Small PP Operators Seek a Lifeline Through Targeted Advertising; 3 Associations Mount Joint Response
IT DAILY ·
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Small program providers (PP) are seeking to expand the market with data-driven, customized advertising amid a shrinking broadcast advertising market.
The PP Council of the Korea Cable TV Association, the Korea Broadcasting Channel Providers Association, and the Korea Broadcasting Channel Promotion Association signed a memorandum of understanding (MOU) on the 8th to activate advertising for small PP.
The three groups agreed to cooperate on the digital transition of broadcast advertising, the discovery of new ad models, and the expansion of the small PP advertising market, as well as improvements to policies and systems.
As the broadcast advertising market shrinks, small program providers (PP) are seeking to expand the ad market through data-driven, customized advertising. In response, three PP industry groups have agreed to jointly pursue new ad models and improvements to policies and systems.
The PP Council of the Korea Cable TV Association, the Korea Broadcasting Channel Providers Association, and the Korea Broadcasting Channel Promotion Association signed a memorandum of understanding (MOU) on the activation of advertising for small PP on the 8th. The three groups agreed to promote joint projects for the digital transition of broadcast advertising, the discovery of new ad models, and the expansion of the small PP advertising market.
They also agreed to cooperate in expanding participation in government and public-sector advertising markets and in improving policies and systems related to broadcast advertising. The signing ceremony for the MOU on activating digital advertising for small PP was attended by An Seung-hyeon, chairman of the Korea Broadcasting Channel Providers Association; Park Seong-ho, chairman of the PP Council of the Korea Cable TV Association; and Baek Seung-il, chairman of the Korea Broadcasting Channel Promotion Association.
This cooperation comes as the broadcast advertising market continues to contract. According to KOBACO's '2025 Broadcast and Telecommunications Advertising Expenditure Survey,' PP advertising spending is projected to fall 21.7% from KRW 1.7829 trillion in 2024 to KRW 1.3967 trillion this year. Total broadcast advertising spending was also projected to decline from KRW 3.2191 trillion to KRW 2.5583 trillion. By contrast, online advertising spending was forecast to rise from KRW 10.1011 trillion to KRW 11.4945 trillion.
In this environment, the area small PP operators are focusing on is data-based targeted advertising. The PP industry said it can use mobile usage behavior data to segment ad targets by interests, lifestyle, and user characteristics. It also said ads can be delivered by region, down to the city and county level.
Small PP operators also highlighted their price competitiveness. Based on the PP industry standard, the average CPM for small PP digital advertising is about KRW 5,000, and CPM refers to the cost advertisers pay for 1,000 ad impressions. The CPM for OTT advertising cited by the industry is in the KRW 30,000–50,000 range, and the PP industry emphasized the cost competitiveness of small PP digital advertising using that comparison.
After the agreement, the three groups plan to determine specific joint projects and role sharing through working-level consultations, and will also operate a working-level council if needed. The agreement period is 3 years from the date of signing.
An industry official said the PP sector expects this MOU to serve as an opportunity to enhance the advertising competitiveness of small PP operators and expand new opportunities in the advertising market. The official added that, based on the close cooperation of the three groups, they will actively promote the competitiveness of small PP advertising products and work to turn that into tangible business results.
Source: IT DAILY · Kim Byeong-ju
Original: https://www.itdaily.kr/news/articleView.html?idxno=241483
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Source: IT DAILY
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