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Music Streaming Advertising - South Korea

South Korea

The Music Streaming Advertising market in South Korea is projected to reach a revenue of US$167.40m by 2024.
This represents a significant growth potential for the industry.
Furthermore, it is expected that the market will continue to thrive with an annual growth rate (CAGR 2024-2027) of 2.66%.
This will result in a projected market volume of US$181.10m by 2027.
In terms of user base, the Music Streaming Advertising market in South Korea is expected to see a substantial increase.
The number of users is projected to amount to 11.7m users by 2027.
This indicates a growing interest and adoption of music streaming platforms in the country.
User penetration, which measures the percentage of the population using music streaming services, is also expected to rise.
It is projected to reach 21.6% in 2024 and is expected to hit 22.8% by 2027.
This indicates a growing acceptance and popularity of music streaming services among the South Korean population.
When compared globally, it is noteworthy that United States is expected to generate the most revenue in the Music Streaming Advertising market.
In 2024, the projected revenue for the United States is estimated to be US$2,954.00m.
This highlights the dominance and strength of the US market in this sector.
Lastly, the average revenue per user (ARPU) in the South Korean Music Streaming Advertising market is projected to amount to US$15.09 by 2024.
This metric reflects the average revenue generated per user and provides insights into the financial performance of the market.
Overall, the Music Streaming Advertising market in South Korea presents a promising landscape with projected revenue growth, increasing user base, and a rising ARPU.
This market segment is poised for further development and success in the coming years.
South Korea's music streaming advertising market is experiencing rapid growth, driven by the popularity of K-pop and the widespread use of streaming platforms like Melon and Genie.

Key regions: Asia, United Kingdom, France, United States, South Korea

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Analyst Opinion

Music streaming services have become a popular platform for advertisers to reach consumers, and several trends are emerging that are shaping the industry. One of the most notable trends is the increasing use of personalized ads, which use data analytics to deliver ads that are tailored to the listener's preferences and interests. This has made music streaming advertising more effective and engaging, as listeners are more likely to respond positively to ads that resonate with their tastes.

Music streaming advertising has seen strong growth in recent years, driven by several factors. One key factor is the rapid growth of music streaming services themselves, with platforms like Spotify and Apple Music attracting millions of users worldwide. This has created a large and diverse audience for advertisers to reach, including both free and paid subscribers. Additionally, music streaming advertising offers several advantages over traditional forms of advertising, such as radio and TV. Music streamers are often highly engaged with the platform, spending hours listening to music each day, which provides ample opportunities for advertisers to target them with personalized ads.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on music streaming advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers streaming audio ads.

Modeling approach:

market size is determined by a combined top-down and bottom-up approach. We use annual financial reports of the market-leading companies and industry associations, third-party reports, web traffic, and survey results from our primary research (e.g., Statista Global Consumer Survey) to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as GDP, internet users, consumer spending, and digital consumer spending.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market. For instance, the S-curve function is well suited to forecast digital products due to the non-linear growth of technology adoption, whereas exponential trend smoothing (ETS) is more suited for projecting steady growth in traditional advertising markets.

Additional notes:

Data is modeled using current exchange rates. The impacts of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice per year in case market dynamics change.