Digital marketing in Korea


Published on

This deck presents an overview and trend on digital marketing in Korea

Published in: Technology, Business
No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Digital marketing in Korea

  1. 1. Digital Media Trend Korea’s Digital Media Market Review Presented by : 24/7 Real Media, Inc. May, 7 2008 Contact : 82-2-3459-2323, The Science of Digital Marketing Copyright © 2008, 24/7 Real Media - A WPP Company 24/7 Real Media — leader in providing multi-platform marketing strategies that include targeted, response-oriented Web advertising campaigns, search engine marketing, ad serving, Web analytics, and implementation. Page 0
  2. 2. 24/7 Real Media, a WPP Company Recognized leader in the digital marketing industry – Rated best ad server and best advertising network – The #1 rated search marketing technology – A leading privacy advocate and proactive member of the IAB Reaches a Global Population – 20 offices in 12 countries – Over 400 billion global advertising impressions served monthly – SEM technology interfaces with over 50 search and shopping engines worldwide Operates a suite of media and technology products and services Media Networks Technology Solutions • The Global Web Alliance • OAS® for Publishers • Custom Solutions • OAS for E-commerce • Decide DNA® - SEM • Custom Solutions • Media Planning & Buying (GRP) • Online Survey • Rich Media Page 1
  3. 3. Contents Ⅰ. Internet Ⅱ. IPTV Ⅲ. Widget Ⅳ. The Future of Digital Marketing
  4. 4. Internet Population and Penetration The internet population of Korea is 34 million, 76% of internet penetration (In the US, 188 million internet population,65% penetration) )8002,.naJ(aeroK fo ycnegA tnempoleveD tenretnI lanoitaN : ecruoS Page 3
  5. 5. Internet Usage by Age Group Almost all of 10s-30s population are using Internet (10s – 99.8%, 20s - 99.3%, 30s - 96.5%) )8002,.naJ(aeroK fo ycnegA tnempoleveD tenretnI lanoitaN : ecruoS htob roF Page 4
  6. 6. Internet as a major news channel In the past, the major sources of news were TV, radio, and newspapers. But for now, the Internet became the most channel for news. (The News Usage Rate : Internet - 48.3%, TV - 42.8% in 2006) TV Internet Newspaper )6002( hcraeseR eliforP neziteN ,aidemsaN :ecruoS )6002( dnerT roivaheB resU sweN tenretnI ,kcilcnaeroK :ecruoS Page 5
  7. 7. Page 6 )7002( DCEO : ecruoS )7002( DCEO : ecruoS )7002( DCEO : ecruoS )7002( DCEO : ecruoS Broadband Country
  8. 8. Quoting “Digital Korea” (by Tomi Ahonen, August 2007) 1. Over 50% citizen use Internet banking 2. 63% use mobile phones for payment 3. 25% of all Visa cards are provided by mobile phone 4. m-commerce transactions for non-telecom goods exceeded $1 bln in 2006 5. 73.6% filed taxes online as of January 2006 6. Electronic Signature Law and e-Commerce Law 7. Online game market is 57% of the total game market in Korea (5% in US, 2.5% in Japan, shifting to online) Page 7
  9. 9. Weekly Media Consumption Internet scored the second most consumed media after TV, Especially, internet is more consumed by male in their 20s-30s than TV Share of Weekly Media Consumption by Media Share of Weekly Media Consumption by Age Group DMB Radio Newspaper TV Internet )8002,.rpA( yevruS teN kcilcnaeroK :ecroS )8002,.rpA( yevruS teN kcilcnaeroK :ecroS Page 8
  10. 10. Korea’s Top Domain Websites 97% of Korean Internet population use Naver. Local publishers perform better than global palyers (%=penetration rate) 97% 90% 74% 72% 59% 58% 57% )8002,.raM(kcilcnaeroK : ecruoS Page 9
  11. 11. Naver Front Page Search real- time search widget words Log in AD (weather, calendar, etc.) Categories AD AD News Home AD Finance Today s’ ’ ’ ’ Photo sgn tsoP s’yadoT sgn tsoP s’yadoT sgniitsoP s’yadoT sgniitsoP s’yadoT Shopping sp T s’yadoT sp T s’yadoT spiiT s’yadoT spiiT s’yadoT (sale issues) Real-time search words by category (rolling) seussI s’yadoT Event Categories Page 10
  12. 12. Page 11 : ecruoS KCMI & snoitacinummoC liehC : ecruoS )000,00$( )000,00$( )000,00$( )000,00$( gn B gniilllliiB gniilllliiB gn B dA tenretnI dA tenretnI dA tenretnI dA tenretnI )000,00$( )000,00$( )000,00$( )000,00$( )hcraeS + )hcraeS + )hcraeS + ya ps D( erahS yallpsiiD( erahS yallpsiiD( erahS ya ps D( erahS gnilliB dA tenretnI dA ssorG atoT dA ssorG llatoT dA ssorG llatoT dA ssorG atoT (In the US, internet ad takes 7.5% of total ad spend) 15.7% of total ad spend. Internet ad revenue in 2007 reached $1.2bn, Internet Ad Spending(Billing)
  13. 13. Page 12 KCM & sno tac nummoC ehC : ecruoS KCMII & snoiiiitaciiiinummoC lllliiiiehC : ecruoS KCMII & sno tac nummoC ehC : ecruoS KCM & sno tac nummoC ehC : ecruoS )000,00$ ni( dnepS dA yalpsiD showing an increase of 20.2% growth compared to the prior year. reached 6.2% of total ad spend, $482 million spent on display ad in 2007, Display Ad Spend
  14. 14. Search Ad Spend $748 million spent on search engine marketing in 2007, reached 9.6% of total ad spend, showing an increase of 53% compared to the prior year. dnepS dA hcraeS dnepS dA hcraeS dnepS dA hcraeS dnepS dA hcraeS )000,00$ n ( )000,00$ niiii( )000,00$ n ( )000,00$ n ( KCMI & snoitacinummoC liehC : ecruoS Page 13
  15. 15. The Web 2.0 Era Web 2.0 brought changes of marketing method - from showing to communicating. Marketing1.0 Marketing2.0 Channel Mass media Interactive online channel 1:N N:N Relations (advertiser : consumer) (consumer : consumer) Communication Broadcast Conversation method - Create and spread brand message by Communication - Deliver brand message consumer participation object - Raise sales - Activate consumer communication The main purpose Brand awareness Brand experience tool Pop-Up, Email, Banner ▪ ▪ ▪ Blog, Mini-hompy, UGC ▪ ▪ ▪ Page 14
  16. 16. Online-centric marketing Maeil Dairy Industry Co., Ltd. – “Banana is originally white” Maeil Dairy Industry’s banana flavored milk ‘banana is originally Brand white’ Period Feb.2007~2008 - In the form of hidden camera, the video shows the marker’s concern on the product humorously. - Using only 6mm camera, this series is made of three different Detail episodes. - Creating new images and trends of the product - Opening the viral video and theme song contests, games and other events. After spreading the viral videos on the Internet, publishing them on Strategy other media. - Using the best aspects of the low-budget videos and humors. - Proving the power of the golden idea and UGC. Result - Selling 30 millions of bottles in 9 months after launching. episode 1 episode 2 episode 3 - Grand prize on the IDF(International Dariy Federation) awards in 2007 Page 15
  17. 17. Digital Marketing Channels Various online marketing channel which advertisers can leverage UGC (User Generated Contents) Viral Blog On-line PR Brand Minihompy Display ad (Banner..) Chatting Search Page 16
  18. 18. Blog Page 17
  19. 19. Page 18 .noitamrofni s’golb deggat yreve dna gniknar eht sedivorp etis sihT .sgolb gnihcraes rof enigne hcraes tenretnI na si itaronhceT* )7002,.raM( taronhceT : ecruoS htob roF )7002,.raM(iiiitaronhceT : ecruoS htob roF )7002,.raM( taronhceT : ecruoS htob roF )7002,.raM( taronhceT : ecruoS htob roF That means 120,000 blogs are being created every day There were 70 million blogs as of March 2007 Worldwide Blog Usage Trend
  20. 20. Page 19 )7002(ec ffO ac ts tatS ano taN aeroK ,)8002,.raM(kc cnaeroK : ecruoS htob roF )7002(eciiiiffO llllaciiiitsiiiitatS llllanoiiiitaN aeroK ,)8002,.raM(kciiiillllcnaeroK : ecruoS htob roF )7002(ec ffO ac ts tatS ano taN aeroK ,)8002,.raM(kc cnaeroK : ecruoS htob roF )7002(ec ffO ac ts tatS ano taN aeroK ,)8002,.raM(kc cnaeroK : ecruoS htob roF 84% The blog usage rate of 20s-30s reached over 99%. 84% of Korean internet population use blogs. Blog Usage Trend
  21. 21. Blog Usage Trend Naver leads the pack, followed by Daum and Yahoo! Recently, professional blog sites tistory picked up )8002,.raM(k cnaeroK : ecruoS )8002,.raM(k cnaeroK : ecruoS )8002,.raM(kiiiillllcnaeroK : ecruoS )8002,.raM(k cnaeroK : ecruoS Page 20
  22. 22. Brand Blog vs. Individual Blog There are two types of brand blog - the official brand blog and the individual one. The official brand blog marketing is more popular in Korea type1. running an official brand blog type2. utilizing an individual blog CEO netizen CEO netizen Official Individual blog management netizen management netizen type … Brand … … Individual blog … blog administrator netizen management Individual blog netizen Raising the number of visitors by running the Building intimacy with netizens by posting Strength unified official blog personal contents Possible disactivation on running the blog Individual blogs may have inappropriate and Weakness under the circumstances of non-flexible contents that can lead unintentional effect. management GM - ‘Fast Lane’ Boeing airplane - Randy’s Journal Case MS - ‘Channel 9’ MS employee’s individual blogs Page 21
  23. 23. Brand Blog Case Woongjin Cuchen Brand Woongjin’s rice cooker ‘Cuchen’ Target 20-30s aged newly weds and housewives Period March 20 2006 ~ 1 month <e-wonderful rice> The housewife bloggers posted pictures and recipes of dishes made by Cuchen rice cooker. In case of popular posting, more than 100 scraps were made. Campaign <Housewife blogger support campaign> A program gives the blog members sponsorship on a purpose of supporting housewives. The selected members can be provided chances to attend a free cooking class. Total number of visitors : 449,373 Total number of subscribers : 35,384 Results Number of bulletins : 19,812 Number of reports : over 1,100 Page 22
  24. 24. Minihompy (1999) (2003) (2004) Page 23
  25. 25. Cyworld’s Minihompy (SNS) Acorn : Cyworld’s cyber currency Page 24
  26. 26. Brand Minihompy Case Advertiser A6 Refresh brand image to attract 20s aged Object consumers into Period August 2005 Event1. apply for the movie preview by putting codes on the receipt of A6 products Event2. upload self stylish photo shots Events Event3. give notice of the imitation products of A6 to the minihompy Event4. write poets inspired by the brand Event5. make comments on the brand A6 Total number of visitor : 193,464 Result Number of scraps : 7,094 Number of bulletins: 14,751 Page 25
  27. 27. Minihompy Usage Trend By far, Cyworld has led minihompy market. Cyworld ‘minihompy’ Daum ‘planet’ Sayclub ‘minihompy’ Buddybuddy ‘minihopmy’ Myspace Korea launching in April 2008 )8002,.raM( kcilcnaeroK : ecruoS Page 26
  28. 28. Page 27 )7002(ec ffO ac ts tatS ano taN aeroK ,)8002,.raM(kc cnaeroK : ecruoS htob roF )7002(eciiiiffO llllaciiiitsiiiitatS llllanoiiiitaN aeroK ,)8002,.raM(kciiiillllcnaeroK : ecruoS htob roF )7002(ec ffO ac ts tatS ano taN aeroK ,)8002,.raM(kc cnaeroK : ecruoS htob roF )7002(ec ffO ac ts tatS ano taN aeroK ,)8002,.raM(kc cnaeroK : ecruoS htob roF The usage rate of 20s reached over 85%. 53% of Korean internet user enjoy minihompy. Minihompy Usage Trend
  29. 29. Blog vs. Minihompy Brand Blog is effective for delivering information, while brand minihompy is for communicating with neighbors. Brand Blog Brand Minihompy Creating Created by blog administrator and visitors Created and managed by advertiser Contents Object Building brand identity for the visitors Publicize brand events and campaigns Building intimate communication with core Delivering brand image and information Effect targets by forming Ilchon(neighbors) and rapidly sending private messages, etc. Top Naver brand blog Cyworld brand minihompy Service Page 28
  30. 30. From info-centric to human-centric Page 29
  31. 31. UGC / Viral (User Generated Contents) Page 30
  32. 32. Page 31 )7002,.naJ(hcraeseR dnerT egasU CCU ,aeroK fo ycnegA tnempolllleveD tenretnII llllanoiiiitaN : ecruoS* )7002,.naJ(hcraeseR dnerT egasU CCU ,aeroK fo ycnegA tnempo eveD tenretnII ano taN : ecruoS* )7002,.naJ(hcraeseR dnerT egasU CCU ,aeroK fo ycnegA tnempo eveD tenretn ano taN : ecruoS* )7002,.naJ(hcraeseR dnerT egasU CCU ,aeroK fo ycnegA tnempo eveD tenretn ano taN : ecruoS* 40.7% 38.8% /Vote Scrap Recommend 28.8% Do all 41.6% 43.8% review comment 55.2% [ UGC Viral Activities Trend ] and 55.2% have taken part in any viral activities of UGC. According to the research*, 35.2% of respondents have created UGC UGC Usage Trend
  33. 33. Page 32 )8002,.raM(kc cnaeroK : ecruoS )8002,.raM(kciiiillllcnaeroK : ecruoS )8002,.raM(kc cnaeroK : ecruoS )8002,.raM(kc cnaeroK : ecruoS Daum TVpot and Pandora TV are the leading UGC publishers. UGC Usage Trend
  34. 34. Brand UGC Case Nongshim – Ozzam noodle Brand Nongshim’s ‘Ozzam’ noodle Campaign Finding the CF star of Nongshim noodle! A UGC contest titled ‘my love for Ozzam’ Detail Pick the best video by user voting and broadcast the winner CF on air. Views : 1,100,000 Results Uploads : 170 (reported Nongshim’s Ozzam Case Study, June 2007) Click Page 33
  35. 35. Successful Case of Brand UGC CocaCola & Mentos Brand CocaCola & Mentos Campaign Diet Coke + Mentos : The Human Experiment Video What happens if the diet coke meets mentos candy? The Detail chemistry was so amazing that even makes the water fountain! Views : over 10,000,000 in US, 2007 Results Click Favorited : 14,585 (reported in June,2007) Dove Evolution Brand Dove Campaign Dove Real Beauty Campaign : the Evolution A 75-second viral film created on a purpose of warning the Detail distorted ideas of beauty. Views : over 12,000,000 since 2006 Results Favorited : 10,103 (reported in June,2007) Click Page 34
  36. 36. Viral Marketing Strategy Eye-catching creatives are crucial to the success of viral campaign, creating viral buzz by spreading them on a web 2.0 platform Use of Viral web 2.0 Build a viral network contents platform Internet UGC site Expanding content ad solution Community site ex) Blog site Creating viral contents (over 95%) Delivering brand message (under 5%) Page 35
  37. 37. Search Page 36
  38. 38. Global Ranking of Search Engines Korean search engine Naver ranked as world’s 5th largest search engine by comScore despite regional limitation )7002,rebotcO( erocSmoc : ecruoS Page 37
  39. 39. Result Page line with WOM Search Result (Linked with Viral Contents) Page 38
  40. 40. Result Page line with WOM Search Result (Linked with Viral Contents) Page 39
  41. 41. Search Engine Trend in Korea The total number of search queries reached 5 billion as of March 2008. With 71% query share, Naver successfully monetized it. ( Search ad revenue of Naver in 2007 : $487m, 63% YoY Growth) (%=query share) (71%) (17%) (5%) (4%) (2%) (1%) )8002,.raM(kcilcnaeroK : ecruoS ) : ecruoS Page 40
  42. 42. Search Ad Model Google vs. Naver Google shows organic search results along with adwords ads,while Naver shows classified search results along with Overture sponsor- link and other several CPM and CPC text ads. Overture Sponsor link (CPC) Power link (CPC) Adwords (CPC) Plus Pro (CPM) Biz site (CPC) [ Keyword results of ‘Coffee’ on each sites] Page 41
  43. 43. The Present & Future of Digital Marketing Ⅰ. Internet Ⅱ. IPTV Ⅲ. Widget Ⅳ. The Future of Digital Marketing Page 42
  44. 44. IPTV Subscribers The number of IPTV subscribers in Korea reached 1.4 million as of March 2008, expected to grow to 2.7 million by the year-end. (Hana TV-SK Telecom, Mega TV-Korea Telecom) Page 43 VTageM ,VTanaH : ecruoS
  45. 45. IPTV Advertising HanaTV only provides pre-roll video ads in front of VOD service, but interactive advertising will be introduced after June 2008 Click Click Now Available Home menu Ad Loading Ad Pop Up DAL front screen Promotion front screen Branding Ad Text Ad .ot sevlesmeht refsnart ylevitcaretni nac sreweiv eht taht noitacol hcus ro latrop ,etis cinortcele na :)noitacoL sresitrevdA detacideD(LAD )ㄱ
  46. 46. Example of coupon download Users can download discount coupon onto their mobile and get discount at offline stores Baskin Robbins seasonal event 1. Brand introduction 2. View production video 3. Get a coupon → put mobile number 010-9314-0000 <Result Analysis > - sale increase 인할 크이케 림스크이아 다니습했착도 이폰쿠 . - visit rate of the advertiser page - number of download coupons Exchange the coupon in any BR store - exchange rate of coupons - advertising effect by regions .ot sevlesmeht refsnart ylevitcaretni nac sreweiv eht taht noitacol hcus ro latrop ,etis cinortcele na :)noitacoL sresitrevdA detacideD(LAD )ㄱ Page 45
  47. 47. The Present & Future of Digital Marketing Ⅰ. Internet Ⅱ. IPTV Ⅲ. Widget Ⅳ. The Future of Digital Marketing Page 46
  48. 48. Widget Desktop widget vs. web widget type providers URL detail launched on January 2006 Naver desktop direct access and use naver services on desktop launched on September 2006 Daum widget bar direct access and use daum services on desktop Desktop widget well-made install base widget with fancy design Daltong Used for CRM by inews24 and CTS TV. Miniple Install base widget, recent development of version 3.0 launched on August 2006 the biggest widget provider, running over 80 widgets for 30 companies Web widget launched on January 2007 Cyworld home 2 providing 20 web widgets for ‘home2’ in a progress cooperating with Page 47
  49. 49. Page 48 9.2% rise in the number of customer(15,143 -> 16,531) and 31.4% rise in total sales(14billions -> 18billions). Results stneve yliad ofni elaS : stnetnoC - ,seludehcs elas : stnetnoC - repapswen detnirp : ngiseD - radnelac Paper Stand fo smrof suoiraV : ngiseD - Stand/Table Calendar ofni elas ,sruoh ssenisuB ,emit tnerruC : stnetnoC - nitnatsnoC ofni selas ,kcolc rehtaew : stnetnoC - norehcaV hctaW yruxuL : ngiseD - retsop DCL : ngiseD - Luxury Watch Weather Clock Lotte Department Store Case of Desktop Widget AD
  50. 50. Web Widget AD Uniqlo Uniqlo’s Uniqlock Campaign is the most successful case of widget marketing. Uniqlock widget combined with music, dance and a clock has raised Uniqlo’s brand awareness internationally. 27,793 Uniqlock had been installed in 76 contries, reached 71,204,940 views(Jan.29, 2008) Click Click Page 49
  51. 51. Web Widget AD Wall Street Institute Korea’s first web widget marketing case published by Wizard Works and Wall Street Institute. A ‘smart’ widget functions as a counter in blogs, showing a character growing in it, using English. Providing simple English expressions and the weather and clock service. Click Click Page 50
  52. 52. The Present & Future of Digital Marketing Ⅰ. Internet Ⅱ. IPTV Ⅲ. Widget Ⅳ. The Future of Digital Marketing Page 51
  53. 53. Evolution on the Web The Web environment is evolving rapidly Web 1.0 Web 2.0 Web 3.0 one -way message Interactive World wide web Wiki Text/graphics based Contact us Pop-up Portal Video Blog UCC ? Viral E-mail Social Networks Spam … Spam Spam … Page 52
  54. 54. Web3.0 ? = I’m the Center of Web Recommendation Personalization Artificial Intelligence Filtering Organization Page 53
  55. 55. Purina as content aggregator The goal for PetCharts is to help people find good stuff they like Posts are culled from both main Flickr stream news Photos organization and specialty pet blogs Lets users vote Youtube content up or Videos down Page 54 Click Click
  56. 56. Thank 24/7 Real Media will be with you in the web 3.0 era Page 55