Ad spending to increase in October: KOBACO

[Courtesy of KOBACO]

Advertising spending in South Korea is expected to edge up in October, led by the construction, energy, and household supplies sectors.

The Korea Broadcasting Advertising Corp. (KOBACO) said on Wednesday that the Korea Advertising Index (KAI) was 100.2 for October.

The KAI, a nationally authorized data by Statistics Korea, is an index derived by collecting plans for ad spending for the following month from more than 570 advertisers in the country.

An index above the 100 mark means more advertisers in the industry said they would increase their ad spending, whereas a figure below 100 indicates more advertisers are planning to cut ad spending.

The KAI for October is 100.2, a slight increase in ad spending from September. The index for newspapers was 100.7, followed by radio at 100.5, and terrestrial television at 100.4.

By sector, ad spending is expected to increase in the construction, building and property sector, which involves plants and renewable energy, with its index standing at 104.3, and also in the household supplies sector, including heating devices, whose index was 103.7.

Major advertisers cited the launch of new eco-friendly, environment, social, and government (ESG) projects aimed at overcoming the economic downturn and increased promotion of equipment to prepare for the winter season as catalysts for the expected increase in ad spending.

The survey data is open to the public, and the report and figures can be downloaded from the KOBACO and the Korean Statistical Information Service’s websites.