korea digital market trend 2019 & travel...ex) global – agoda, booking.com, expedia,...
TRANSCRIPT
KOREA DIGITAL MARKET TREND 2019
& TRAVEL
Sally Lee
Hafa Adai! INDEX
1. DIGITAL TREND Summary
[Source] eMarketer, Digital Ad Spending 2019 (Mar, 2019)
• Global advertising spending worldwide will surpass 665 billion U.S. dollars in 2019 and the expenditure
on digital advertising is expected to reach 50% for the first time in history.
• Mobile advertising market size continues to expand and more than 10% of growth is expected.
• The 90% of total internet users approximately 4.43 billion people are expected to use mobile internet.
▣ Global Advbertising Market Sizes by Media
Newspaper Ad, Magazine Ad, Radio Ad, TV Ad and Others PC Mobile
Digital
(PC+Mobile)
(unit : 100million dollars)
▣ Korea Advertising Market Sizes by Media
• Total advertising spending in South Korea in 2019 is expected 12.4 trillion won (approximately $10.5
billion).
• 'Digital Advertisements' combined ‘PC + MOBILE’ occupy for approximately 40% of the total
advertising expenditure.
• The size of mobile advertising expenditure has grown rapidly by more than 90 percent in the last
four years. It expects to record more than twice as much as PC advertising costs.
(unit : billion dollars)
Digital(PC+Mobile)
[Source] Cheil, SamsungPOP Sector Update_Media (May, 2019)
OOH Newspaper/Magazine MobileBroadcasting PC
(unit : 100million won)
[Source] Nielsen Koreanclick, 3Screen DATA
▣ Generation Z using digital media Characteristics
• Generation Z is expected to lead the mobile-based digital media trend in 2020.
• Generation z is estimated to be 2.6 billion by 2020 and is fastest growing as the most influential
marketing target (generation).
• Severe competition for mobile-based instant services, platforms, and contents are expected for
Z-generation targets.
Generation Z (or Gen Z) refers to the generation born in the mid-1990s to mid. They are used to using IT devices
and have high information processing power and are used to expressing their individuality and creativity using
SNS. As of 2020, the total number of generation Z is around 2.6 billion worldwide
Digital native who grew up with a smartphone
Mobile device usage time takes up more than 70% of the
media device usage time
Communication & Experience Sharing via SNS and Video
Platform Facebook and Twitter generation, pull the
growth of TicTok
Attaching importance to real me and preferring to
untack disconnection Active communication via online
while preference to untack offline
Gen Z spends more time on media than other generations(unit : %)
22
31
52
69
7
10
8
7
70
59
41
24
Gen Z
Gen Y
Gen X
Senior
TV PC Mobile
[Source] Hana Institute of Finance, A Study on the Prospective Leisure-Living Service by the implementation of the 52-hour workweek
▣ Leisure / living services that have recently drawn attention
• Full implementation of a 52-hour workweek for companies with 300 employees or more, effective
from April 1, 2019.
• The capital area - working for the enterprise of middle standing - majorly 30th, 40th male and 20th,
30th female
• Expected the extension for the use of service considering ‘cost’(reduction) and ‘time’(efficiency)
based on the change of the concept for leisure
Home Training
IoT based fitness devices
Health Care
OTT SVC, Webtoon/
Internet Novel
Subscription services,
Social Networking Activity
Culture/Hobby/Education
Online groceries delivery service
Home furnishing, Pets/Plants
Two Jobs to supplement income
Life
Skin Care, Nail Care and
Massage etc.,
Home beauty care devices
Beauty
Domestic/short-distance
overseas travel
Hokangs (2030 Generation)
Camping (Family/Friendly Focused)
Travel / Relaxation
2. Travel Trend
[Source] Korea Tourism Organization Report on domestic departure statistics (Duplicated counting expected)
▣ Domestic Departure Statistics and Tourism Expenditure (unit : per person, $1,000)
• Approximately 28.69 million people traveling overseas in 2018 and approximately $28.4 billion in
tourism expenditure (about 33.4 trillion won per year)
• The growth rate of Koreans traveling overseas has decreased since 2015. However, the size of the
travel market is still growing.
• Industry interpretation is that the reduction in annual outbound travel growth has entered
a "growth stabilization period" due to the popularization of overseas travel.
Domestic Departure Increasing Rate
2015 2016 2017 2018
20.1%
15.9%
18.4%
8.3%
Domestic Departure Statistics Tourism Expenditure ($1,000)
[Source] ] eMFORCEDatelab–SNS DATA
▣ Travel related SNS postings (unit : posting)
• Upload 26.33 million SNS postings related to 'travel' in 2018 (up 238.9% from 2015) in 2017,
Korea saw a sharp rise in the use of annual leave from the workers due to the ‘Several holidays' and
there has been significant growth in travel
[Source] Open Survey, 2019 Summer Vacation Trend Report
[Base : Those who plan to travel overseas for summer vacation, N=469, single answer, %]
*Highlighted in blug: +3%P compared to the total aver.
▣ Travel Arrangement for overseas travel (unit : %)
• Summer Vacation Trend in 2019 : More than 70% preferred self-guided tour, when they are
planning to travel abroad
• 80% of 2030 generation and more than half of 4050 generation prefer self-guided tour
• Increasing experience of travel abroad as well as vitalization on OTA and Meta Search(17p),
especially developing of mobile
Age
20s 30s 40s 50s
(Base) (125) (117) (125) (102)
FIT 87.2 79.5 59.2 52.0
PKG Travel 10.4 14.5 29.6 45.1
HotelPack / Airtel 2.4 6.0 11.2 2.9
5.8
24.1
70.1
Hotel Pack / Airtel PKG Travel FIT
[Source] Open Survey, 2019 Summer Vacation Trend Report [Base: Those who plan to travel overseas for summer vacation , N=469, %]
▣ Best summer vacation destination in 2019 (unit : %)
• 2019 summer vacation trend : preference to Japan and East-southern Asia as travel destinationswhich are effective to use budget and have short distance
• Each 20s,30-40sgive a lot of weight to Japan, East-southern Asia, Guam/Saipan and 50sto travel toEurope.
Europe• 50s>40s• September for 10days• 40% of PKG Travel• 3-4star Hotel or Airbnb• Travel motivation: Cultural Heritage
Site Visit & Natural beauty
11.4%
Guam / Saipan
• 40s>30s• Late July or Late
September for 5days• Mostly FIT• 3-5star Hotel• Searching through Shopping
Platform• Travel motivation: Relaxation
10.7%South-east Asia
• 20-40s• Late August for 5day• Mostly FIT• 3-5star Hotel or Pool Villa• Searching through Agoda• Travel motivation: Relaxation
37.5% China / Hongkong/ Taiwan
• All generation• June for 4days• 33% of PKG Travel• 3-5star Hotel• Travel motivation: Food & Culture
10.7%
North America / Oceania• 30s>40s• Early August to September for 10
days• 3-5star Hotel• Travel motivation: Natural beauty
4.5%Japan
• 20s>30s• July for 3days• Mostly FIT• 3-4star Hotel or Airbnb• Searching through Naver• Travel motivation: Food & Shopping
23.0%
[Source] Open Survey, 2019 Summer Vacation Trend Report [Base : Those who plan to travel overseas for summer vacation, N=469, %]
▣ Korean’s Preferred date for summer vacation to overseas
• Educational institutions for preschool children (kindergarten, preschool etc.) in Korea implement
summer vacation on the first week of August in a lump
• Therefore, 3040 generation that has preschool child takes summer vacation on the first week of
August mostly
• 20s and 40s that try to avoid flocking a massive number of people on the first week of August show
the signs to move to the front and back of that week
June 1~15
June 16~30
July 1~15
August 1~15
July 16~31
August 15~31
September 1~15
September 16~30
[Source] Open Survey, 2019 Summer Vacation Trend Report [Base : Those who plan to travel overseas for summer vacation as FIT, N=329, Multiple, %]
▣ Searching Keywords for FIT
• For FIT, searching the travel information in order of food > area(tourist spot) > accommodation
• There are the most searching for food/restaurants and the least searching for events such as
festivals
• While 40s searches for various information, 20s is somewhat passive
AllAge
20s 30s 40s 50s
(Base) (329) (109) (93) (74) (53)
Restaurant and local food Information 65.1 71.0 79.7 64.2
Tourist Attraction Information 61.5 69.9 68.9 75.5
Accomodation Information 59.6 65.6 62.2 64.2
Ground Transportation Information 45.9 49.5 56.8 54.7
Shopping Spot Information 33.0 44.1 44.6 35.8
Activity Information 38.5 39.8 35.1 35.8
Shopping Item Information 37.6 37.6 45.9 26.4
Festival and Event Information 32.1 29.0 44.6 28.3
Others 0.0 0.0 1.4 3.8
None 8.3 5.4 2.7 5.7
69.9
67.8
62.5
50.8
39.2
37.7
37.7
33.4
0.9
5.8
[Source] Open Survey, 2019 Summer Vacation Trend Report [Base : Those who plan to travel overseas for summer vacation, N=329, 1+2+3 order, %
▣ Budget for the most like to save ▣ Budget for the most like to invest
20s | Japan
30~40s | Southeast Asia,
China, HongKong,
Taiwan
30s | Japan, Guam/Saipan
40s | Guam/Saipan
- Budget for the most like to save airline ticket
- Budget for the most like to invest : In order of food/restaurants > accommodation > shopping
(possibility for difference depends on the ages and travel areas)
- People who select Guam/Saipan : save on airline tickets, invest for shopping
Restaurant
Accommodation
Shopping
Beauty
(Spa, Massage)
Leisure & Activity
Tour
Flight Ticket
Exhibition / Show
3. Media Trend
▣ OTA (Online Travel Agency)
An online travel service platform that collects
numerous contents within the travel category, such
as air and accommodation, to show prices,
quality, reviews, etc. and make payments
ex) Global – Agoda, Booking.com, Expedia,
Hotels.com etc.
Korea – My real trip, Waug Tavel, Triple etc.
▣ META Search (Travel Meta Search Engine)
It is a service that can compare prices of various
travel products at once. It offers the lowest price
recommendation by comparing the amount raised
by travel agencies, hotels, and OTA, and expands its
location into various areas including leisure, ticket,
and guided tours.
ex) Naver, Hotels Combined, Trivago, Skyscanner
etc.
Travel Agencies OTA
TOUR OTA
META Search
[Source] eMFORCEDatelab–SNS DATA
▣ Main Keyword in 2018 / BUZZ Tendency of Social Networks by Major Travel Agents in Korea (unit : posting)
• Extension on the use of OTA(&Meta Search) due to FIT travel increase
• OTA which aggressively targeted mobile devices has led rapid growth every year
• Discount, reservation, price, tour, ticket etc. recorded high searching share
(package for travel agency)
92,67195,200
29,780
32,893
13,61123,395
2.7%↑ 10.5%↑ 71.9%↑
TA OTA Tour OTA
1. Package
2. Travel Product
3. Mileage
4. Fair
5. Guide
1. Discount
2. Reservation
3. Price
4. Search
5. Schedule
1. Tour
2. Ticket
3. Review
4. Entry Ticket
5. Travel Pass
2017 2018
[Source] Open Survey, 2019 Summer Vacation Trend Report [Base : Those who plan to travel overseas for summer vacation as FIT, N=329, %]
• It has strong tendency on OTA which offers comparison and consumption for discounted airline
tickets in airline ticket booking platform
• It is the result that reflects the tendency to save mostly on ‘airline ticket’ - determination on
‘comparison consumption’
• Superiority on comparison of information - except OTA, Naver with convenience of supporting
information is on strong
▣ Flight booking Channels (unit : %)
Multiple response Single response
Skyscanner
Expedia
Ttang.com
Trip.com
Hanatour
Modetour
Naver
WeMakePrice
OTA
Naver
[Base : Those who plan to travel overseas for summer vacation as FIT, N=329, %]
• For making a reservation of accommodation, OTA has the strong usage but also Naver has high
usage
• In case of ‘comparison consumption’, supporting the information about ‘discounted price’ is the
most important term of use, but for booking an accommodation, it is necessary to offer the
information about review/location/interior/service as well as ‘price’
▣ Making a reservation of accommodation (unit : %)
Multiple response Single response
Hotels.com
HotelsCombined
Expedia
Agoda
Trivago.com
Booking.com
Airbnb
Skyscanner
Naver
TMON
WeMakePrice
11st
OTA
[Source] Open Survey, 2019 Summer Vacation Trend Report
Naver
[Source] Open Survey, 2019 Summer Vacation Trend Report [Base : Open Survey, 2019 Summer Vacation Trend Report]
20s | Japan
40~50s | Guam/Saipan
▣ Channel to search information on travel for FIT
(Multiple response, unit : %)
▣ Social Networking Platform to search
detailed information on travel (Multiple response, unit : %)
• Portal site based on the supercity of offering information and popularity has the most usage for
acquisition of travel information
• For learning information, young generation aggressively uses SNS(#hashtag) and travel app
(Tour OTA)
• SNS and YouTube are noticed as major channel to prove the travel information due to
generalization of learning information via image/video
Internet Portal Site
Travel Related Community(Naver Café etc)
SNS (Instagram, Facebook etc)
Friend, Family, Acquaintance
Travel Related App (My Real Trip, Triple)
Travel Related Book & Newspaper
TV Program(Travel themed program)
Visitors Bureau
Travel Agencies’ Mobile App/Website
Speak with Travel Agents
Others
Naver
4. Digital Media Advertising
• Mobile-optimized digital media. Google is also one of the best advertising network in
Korea
Search Network Display Network Video
Network
• YouTube is Top media for all generations, from teenagers to 50s
• Instagram, which is hot for the younger generation
• On the other hand, Facebook's growth is slowing down
• Various global OTAs are emerging in South Korea and are expanding their market
shares through extensive marketing activities
• OTA in Korea that is attempting various services such as providing travel information,
reservation and purchasing based on mobile-optimized mobile apps
• KOREA No.1 Internet Portal Site and Search Engine
1
2
3
• Search Window
• Tab Menu
• Related Keyword
Search
• Power Link
• Related Image
• Related Information
• Flight Ticket / Hotel
Travel PKG
• Recommended
travel attraction
on Guam
• Recommendation
on Guam Travel
• route
• Power Contents
• VIEW Menu
(Tag)
• VIEW Contents
4
• Naver
Shopping
Ads
• Digital
Banner
5
• News
• Video
• Web
page
• Application
Information
• Related Keyword Search
• Rising Topic Chart
• Tool Pane
• App Menu Category
• NAVER's OTA Service Strategies for Mobile-Optimized
• Naver's popular community cafe “Guam Free(괌자길)” have 630,000 members
• Naver is planning to introduce a full-scale advertising campaign
: Content Creator Profit Improvement, Various Advertisements for Small Business
▣ Naver Blog Posting ▣ Naver Blog Contents Advertising Expected Effect
Naver channels utilization Strategies for creating landing page
• Guest who have entered through Naver search engine (PC and MOBILE) are logged
in using Naver ID without site signing up
• Naver supports the other site use and purchase of member-based services only
through Naver ID
Strategies for the landing page renewal or creating
• A service to order/pay conveniently and safely anywhere in Naver Pay's merchant
shopping mall using only Naver ID.
• Naver Pay recorded the number one payment amount out of 2,000 apps based on
AOS (WiseApp DATA) as of Mar, 2019
Overall
Suggestions for Attracting Tourists to Guam
40s > 30s generation customers
Hope to travel overseas in mid of August to September for 5days1
Mostly FIT, Book for 3~5star Hotel2
Save money on airline tickets, invest for shopping3
Travel motivation is relaxation but highly interest in shopping4
Booking through OTA (Discount, Reservation, Price, Tour Ticket)5
Information research by utilizing Naver and SNS
(4050s are using Naver Blog and 20s are using Instagram 6
To improve marketing efficiency
by utilizing Naver platform targeting Korean customers7
① Login Service with Naver ID
② Naver Pay
③ Naver Flight Ticket Booking & Hotel Booking
④ Naver Community (Naver Blog, Naver Café )
⑤ Naver Ads(Banner Ads, Search Ads, Shopping Ads)
