Mobile to surpass web in Korean ad market

Mobile advertising has been expanding fast in South Korea on the back of robust user demand and a growth in mobile payment, with its size to soon eclipse the Internet-based market, data showed Monday. The percentage of mobile advertising expenses spent this year by local companies accounted for 38.4 percent of their total online advertising spending, according to an estimate by market researcher eMarketer Inc. The figure will likely jump to 54.4 percent next year, surpassing that for Internet advertising, the report said. The portion for mobile advertising had only stood at 20.1 percent in 2013, it added.

South Korea, where every eight out of 10 people use a smartphone, has seen a rapid growth in mobile advertising as people tend to consume media or gain information through their handset instead of the Web. A latest report by Digieco, a research center run by South Korea’s mobile carrier KT Corp., showed that Koreans spent 3 hours and 40 minutes daily using their smartphones in 2014, which is 2.5 times longer than the average time logged five years ago.

Propped up by such steady demand, companies’ dependency on mobile advertising in South Korea is expected to hike to as high as 73.2 percent in 2018, the highest in the world, eMarketer said.

For full article, see Yonhap News.

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