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Spending on out-of-home ads in South Korea slipped in 2015, with falling spending on transit ads dragging down increases in billboard and entertainment-area ad spending. But that’s expected to change this year, according to one researcher.
Korea Broadcast Advertising Corp. (KOBACO) found that overall out-of-home ad spending in South Korea dropped by 2.9% last year, to KRW832.5 billion ($735.3 million). Transit ads, which account for more than half of the total, were down by 8.7%. Even a double-digit increase in billboard ad spending could not counteract the decline in transit’s much larger slice of the out-of-home market.
But transit advertising is looking up for 2016, KOBACO reports. The firm expects a 3.1% increase in such ads, to KRW476.4 billion ($420.8 million). Spending on other out-of-home placements will stagnate or drop, leaving a slow 1.4% growth rate for the medium as a whole.
In September 2015, eMarketer forecast steady, slow growth in outdoor ad spending in South Korea, of 1.5% in 2015 and 1.8% in 2016.
Low, single-digit growth rates are not enough for outdoor to maintain its current share of total media ad spending in the country, however. In 2014, outdoor ads accounted for just over 17% of the paid media market. This year, that share will drop to 16.5%, as spending on digital, and especially mobile, ads rises more quickly. By 2019 it will have dropped another point.
ZenithOptimedia, also in September, similarly projected 1.0% growth in outdoor ad spending in South Korea each year from 2015 through 2017.
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