Internet advertising revenue in South Korea 2014-2024

South Korea's internet advertising revenue is projected to decrease to 1.84 trillion South Korean won in 2024, marking a decline from previous years. However, spending on online advertisements has simultaneously been growing, and has shown no signs of slowing down. In 2023, most of this spending was for search, video, and banner ads.

YouTube’s advertising dominance

YouTube dominates the online advertising space in South Korea, with a potential advertising reach of around 44 million people as of January 2024, far surpassing other social media platforms. This was followed by Instagram, showing a trend favoring video and image-based social media platforms over more traditionally text-based ones. While the preference for YouTube and Instagram is reflected in spending on online video ads, such types of ads came second in terms of overall spending on different online ad formats.

The rise of influencer advertising

A 2023 survey found that over 45 percent of respondents had purchased influencer-endorsed products, with YouTubers being the most common type of influencer people bought products from. This further aligns with the platform’s overall success as a social media marketing medium. While spending on influencer advertising was low overall in South Korea, the fact that entertainment value was the main driver for clicking on social media ads in 2023 is a useful foundation for the potential expansion of the influencer sector.