KOREA DIGITAL MARKET TREND 2019 & TRAVEL Sally Lee
INDEX Hafa Adai!
1. DIGITAL TREND Summary
Global advertising spending worldwide will surpass 665 billion U.S. dollars in 2019 and the expenditure • on digital advertising is expected to reach 50% for the first time in history. Mobile advertising market size continues to expand and more than 10% of growth is expected. • The 90% of total internet users approximately 4.43 billion people are expected to use mobile internet. • ▣ Global Advbertising Market Sizes by Media PC Mobile Newspaper Ad, Magazine Ad, Radio Ad, TV Ad and Others Digital (PC+Mobile) (unit : 100million dollars) [Source] eMarketer, Digital Ad Spending 2019 (Mar, 2019)
Total advertising spending in South Korea in 2019 is expected 12.4 trillion won (approximately $10.5 • billion). 'Digital Advertisements' combined ‘PC + MOBILE’ occupy for approximately 40% of the total • advertising expenditure. The size of mobile advertising expenditure has grown rapidly by more than 90 percent in the last • four years. It expects to record more than twice as much as PC advertising costs. ▣ Korea Advertising Market Sizes by Media Broadcasting OOH Newspaper/Magazine PC Mobile Digital (PC+Mobile) (unit : billion dollars) (unit : 100million won) [Source] Cheil, SamsungPOP Sector Update_Media (May, 2019)
Generation Z is expected to lead the mobile-based digital media trend in 2020. • Generation z is estimated to be 2.6 billion by 2020 and is fastest growing as the most influential • marketing target (generation). Severe competition for mobile-based instant services, platforms, and contents are expected for • Z-generation targets. ▣ Generation Z using digital media Characteristics Generation Z (or Gen Z) refers to the generation born in the mid-1990s to mid. They are used to using IT devices and have high information processing power and are used to expressing their individuality and creativity using SNS. As of 2020, the total number of generation Z is around 2.6 billion worldwide Gen Z spends more time on media than other generations(unit : %) TV PC Mobile Digital native who grew up with a smartphone Mobile device usage time takes up more than 70% of the Gen Z 22 7 70 media device usage time Gen Y 31 10 59 Communication & Experience Sharing via SNS and Video Platform Facebook and Twitter generation, pull the growth of TicTok Gen X 52 8 41 Senior 69 7 24 Attaching importance to real me and preferring to untack disconnection Active communication via online while preference to untack offline [Source] Nielsen Koreanclick, 3Screen DATA
Full implementation of a 52-hour workweek for companies with 300 employees or more, effective • from April 1, 2019. The capital area - working for the enterprise of middle standing - majorly 30th, 40th male and 20th, • 30th female Expected the extension for the use of service considering ‘cost’(reduction) and ‘time’(efficiency) • based on the change of the concept for leisure ▣ Leisure / living services that have recently drawn attention Health Care Culture/Hobby/Education Travel / Relaxation OTT SVC, Webtoon/ Domestic/ short-distance Home Training Internet Novel overseas travel IoT based fitness devices Subscription services, Hokangs (2030 Generation) Social Networking Activity Camping (Family/Friendly Focused) Life Beauty Online groceries delivery service Skin Care, Nail Care and Home furnishing, Pets/Plants Massage etc., Two Jobs to supplement income Home beauty care devices [Source] Hana Institute of Finance, A Study on the Prospective Leisure-Living Service by the implementation of the 52-hour workweek
2. Travel Trend
Approximately 28.69 million people traveling overseas in 2018 and approximately $28.4 billion in • tourism expenditure (about 33.4 trillion won per year) The growth rate of Koreans traveling overseas has decreased since 2015. However, the size of the • travel market is still growing. Industry interpretation is that the reduction in annual outbound travel growth has entered • a "growth stabilization period" due to the popularization of overseas travel. ▣ Domestic Departure Statistics and Tourism Expenditure (unit : per person, $1,000) Domestic Departure Statistics Tourism Expenditure ($1,000) Domestic Departure Increasing Rate 20.1% 18.4% 15.9% 8.3% 2015 2016 2017 2018 [Source] Korea Tourism Organization Report on domestic departure statistics (Duplicated counting expected)
Upload 26.33 million SNS postings related to 'travel' in 2018 (up 238.9% from 2015) in 2017, • Korea saw a sharp rise in the use of annual leave from the workers due to the ‘Several holidays' and there has been significant growth in travel ▣ Travel related SNS postings (unit : posting) [Source] ] eMFORCEDatelab – SNS DATA
Summer Vacation Trend in 2019 : More than 70% preferred self-guided tour, when they are • planning to travel abroad 80% of 2030 generation and more than half of 4050 generation prefer self-guided tour • Increasing experience of travel abroad as well as vitalization on OTA and Meta Search(17p), • especially developing of mobile ▣ Travel Arrangement for overseas travel (unit : %) [Base : Those who plan to travel overseas for summer vacation, N=469, single answer, %] *Highlighted in blug: +3%P compared to the total aver. Age 5.8 20s 30s 40s 50s 24.1 (Base) (125) (117) (125) (102) 87.2 79.5 59.2 52.0 FIT 70.1 10.4 14.5 29.6 45.1 PKG Travel 2.4 6.0 11.2 2.9 HotelPack / Airtel Hotel Pack / Airtel PKG Travel FIT [Source] Open Survey, 2019 Summer Vacation Trend Report
• 2019 summer vacation trend : preference to Japan and East- southern Asia as travel destinations which are effective to use budget and have short distance • Each 20s,30- 40sgive a lot of weight to Japan, East- southern Asia, Guam/Saipan and 50sto travel to Europe. ▣ Best summer vacation destination in 2019 (unit : %) Europe Japan North America / 23.0% 11.4% 4.5% • 50s>40s Oceania • September for 10days • 20s>30s • 30s>40s • 40% of PKG Travel • July for 3days • Early August to September for 10 • 3- 4star Hotel or Airbnb • Mostly FIT days • Travel motivation: Cultural Heritage • 3- 4star Hotel or Airbnb • 3- 5star Hotel Site Visit & Natural beauty • Searching through Naver • Travel motivation: Natural beauty • Travel motivation: Food & Shopping Guam / Saipan 10.7% South- east Asia 37.5% China / Hongkong 10.7% • 40s>30s / Taiwan • Late July or Late • 20- 40s September for 5days • All generation • Late August for 5day • Mostly FIT • June for 4days • Mostly FIT • 3- 5star Hotel • 33% of PKG Travel • 3- 5star Hotel or Pool Villa • Searching through Shopping • 3- 5star Hotel • Searching through Agoda Platform • Travel motivation: Food & Culture • Travel motivation: Relaxation • Travel motivation: Relaxation [Source] Open Survey, 2019 Summer Vacation Trend Report [Base : Those who plan to travel overseas for summer vacation , N=469, %]
Educational institutions for preschool children (kindergarten, preschool etc.) in Korea implement • summer vacation on the first week of August in a lump Therefore, 3040 generation that has preschool child takes summer vacation on the first week of • August mostly 20s and 40s that try to avoid flocking a massive number of people on the first week of August show • the signs to move to the front and back of that week ▣ Korean’s Preferred date for summer vacation to overseas June 1~15 June 16~30 July 1~15 July 16~31 August 1~15 August 15~31 September 1~15 September 16~30 [Source] Open Survey, 2019 Summer Vacation Trend Report [Base : Those who plan to travel overseas for summer vacation, N=469, %]
For FIT, searching the travel information in order of food > area(tourist spot) > accommodation • There are the most searching for food/restaurants and the least searching for events such as • festivals While 40s searches for various information, 20s is somewhat passive • ▣ Searching Keywords for FIT Age All 20s 30s 40s 50s (Base) (329) (109) (93) (74) (53) 69.9 65.1 71.0 79.7 64.2 Restaurant and local food Information 67.8 61.5 69.9 68.9 75.5 Tourist Attraction Information 62.5 59.6 65.6 62.2 64.2 Accomodation Information 50.8 45.9 49.5 56.8 54.7 Ground Transportation Information 39.2 33.0 44.1 44.6 35.8 Shopping Spot Information 37.7 Activity Information 38.5 39.8 35.1 35.8 37.7 Shopping Item Information 37.6 37.6 45.9 26.4 33.4 32.1 29.0 44.6 28.3 Festival and Event Information 0.9 0.0 0.0 1.4 3.8 Others 5.8 8.3 5.4 2.7 5.7 None [Source] Open Survey, 2019 Summer Vacation Trend Report [Base : Those who plan to travel overseas for summer vacation as FIT, N=329, Multiple,%]
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