& TRAVEL Sally Lee INDEX Hafa Adai! 1. DIGITAL TREND Summary - - PowerPoint PPT Presentation

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
• n 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 Mobile Broadcasting 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

• verseas 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 destinations which 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 to Europe. 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

All Age 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 TA (Onl nline Tr 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 META Search (Tr Travel Me Meta Search En 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)

92,671 95,200 29,780 32,893 13,611 23,395 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

• n Guam
• Recommendation
• n 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 5days

1

Mostly FIT, Book for 3~5star Hotel

2

Save money on airline tickets, invest for shopping

3

Travel motivation is relaxation but highly interest in shopping

4

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 customers

7

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)

Thank you

Sally Lee - iah43lab@naver.com