Market Trends of South Korea OOH And DOOH Industry
The Transportation Segment is Expected to Hold a Major Share in the Market
- The transportation segment, notably airports, is analyzed to hold a significant market share in the South Korean OOH and DOOH market during the forecast period. The growing prominence of airport advertising is gaining significant traction in the country, with many major market vendors, such as Sovereign Comm Inc., offering OOH and DOOH advertising on airports.
- For instance, Sovereign Comm Inc. covers all South Korean airports, including Daegu (TAE), Seoul Gimpo (GMP), Jeju (CJU), Incheon (ICN), Busan (PUS), and Cheongju (CJJ). The company offers static and digital formats covering all areas, including boards near the airport.
- Transit displays are primarily installed in public vehicles and transit stations, providing advertisers with a captive audience during commutes. Transit DOOH and OOH are some of the emerging advertising methods for connecting with commuters. The increasing number of public transportation facilities across South Korea is expected to enhance the applications of transit displays.
- Further, the expanding transportation sector, characterized by the growing contribution to the total GDP, is analyzed to strengthen the application of OOH and DOOH in the transportation sector in the country. It is expected to create significant growth opportunities for market vendors to expand transit advertising. For instance, according to the data from KOSIS KOrean Statistical Information Service and Bank of Korea, in 2023, approximately USD 54.40 billion was generated as real GDP by the transportation sector in South Korea.
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The Retail and Consumer Goods Segment is Expected to Hold a Significant Share in the Market
- The retail and consumer goods segment is analyzed to drive the growth of the South Korean OOH and DOOH market during the forecast period. E-commerce, growing consumer spending, online shopping, and changing consumer behavior are expected to be significant factors driving the growth of South Korea's retail and consumer goods industry. As the industry grows and rapidly evolves, retailers in the country are constantly investing in digital out-of-home advertising to attract customers and increase their market sales.
- Further, the country's retail sector has grown significantly over the past few years. This significant growth in revenue creates significant scope for retail advertising, thus driving the market's growth. For instance, according to the data from MOTIE (South Korea), in 2023, retail sales in South Korea grew by 6.3% compared to the previous year.
- Furthermore, in May 2024, the Ministry of Trade, Industry, and Energy announced that Korea’s retail industry grew by 10.8% YoY in April 2024. The ministry's data also showed that offline sales dipped by 0.2% while online sales surged by 22.2%. With this growth in the retail sector, DOOH advertising is emerging as a powerful tool in the country's retail and consumer goods sector to enable brands to reach their target audience effectively and in a budget-friendly manner.
- The retail industry is projected to hold a substantial portion of South Korean digital out-of-home and out-of-home spending during the forecast period. This trend is fueled by a rising inclination among retailers to integrate out-of-home media into their advertising strategies to increase sales and boost customer acquisition.
