Korean Digital media landscape

1. KOREAN DIGITAL MEDIA
LANDSCAPE

2. Feature of Digital Ad market in Korea
Digital Ad Spending
Korean Digital Trend
Top 10 Advertisers and Sites
Ad Networks
Prospect Y2014
INDEX

3. Korean use digital media widely
96.0
84.1 81.0 79.1
42.3
Iceland Korea US Japan China
[Global internet using rate]
* %, iTU 2012
(Only some parts written)
• 84.1% of Koreans use the internet.
• Korea ranks 20th rank among nations, which
is higher than US and the highest in E.Asia.
• Top of the world for the smart phone using
rate.
Android is used highly in Korea
• 90.7% of Korean use Android OS .
(Approximately 31million users have smart phones used Android .)
• Korean Android using rate is more twice than global avg.
38.1
24.2
37.7
Android
iOS
Other
* %, Stat counter 2013
90.7
8.6
0.7
[Smart phone OS using rate : Global vs Korea]
Naver Daum Google
94.5
81.1
33.8
[Korean top3 portal coverage]
* %, Koreanclick 2013
Naver, Kakaotalk are the most
popular platform in Korea.
• The # of Naver user is over 31million and
95% of Smart phone user use Kakaotalk in
Korea.
• Both are domestic and dominant media in
korea
2012 2013
[Korean Top3 SNS users status]
(Online+Mobile)
* %, Koreanclick 2013
1st 20th 26th 31st 98th
[Global smart phone using rate]
67.6
55.0 54.9
44.0
Korea Norway HK US
* %, Strategy Analytics 2013
(Top3 and US)
Feature of Digital Ad market in Korea

4. Korean Digital AD Spend
• DA, SA and mobile AD market continue to show growth.
• The digital spending in 2013 is expected to reach 2,517B KRW(16.3% YOY)
and in 2014 to reach 2,931B KRW(16.5% YOY)
• The Mobile AD spending has shown dramatic increases since 2011 and its
proportion in the digital ad will be expanded gradually.
750 825 1,044 1,244 1,295 1,390 1,480
440 418
503
612 659 707 743
- -
1
60
210
420
710
-
500
1,000
1,500
2,000
2,500
3,000
3,500
2008 2009 2010 2011 2012 2013E 2014E
SA DA Mo Terr.TV CATV NP MG
[Media Ad Spend by Year]
Bill. KRW
Digital AD
60% 55% 50%
30%
28%
25%
10% 17% 24%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2012 2013E 2014E
Mo
DA
SA
[Digital Ad Proportion by type]
Source : OnlineAD Association, Cheil Communications

5. Korean Digital Trend
• Now, Internet trend starts to be inclined to the mobile in Korea and opens Mobile era.
• In 2013, wired internet access rate was recorded by 79.8%, fell from 82.1% in 2012,
but access rate via mobile was increased by 91%, from 58.3% in the past year.
• And the using rate of mobile IM has shown a dramatic growth based on the below
chart.
82.1
58.3
79.8
91.0
Wired Internet Mobile Internet
Y2012 Y2013
[Internet Device Usage] [Internet Service Usage]
(%)
84.8
60.160.2
82.7
E-mail Mobile
Massenger
Y2012 Y2013 (%)
Source : Korea Internet & Security Agency 2013

6. Korean Digital Trend ; Mobile
[ The number of Mobile Users Trend ] [ Smart phone users ]
-
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
Mobile phone users Smart phone users
OS portion of the
mobile users in Korea
Mobile Internet use time
average of 1 week
1 week average
Download app number
APPS.
• Appox. 67% of mobile phone user uses ‘Smart Phone’.
• The smart phone user is increasing, but whole mobile phone user is steady.
• Android OS holds more than 90% of the M/S
• Average Weekly Mobile Web Usage time is 102 Minutes
Source : Ministry of Science, ICT and Future Planning (2013. 7) / 한국 모바일 소비자의 이해 2013
40 11 3
설치한 앱 수(평균)
최근 한 달간
사용한 앱 수
설치 한 유료
앱 수 (평균)

7. Portal and Search Engine
Media
Site Traffic Search Engine M/S (%)
PC Mobile PC Mobile
UV PV UV PV M/S (%) M/S (%)
31,279,248 19,887,393,097 16,595,659 6,385,120,960 77.91 75.99
26,840,989 10,890,894,501 12,643,650 2,553,040,522 16.11 10.18
11,182,981 346,314,366 8,463,028 167,547,054 3.66 7.40
• Naver is the dominant portal in Korea, it ranks the 1st in traffic and search engine M/S.
• M.Naver(mobile) is also 1st in the mobile web traffic
• Google holds low market share and Yahoo! was withdrew from the Korean market in
Dec 2012.
Source : Koreanclick 2013. 11 (The mobile data not included IOS data)

8. Portal
• Main Page : 대부분의 인터넷 유저들이 방문하기 때문에 Branding 효과
1. 타임보드 : 시간 고정
2. 롤링보드 : 주단위 판매
1. 초기배너 : 주단위판매
2. 브랜딩스테이션 : ½일 고정

9. Portal
• 매우 다양한 형태가 존재하며, Creative에 맞는 Type을 결정
(특수형의 경우는 보통 기본단가에 20% 할증)
▶더블앤 DEMO 클릭!

10. Portal
• 매우 다양한 형태가 존재하며, Creative에 맞는 Type을 결정
(특수형의 경우는 보통 기본단가에 20% 할증)
▶크래쉬 DEMO 클릭!

11. Portal
• 브랜드검색 : 브랜드 관련 키워드검색결과 페이지의 최상단에 노출
프리미엄형
라이트형
키워드:
브랜드와 직접적인 관련이 있어야 되며, 소재 내에 내용이 있는
키워드들만 사용가능
단가:
사용하는 키워드들의 쿼리수 합산으로 단가 결정
네이버 최소 400만원 / 다음 500만원
*네이버 라이트형은 최소 50만원

12. SNS status
[ Monthly duration (min.) in Mobile app. ] [ Monthly Mobile app. UV ]
16,928
8,964 8,843
2,375 1,775
-
4,000
8,000
12,000
16,000
20,000
KakaoStory Band Favebook Cyworld Twitter
467.05
221.90
184.40 169.54
49.62
0
100
200
300
400
500
FaceBook Kakao Story Twitter Band Cyworld
Source : Koreanclick 2013. 11 (The mobile data not included IOS data)
• Big SNS(micro blog) sites in Korea are Facebook, Kakao story and Band based on the
below chart.
• The highest *UV is Kakao story and the most usage time is Facebook in SNS.
• SNS is being used as a online marketing and communication tool between Brand and
Customers in Korea.
(Kakao Story and Band can be used through only mobile App.)* UV is based on only mobile App. data

13. Top 10 Advertisers in DA
[ Ad Spending Top 10 by Category in 2013YTD ] [ Ad Spending Top 10 by Advertiser in 2013YTD ]
-
20,000
40,000
60,000
80,000
100,000
120,000
140,000
* Mil. KRW
-
5,000
10,000
15,000
20,000
25,000
* Mil. KRW
• Ad spending(for only DA) top 3 categories are IT, Commerce and Service.
• Many commerce advertisers like Gmarket&Auction are ranked in the top 10,
and 3 Samsung are ranked in the top 10.
Source : Research AD (2013. 1~ 11)

14. Top 10 SITEs in PC
• Naver and Daum are the dominant portals in Korea, rank the 1st and 2nd on UV & PV.
• Another sites of top 10 are commerce, video and news sites.
• 3 portal sites(Naver, Daum, Nate) take more than 90% of top 10 sites Ad spending for
DA.
Source : Kotreanlclick 2013, 11 and Research AD (2013. 1~ 11),
[Top 10 Site in PC - UV & PV] [Top 10 Site – Spending in 2013YTD]
-
5,000
10,000
15,000
20,000
25,000
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
UV PV
-
50
100
150
200
250
Thousand Million * Mil. KRW
take more than 90%

15. Top 10 SITEs in Mobile
• Traffic rank of Mobile Web is similar to PC and most of Top 10 site are the portal,
commerce and social media site.
• The App using the most time is Kakaotalk, also the most of the installation excluded Apps
set basically by provider like Android market, Address list.
Source : Koreanclick 2013. 11 (The mobile data not included IOS data)
[Mobile Web UV & PV] [Mobile App Time Spent & Installation]
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
UV PV
Thousand Million
Rank Application
Total Time Spent
(Min / *1000)
Unique
Installer
1 Kakaotalk 378,761 23,755,894
2 Naver 171,252 16,292,104
3 Android address List 56,188 24,020,382
4 Kakao Story 52,844 18,206,768
5 YouTube 40,057 24,066,311
6 Samsung Alarm/Clock 17,946 15,068,977
7 Android Market 13,769 24,186,825
8 Samsung Camera 6,700 15,270,474
9 Calendar 5,475 23,560,822
10 Google Search 2,109 23,713,082

16. 94%
11%
2%
-
50
100
150
200
250
300
350
400
450
0%
20%
40%
60%
80%
100%
Kakaotalk Line Whatsapp
Korean % Global Users
Mobile IM Status
• Kakaotalk is the best popular IM and using rate is over 90% of the smart phone users in
Korea and Kakaotalk PC version was launched in Mar 2013, it opens mobile-PC united
IM era.
• Line from Naver and Mypeople from Daum have only lower number of users.
*Whatsapp has not released Korean users data, but its proportion is only 2% in Korea.
[Mobile IM Global User & Korean User(%)]
Million
35,000
7,000
27,000
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
Kakaotalk Line Mypeople
[The user number of IM in Korea (2013.11)]
Thousand
Source : Onavo 2013. 08, The combination of articles.

17. Ad Network Trend
• Ad Network의 시작

18. Ad Network Trend ; PC
• Each Ad Network has their own unique feature and is selected and executed by type of
targeting tactics and level.
• Ad network Ad spending is increasing in 2013, and expect to increase continuously in
2014, based on below the chart, GDN and Ntree spending.
Network Targeting Tactics Networked Sites
Re-Targeting
Portal, News, etc
Approx. 100
GDN(Google Display AD)
Context/Sites/Interest
Re-marketing
Blog, News, etc
Approx. 50,000
Contextual Targeting
News sites
Approx. 30
RT(Re-targeting)
RT plus, A.RT
Nate, Joins, imbc, etc
Approx. 15
and DC adx, FBX
Other video
network
FIVA, CSA News Sites, Etc.
[Ad Network Feature] [Monthly GDN/Ntree spending in Nasmedia]
Source : Nasmedia Internal data
-
50
100
150
200
250
300
350
400
-
200
400
600
800
1,000
1,200
1,400
1,600
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
14-Jan
14-Feb
14-Mar
GDN ntree
*Mill.
(KRW)
*Mill.
(KRW)

19. Ad Network Trend ; Mobile
Ad Network for Banner CPI Lock Screen
Ad@m Cauly Admob Inmobi Adlatte TNK Adpopcorn Cashslide Cashup
Number of Apps
Networked
8,000+
M. Daum web
10,000 50,000 12,000 Independent 1,000 90 Independent Independent
Monthly PV 15B 12B 9B 8B 350,000
(DAU)
600,000
(DAU)
3,000,000
(DAU)
2,000,000
(DAU)
500,000
(DAU)
App vs Web
Ratio
45% : 55% 90% : 10% 99% : 1% 80% : 20% Only App Only App Only App Only App Only App
OS Ratio
(iOS : android)
15% : 85% 10% : 90% 30% : 70% 10% : 90% unknown 10% : 90% 10% : 90% Only Android Only Android
[ Mobile Ad network & media Feature ]
• Mobile Ads are classified as Banner, CPI and Lock screen by execution type.
• If the marketing goal is maximizing the traffic or event participation, will use Ad networks
for Banner.
And CPI and Lock screen are executed in order to maximize App installation.
(only top tiers written)
DAU; Daily Active User

20. Ad Network / Ad Exchange
Source : baekdal.com 2009 | http://www.baekdal.com/analysis/market-of-information/
• Where is Everyone?

21. • AD Network의 발전
Inventory Level Revenue
Premium Inventory
Intermediate
Level
Inventory
Remnant Inventory
unsold
60%
30%
10%
가치를 부여해서
수익을 확장
Ad Network / Ad Exchange

22. Ad Network / Ad Exchange
• Ad Exchange

23. Ad Network / Ad Exchange

24. Ad Network / Ad Exchange

25. Ad Network / Ad Exchange
• RTB(Real-Time Bidding) / Second Price; 차 순위를 이길 수 있는 최소단위로 Pay

26. • Ad Exchange / DSP 역사
Ad Network / Ad Exchange
In Korea

27. Ad Network / Ad Exchange
• 국내 Ad Network (Ad Exchange를 통한)
Re-targeting
Dynamic Creative
Context/Sites/Interest
Re-targeting
RT plus,
A.RT (Re-targeting)

28. PROSPECT Y2014

29. • Increase sponsorship Ad products due to big sports events in 2014.
; Sochi winter Olympics, Brazil Worldcup and popularity of Korean baseball and MLB.
• Various sites open the pages related to sports events and
expect that big advertisers will launch the sponsorship ad to secure high traffic.
• Their brand awareness and preference will be increased by natural exposure of brand
during the period of sports events.
1. Increase of Sports sponsorship Ad
[Cases using Sponsorship Page]
Case of special page
for World cup
Case of special page
for Winter Olympic game
Case of special page
for Baseball game season

30. 2. Enlargement of Video Ad market
• Expect that the video ad spending and number will incline continuously in 2014.
• Recently, due to the Youtube growth, video ad achieved a rebound from the recent
decline.
• The mobile video service showed a growth, because of real time accessibility which is
an advantage of the smart phone.
0
200
400
600
800
1,000
1,200
1,400
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
Ad Spending(x000) Number of ad
-
5
10
15
20
-
100
200
300
400
500
Mobile Video - Average Duration time (m)
PC Video - Average Play time (m)
Source : : Research AD, Koreanclick, Nasmedia internal data
[Monthly Video Ad Spending Trend] [Monthly Video Media Avg. Duration Time Trend ]

31. 3. Narrowcast in Mobile Ad market
• The Mobile ad is catching up with the Online ad.
Early on, focused on delivering lots of ads to all users, but now important is to find
proper target users.
• Expect that mobile publishers or data analysis agencies research and develop the
various targeting tactics based on their tracking solutions since 2014.
[Mobile Ad Targeting] [Mobile App. Tracking solution]
AS is
To be
Only basic tactics
App category, Device, OS
Time, Day, Frequency
- Interest and similar user
- Re-targeting
For users who visited a website(or App.)
For users who not visited a website(or App.)
For users who visited a website via PC
etc..
Ad Tracker
T-MAT
Party Track
Ad-x Tracking
HasOffers (partnership)
launched in 2012.5
launched in 2013.7
launched in 2013.10
launched in 2013.4
launched in 2013.11
(merged)

32. E O D