Market Insights Advertising & Media Advertising

Influencer Advertising - South Korea

South Korea

Ad spending in the Influencer Advertising market in South Korea is forecasted to reach €401.70m in 2024.
Ad spending is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of 11.15%, leading to an estimated market volume of €681.60m by 2029.
The average ad spending per internet user in the Influencer Advertising market in South Korea is projected to be €8.39 in 2024.
When compared globally, the highest ad spending is expected to come from China (€17,770.00m in 2024).
South Korea's Influencer Advertising market is booming, with brands leveraging K-pop idols to reach a global audience effectively.

Key regions: Australia, Germany, France, Europe, United States

Marché

Région

Comparaison de régions

Monnaie

Analyst Opinion

The Influencer Advertising market in South Korea is experiencing significant growth and development.

Customer preferences: Customers in South Korea are increasingly turning to social media platforms and influencers for product recommendations and reviews. Influencers are seen as trusted sources of information and their recommendations carry significant weight in the purchasing decisions of consumers. As a result, brands are investing more in influencer advertising to reach their target audience and build brand awareness.

Trends in the market: One of the key trends in the influencer advertising market in South Korea is the rise of micro-influencers. These are individuals with a smaller but highly engaged following on social media platforms. Brands are recognizing the value of working with micro-influencers as they often have a more niche and targeted audience, resulting in higher engagement rates. Additionally, micro-influencers are often seen as more authentic and relatable, which resonates with consumers in South Korea who value authenticity and trust in their influencers. Another trend in the market is the increasing use of video content. South Korea has one of the highest smartphone penetration rates in the world, and consumers are avid consumers of online video content. Influencers are leveraging this trend by creating video content that showcases products and engages their audience. Brands are capitalizing on this trend by partnering with influencers to create sponsored video content that is seamlessly integrated into the influencer's content.

Local special circumstances: South Korea has a highly developed and tech-savvy population, with a strong emphasis on beauty and fashion. This has led to the rise of beauty and fashion influencers who have a significant influence on consumer purchasing decisions. These influencers often have a large and dedicated following, and their recommendations can drive sales for brands in the beauty and fashion industry. Additionally, South Korea has a strong culture of online shopping, with consumers being comfortable purchasing products online. This makes influencer advertising an effective way for brands to reach their target audience and drive sales.

Underlying macroeconomic factors: The growth of the influencer advertising market in South Korea can also be attributed to the country's strong economic growth and high disposable income. As the economy continues to grow, consumers have more purchasing power and are willing to spend on products recommended by influencers. Additionally, the high internet penetration rate in South Korea allows for easy access to social media platforms and influencer content, further fueling the growth of the market. In conclusion, the Influencer Advertising market in South Korea is thriving due to customer preferences for social media and influencer recommendations, the rise of micro-influencers and video content, the emphasis on beauty and fashion, and the country's strong economic growth and high disposable income. Brands are increasingly recognizing the value of influencer advertising in reaching their target audience and driving sales in this tech-savvy and digitally connected market.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on influencer advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers advertising fees paid directly to influencers to post sponsored content.

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use market data from independent databases, influencer marketing platforms, and third-party reports to analyze and estimate global influencer advertising spending. We start by researching on the average cost per content post on each social media platform, the number of influencers available on advertising platforms (breakdown by tier: nano, micro, macro, and mega), and the average number of posts per year. Then we estimate the market size for each country individually. We use relevant key market indicators and data from country-specific industry associations, such as GDP, social media users, and digital consumer spending. Lastly, we benchmark key countries or regions (global, United States, China, etc.) with external sources.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market. For instance, the S-curve function is well suited to forecast digital products due to the non-linear growth of technology adoption, whereas exponential trend smoothing (ETS) is more suited for projecting steady growth in traditional advertising markets.

Additional notes:

Data is modeled using current exchange rates. The impacts of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice per year in case market dynamics change.