Korea market overview v1 nov 2013

-­‐  KEY  STATISTICS  -­‐  

KOREA  ADVERTISING  MARKET  OVERVIEW  

Nov 2013

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KR  Online  User  Overview  

PC  User:  33,000,000  PC  Game  User:  10,210,000  

Mobile  User:  35,500,000  Mobile  Game  User:  19,480,000  

q  The  number  of  mobile  users  in  KR  surpassed  PC.  

q  PC  gamer  were  around  10  million  but  mobile  gamers  are  expected  to  more  than  double  to  reach  19  million  people.  

* Data source: 미래창조과학부 유무선 통신서비스 가입자 현황(2013.06), Koreanclick 인터넷 사용인구 모집단 (2013.07), Behavioral data (2013.1)

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q  Digital  adverPsing  is  forecast  to  generate  USD  9.0B  (YoY  +2.4%)  revenues  in  2013.  Online  Ad  spend  is  predicted  to  reach  24.7%,  higher  than  TV  media.  

KR  Digital  Ad  Spend  Overview  

8.8  

9.0  

2012Y   2013Y(E)  

24.7%

15.5%

21.2%

4.9%

17.6%

12.3%

2.6% 1.3%

Total  Digital  Ad  Spend   2013Y(E)  Ad  spend  by  media  type  Unit:  1B  USD  

* Data source: KOBACO, Korea Advertising Index

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Mobile  Display  Ad  

Mobile  Display  Ad  

Mobile  Search  Ad  

Mobile  Search  Ad  

 -­‐    

 500    

 1,000    

 1,500    

 2,000    

 2,500    

2012Y   2013Y(E)  

Mobile  Search  Ad   Search  Ad  

Mobile  Display  Ad   Display  Ad  

KR  Online  Ad  Spend  

q  Online  adverPsing  is  forecast  to  generate  USD  2,192M  (+13%)  revenues  in  2013  

q  Mobile  ad  spend  may  have  increased  by  73%  and  120%  with  search  and  display  but  the  country's  mobile  ad  revenues  sPll  only  amounted  to  around  USD  378M.  

2012Y   2013Y(E)   YoY  Display  Ad    549    559   2%  Mobile  Display  Ad    82     181   120%  Search  Ad    1,199    1,255   5%  Mobile  Search  Ad    114      197     73%  Total  Spending    1,944     2,192   13%  

*Unit:  1M  USD  

+73%  

+120%  

*Data source: HSAd 2013 Media Scene, 한국인터넷진흥원, 방송통신위원회, 한국광고협회 2012 온라인광고규모조사

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Top  3  Portal  Revenue  Share    

q  Naver  has  the  dominant  posiPon  in  KR  both  search  and  display  market.  

 302    

 60    

 12    

 79    

 52    

 11    

 -­‐    

 50    

 100    

 150    

 200    

 250    

 300    

 350    

Naver   Daum   Nate  

Search  

Display  

Others  

Game  

Line  

657M  

120M  

33M  

*Unit:  1M  USD  2013Y  1H  Revenue  

*Data source: NHN, Daum, SKcommunication

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KR  Online  Display  Ad  Spend  

q  Major  portals  possess  78%  of  display  ad  market.  

naver,  34.7%  

daum,  29.0%  

nate,  14.2%  

joins,  2.6%  

chosun,  1.1%  

facebook,  1.1%   others,  

17.3%  

naver   daum   nate   joins  

chosun   facebook   others  

Display  Ad  Spend  (1H  2013)  

* Data source: ResearchAd, Jul 2013

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Search  Query  Share  

q  Naver.com  is  the  top  search  engine  both  PC  and  mobile,  used  by  over  76%  of  the  country’s  users.  

q  Google  search  penetraPon  is  low  with  4%  of  PC  and  9%  of  mobile.  Yahoo  has  withdrawn  its  operaPon  in  KR  since  Q4  2012.    

Naver,  78.37%  

Daum,  14.77%  

Google,  4.04%  

Nate,  1.13%  

Others,  1.52%  

Naver,  76.50%  

Daum,  14.11%  

Google,  8.98%  

Other,  0.41%  

PC  Search   Mobile  Search  

* Data source: Koreanclick, Apr 2013

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Search  Query  Growth  Trend  

q  Naver’s  mobile  search  queries  surpassed  PC  since  Q4  2012.  The  proporPon  has  reached  53%  on  Aug  2013.  

* Data source: NHN corporate presentation

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Mobile  OS  Market  Share  

q  Korea's  Android  OS  penetraPon  stands  over  90%,  the  highest  in  the  world.  

16.3%  

56.7%  

52.7%  

8.5%  

69.4%  

42.4%  

38.8%  

90.4%  

China  

Japan  

USA  

Korea  

Android  

iOS  

Other  

* Data source: StatCounter Global Stats, Jul to Sep 2013

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