(Min / *1000) Unique

Installer

1 Kakaotalk 378,761 23,755,894

2 Naver 171,252 16,292,104

3 Android address List 56,188 24,020,382

4 Kakao Story 52,844 18,206,768

5 YouTube 40,057 24,066,311

6 Samsung Alarm/Clock 17,946 15,068,977

7 Android Market 13,769 24,186,825

8 Samsung Camera 6,700 15,270,474

9 Calendar 5,475 23,560,822

10 Google Search 2,109 23,713,082

94%

11% 2%

-

50

100

150

200

250

300

350

400

450

0%

20%

40%

60%

80%

100%

Kakaotalk Line Whatsapp

Korean % Global Users

Mobile IM Status

• Kakaotalk is the best popular IM and using rate is over 90% of the smart phone users in

Korea and Kakaotalk PC version was launched in Mar 2013, it opens mobile-PC united

IM era.

• Line from Naver and Mypeople from Daum have only lower number of users.

*Whatsapp has not released Korean users data, but its proportion is only 2% in Korea.

[Mobile IM Global User & Korean User(%)]

Million

35,000

7,000

27,000

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

Kakaotalk Line Mypeople

[The user number of IM in Korea (2013.11)]

Thousand

Source : Onavo 2013. 08, The combination of articles.

Ad Network Trend

• Ad Network의 시작

Ad Network Trend ; PC

• Each Ad Network has their own unique feature and is selected and executed by type of

targeting tactics and level.

• Ad network Ad spending is increasing in 2013, and expect to increase continuously in

2014, based on below the chart, GDN and Ntree spending.

Network Targeting Tactics Networked Sites

Re-Targeting

Portal, News, etc

Approx. 100

GDN(Google Display AD)

Context/Sites/Interest

Re-marketing

Blog, News, etc

Approx. 50,000

Contextual Targeting

News sites

Approx. 30

RT(Re-targeting)

RT plus, A.RT

Nate, Joins, imbc, etc

Approx. 15

and DC adx, FBX

Other video

network FIVA, CSA News Sites, Etc.

[Ad Network Feature] [Monthly GDN/Ntree spending in Nasmedia]

Source : Nasmedia Internal data

-

50

100

150

200

250

300

350

400

-

200

400

600

800

1,000

1,200

1,400

1,600

Jan

Feb

Ma

r

Apr

Ma

y

Jun

Jul

Aug

Sep

Oct

No

v

De

c

14

-Jan

14

-Fe

b

14

-Mar

GDN ntree

*Mill.

(KRW) *Mill.

(KRW)

http://www.criteo.com/kr

Ad Network Trend ; Mobile

Ad Network for Banner CPI Lock Screen

Ad@m Cauly Admob Inmobi Adlatte TNK Adpopcorn Cashslide Cashup

Number of Apps

Networked

8,000+

M. Daum web 10,000 50,000 12,000 Independent 1,000 90 Independent Independent

Monthly PV 15B 12B 9B 8B 350,000

(DAU)

600,000 (DAU)

3,000,000 (DAU)

2,000,000

(DAU)

500,000 (DAU)

App vs Web

Ratio 45% : 55% 90% : 10% 99% : 1% 80% : 20% Only App Only App Only App Only App Only App

OS Ratio

(iOS : android) 15% : 85% 10% : 90% 30% : 70% 10% : 90% unknown 10% : 90% 10% : 90% Only Android Only Android

[ Mobile Ad network & media Feature ]

• Mobile Ads are classified as Banner, CPI and Lock screen by execution type.

• If the marketing goal is maximizing the traffic or event participation, will use Ad networks

for Banner.

And CPI and Lock screen are executed in order to maximize App installation.

(only top tiers written)

DAU; Daily Active User

Ad Network / Ad Exchange

Source : baekdal.com 2009 | http://www.baekdal.com/analysis/market-of-information/

• Where is Everyone?

• AD Network의 발전

Inventory Level Revenue

Premium Inventory

Intermediate

Level

Inventory

Remnant Inventory

unsold

60%

30%

10%

가치를 부여해서 수익을 확장



• Ad Exchange




• RTB(Real-Time Bidding) / Second Price; 차 순위를 이길 수 있는 최소단위로 Pay

• Ad Exchange / DSP 역사


In Korea


• 국내 Ad Network (Ad Exchange를 통한)

Re-targeting

Dynamic Creative

Context/Sites/Interest

Re-targeting

RT plus,

A.RT (Re-targeting)

PROSPECT Y2014

• Increase sponsorship Ad products due to big sports events in 2014.

; Sochi winter Olympics, Brazil Worldcup and popularity of Korean baseball and MLB.

• Various sites open the pages related to sports events and

expect that big advertisers will launch the sponsorship ad to secure high traffic.

• Their brand awareness and preference will be increased by natural exposure of brand

during the period of sports events.

1. Increase of Sports sponsorship Ad

[Cases using Sponsorship Page]

Case of special page

for World cup Case of special page

for Winter Olympic game

Case of special page

for Baseball game season

2. Enlargement of Video Ad market

• Expect that the video ad spending and number will incline continuously in 2014.

• Recently, due to the Youtube growth, video ad achieved a rebound from the recent

decline.

• The mobile video service showed a growth, because of real time accessibility which is

an advantage of the smart phone.

0

200

400

600

800

1,000

1,200

1,400

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000Ad Spending(x000) Number of ad

-

5

10

15

20

-

100

200

300

400

500

Mobile Video - Average Duration time (m)

PC Video - Average Play time (m)

Source : : Research AD, Koreanclick, Nasmedia internal data

[Monthly Video Ad Spending Trend] [Monthly Video Media Avg. Duration Time Trend ]

3. Narrowcast in Mobile Ad market

• The Mobile ad is catching up with the Online ad.

Early on, focused on delivering lots of ads to all users, but now important is to find

proper target users.

• Expect that mobile publishers or data analysis agencies research and develop the

various targeting tactics based on their tracking solutions since 2014.

[Mobile Ad Targeting] [Mobile App. Tracking solution]

AS is

To be

Only basic tactics

App category, Device, OS

Time, Day, Frequency

- Interest and similar user

- Re-targeting

For users who visited a website(or App.)

For users who not visited a website(or App.)

For users who visited a website via PC

etc..

Ad Tracker

T-MAT

Party Track

Ad-x Tracking

HasOffers (partnership)

launched in 2012.5

launched in 2013.7

launched in 2013.10

launched in 2013.4

launched in 2013.11

(merged)

E O D

Digital media landscape kr 140214

Marketing

ad network

digital ad

included ios

smart phone

nasmedia internal

korean digital

mobile phone

smart phone