S. Korea's advertising market likely to expand next year, report shows

SEOUL, Dec. 10 (Yonhap) -- The South Korean advertising market is likely to grow
next year on hopes for an economic recovery, a report showed Thursday.
A barometer released by the Korea Broadcast Advertising Corp. (KOBACO), a
state-sponsored agency with a monopoly on terrestrial TV airtime sales, showed
clear intention to spend more on ads by local companies next year.
The Korea Advertising Index (KAI) stood at 151.9 points for 2010, indicating
strong demand in the market. The survey was conducted on 400 major companies in
the country, out of which 246 responded.
A figure above 100 indicates an increase in spending on ads and the opposite for
a reading below 100.
Out of the 246 respondents, 138 companies said they will increase their budget
for ads next year, while 21 said they will contract it.
Food companies will increase their expenditure the most, with the index showing
184.6 points, according to the KAI. They were followed by retail and shopping
sectors with 184.4 points, computer and IT companies with 177.3 points, chemical
industries with 170.1 points and builders and real-estate companies with 169.8
points.
"Boosted by the Winter Olympics and the World Cup slated for 2010, companies will
increase their spending," said KOBACO in a statement.
Spending on cable TV and terrestrial TV advertising will grow most with 142.6
points and 140.0 points on the KAI, respectively. The index for Internet
advertising was 133.6 points, followed by newspaper advertising with 126.1
points.
ygkim@yna.co.kr
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