The Korean Advertising Yearbook 2009 - Part 2: Analysis of the Advertising Market: Above the Line (ATL)
Book Details
Author(s)Ltd. XenoOne Co.
PublisherMarketResearch.com
ISBN / ASINB00482YZS4
ISBN-13978B00482YZS2
AvailabilityAvailable for download now
Sales Rank99,999,999
MarketplaceUnited States 🇺🇸
Description
Television and Radio
The total advertising spending for broadcast media such as television, radio, and terrestrial digital multimedia broadcasting (DMB, aka mobile TV) was about 2.1 trillion won in 2008. Compared with the year before 2.3 trillion won, this was down 208.8 billion won, a decrease by 8.7 percent. In September 2008, which is normally the peak month for broadcast ad, the collapse of Lehman Brothers in the United States triggered a global domino effect which forced several global financial firms to file for bankruptcy, others to resort to mergers and acquisitions, and numerous governments to initiate financial bailout packages. Merrill Lynch and AIG, to name but two, were among the financial giants affected. Since the financial meltdown spread to the global economy, Korea’s broadcast ad market has shrunk more significantly than that of the Asian financial crisis in 1997.
Newspapers
The long aspiration of recovery in the newspaper advertising market ends in disappointment in the year of 2008. The year produced high expectation for companies to spend more money due to such special demands as the launch of the new government, expected indexes for growth, and large sporting events like Olympic. However, the FTA talks between Korea and USA triggered food safety concerns on American beef and people surged to the street with candle lights for protests, which blurred May in anxiety. The sponsors of newspaper were blackmailed. Except for automobile and college advertisements, the overall advertising was decreased in most industries. The industry that fell most was real estate. In the early year, the economy was brisk, but it began to fluctuate greatly toward the end of the year.
Magazines
The advertising market in 2008, with specific reference to the magazine sector, was 480.4 billion won, a 0.8% decrease from the previous year, 484.1 billion won. The global financial crisis in late 2008 had a huge impact on magazine advertising industry, causing the decline in its growth. The total advertising revenue for major magazines recorded a negative growth rate of 1.2%, compared to the previous year. Although most of the magazine categories reflected this negative growth, a few exceptional categories maintained their growth despite the economic downturn. These were the fashion and accessory magazine categories. These magazines normally represent luxury and imported brands. Although their growth rates were rather moderate at 2.6% and 7.8% respectively, they managed to maintain growth despite the widespread economic troubles.
Cable TV
In 2008, the cable TV continued to enhance its standing and identity as a substantial media based on various crucial market developments and business changes surrounding its own sector. These include the market entry of IPTV, the initiation of digitalization processes for cable TV channels by System Operator-Program Provider (SO-PP), cable TV subscribers’ switch to digital cable services, the Hannara National Party’s new bill for Media Act, and marked improvements in program contents for cable TV. However, it experienced a large decrease in its advertising sales similar to other broadcast media as a result of the latest recession. During the two consecutive quarters from the fourth quarter of 2008 through the first quarter of 2009, advertising revenues for most cable TV program providers decreased by 30% to 40%. Considering the fact that their advertising revenues amount to more than 80% of their total company earnings, cable TV program providers have another tough year ahead in 2009.
The total advertising spending for broadcast media such as television, radio, and terrestrial digital multimedia broadcasting (DMB, aka mobile TV) was about 2.1 trillion won in 2008. Compared with the year before 2.3 trillion won, this was down 208.8 billion won, a decrease by 8.7 percent. In September 2008, which is normally the peak month for broadcast ad, the collapse of Lehman Brothers in the United States triggered a global domino effect which forced several global financial firms to file for bankruptcy, others to resort to mergers and acquisitions, and numerous governments to initiate financial bailout packages. Merrill Lynch and AIG, to name but two, were among the financial giants affected. Since the financial meltdown spread to the global economy, Korea’s broadcast ad market has shrunk more significantly than that of the Asian financial crisis in 1997.
Newspapers
The long aspiration of recovery in the newspaper advertising market ends in disappointment in the year of 2008. The year produced high expectation for companies to spend more money due to such special demands as the launch of the new government, expected indexes for growth, and large sporting events like Olympic. However, the FTA talks between Korea and USA triggered food safety concerns on American beef and people surged to the street with candle lights for protests, which blurred May in anxiety. The sponsors of newspaper were blackmailed. Except for automobile and college advertisements, the overall advertising was decreased in most industries. The industry that fell most was real estate. In the early year, the economy was brisk, but it began to fluctuate greatly toward the end of the year.
Magazines
The advertising market in 2008, with specific reference to the magazine sector, was 480.4 billion won, a 0.8% decrease from the previous year, 484.1 billion won. The global financial crisis in late 2008 had a huge impact on magazine advertising industry, causing the decline in its growth. The total advertising revenue for major magazines recorded a negative growth rate of 1.2%, compared to the previous year. Although most of the magazine categories reflected this negative growth, a few exceptional categories maintained their growth despite the economic downturn. These were the fashion and accessory magazine categories. These magazines normally represent luxury and imported brands. Although their growth rates were rather moderate at 2.6% and 7.8% respectively, they managed to maintain growth despite the widespread economic troubles.
Cable TV
In 2008, the cable TV continued to enhance its standing and identity as a substantial media based on various crucial market developments and business changes surrounding its own sector. These include the market entry of IPTV, the initiation of digitalization processes for cable TV channels by System Operator-Program Provider (SO-PP), cable TV subscribers’ switch to digital cable services, the Hannara National Party’s new bill for Media Act, and marked improvements in program contents for cable TV. However, it experienced a large decrease in its advertising sales similar to other broadcast media as a result of the latest recession. During the two consecutive quarters from the fourth quarter of 2008 through the first quarter of 2009, advertising revenues for most cable TV program providers decreased by 30% to 40%. Considering the fact that their advertising revenues amount to more than 80% of their total company earnings, cable TV program providers have another tough year ahead in 2009.
