This deck presents an overview and trend on digital marketing in Korea

1. Digital Media Trend
Korea’s Digital Media Market Review
Presented by : 24/7 Real Media, Inc.
May, 7 2008
Contact : 82-2-3459-2323, james.yoon@247realmedia.com
The Science of Digital Marketing
Copyright © 2008, 24/7 Real Media - A WPP Company
24/7 Real Media — leader in providing multi-platform marketing strategies that include targeted,
response-oriented Web advertising campaigns, search engine marketing, ad serving, Web analytics, and implementation.
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2. 24/7 Real Media, a WPP Company
Recognized leader in the digital marketing industry
– Rated best ad server and best advertising network
– The #1 rated search marketing technology
– A leading privacy advocate and proactive member of the IAB
Reaches a Global Population
– 20 offices in 12 countries
– Over 400 billion global advertising impressions served monthly
– SEM technology interfaces with over 50 search and shopping engines worldwide
Operates a suite of media and technology products and services
Media Networks Technology Solutions
• The Global Web Alliance • OAS® for Publishers
• Custom Solutions • OAS for E-commerce
• Decide DNA® - SEM
• Custom Solutions
• Media Planning & Buying (GRP)
• Online Survey
• Rich Media
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3. Contents
Ⅰ. Internet
Ⅱ. IPTV
Ⅲ. Widget
Ⅳ. The Future of Digital Marketing

4. Internet Population and Penetration
The internet population of Korea is 34 million,
76% of internet penetration
(In the US, 188 million internet population,65% penetration)
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5. Internet Usage by Age Group
Almost all of 10s-30s population are using Internet
(10s – 99.8%, 20s - 99.3%, 30s - 96.5%)
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6. Internet as a major news channel
In the past, the major sources of news were TV, radio, and newspapers.
But for now, the Internet became the most channel for news.
(The News Usage Rate : Internet - 48.3%, TV - 42.8% in 2006)
TV
Internet
Newspaper
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7. Page 6
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Broadband Country

8. Quoting “Digital Korea” (by Tomi Ahonen, August 2007)
1. Over 50% citizen use Internet banking
2. 63% use mobile phones for payment
3. 25% of all Visa cards are provided by mobile phone
4. m-commerce transactions for non-telecom goods
exceeded $1 bln in 2006
5. 73.6% filed taxes online as of January 2006
6. Electronic Signature Law and e-Commerce Law
7. Online game market is 57% of the total game market in Korea
(5% in US, 2.5% in Japan, shifting to online)
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9. Weekly Media Consumption
Internet scored the second most consumed media after TV,
Especially, internet is more consumed by male in their 20s-30s than TV
Share of Weekly Media Consumption by Media Share of Weekly Media Consumption by Age Group
DMB
Radio
Newspaper
TV
Internet
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10. Korea’s Top Domain Websites
97% of Korean Internet population use Naver.
Local publishers perform better than global palyers
(%=penetration rate)
97%
90%
74% 72%
59% 58% 57%
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11. Naver Front Page
Search real-
time
search
widget words
Log in AD (weather,
calendar, etc.)
Categories AD AD
News Home
AD
Finance
Today s’
’
’
’
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sgn tsoP s’yadoT
sgniitsoP s’yadoT
sgniitsoP s’yadoT
Shopping
sp T s’yadoT
sp T s’yadoT
spiiT s’yadoT
spiiT s’yadoT (sale issues)
Real-time
search words
by category
(rolling)
seussI s’yadoT
Event
Categories
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12. Page 11
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(In the US, internet ad takes 7.5% of total ad spend)
15.7% of total ad spend.
Internet ad revenue in 2007 reached $1.2bn,
Internet Ad Spending(Billing)

13. Page 12
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showing an increase of 20.2% growth compared to the prior year.
reached 6.2% of total ad spend,
$482 million spent on display ad in 2007,
Display Ad Spend

14. Search Ad Spend
$748 million spent on search engine marketing in 2007,
reached 9.6% of total ad spend,
showing an increase of 53% compared to the prior year.
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15. The Web 2.0 Era
Web 2.0 brought changes of marketing method
- from showing to communicating.
Marketing1.0 Marketing2.0
Channel Mass media Interactive online channel
1:N N:N
Relations
(advertiser : consumer) (consumer : consumer)
Communication
Broadcast Conversation
method
- Create and spread brand message by
Communication - Deliver brand message
consumer participation
object - Raise sales
- Activate consumer communication
The main purpose Brand awareness Brand experience
tool Pop-Up, Email, Banner ▪ ▪ ▪ Blog, Mini-hompy, UGC ▪ ▪ ▪
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16. Online-centric marketing
Maeil Dairy Industry Co., Ltd. – “Banana is originally white”
Maeil Dairy Industry’s banana flavored milk ‘banana is originally
Brand
white’
Period Feb.2007~2008
- In the form of hidden camera, the video shows the marker’s
concern on the product humorously.
- Using only 6mm camera, this series is made of three different
Detail episodes.
- Creating new images and trends of the product
- Opening the viral video and theme song contests, games and other
events.
After spreading the viral videos on the Internet, publishing them on
Strategy
other media.
- Using the best aspects of the low-budget videos and humors.
- Proving the power of the golden idea and UGC.
Result - Selling 30 millions of bottles in 9 months after launching.
episode 1 episode 2 episode 3 - Grand prize on the IDF(International Dariy Federation) awards in
2007
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17. Digital Marketing Channels
Various online marketing channel which advertisers can leverage
UGC
(User Generated Contents)
Viral
Blog
On-line PR
Brand Minihompy
Display ad
(Banner..)
Chatting
Search
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18. Blog
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19. Page 18
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That means 120,000 blogs are being created every day
There were 70 million blogs as of March 2007
Worldwide Blog Usage Trend

20. Page 19
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84%
The blog usage rate of 20s-30s reached over 99%.
84% of Korean internet population use blogs.
Blog Usage Trend

21. Blog Usage Trend
Naver leads the pack, followed by Daum and Yahoo!
Recently, professional blog sites tistory picked up
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22. Brand Blog vs. Individual Blog
There are two types of brand blog - the official brand blog and the individual one.
The official brand blog marketing is more popular in Korea
type1. running an official brand blog type2. utilizing an individual blog
CEO netizen CEO netizen
Official Individual blog
management netizen management netizen
type …
Brand
… … Individual blog
…
blog
administrator netizen management Individual blog netizen
Raising the number of visitors by running the Building intimacy with netizens by posting
Strength
unified official blog personal contents
Possible disactivation on running the blog
Individual blogs may have inappropriate and
Weakness under the circumstances of non-flexible
contents that can lead unintentional effect.
management
GM - ‘Fast Lane’ Boeing airplane - Randy’s Journal
Case
MS - ‘Channel 9’ MS employee’s individual blogs
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23. Brand Blog Case
Woongjin Cuchen
Brand Woongjin’s rice cooker ‘Cuchen’
Target 20-30s aged newly weds and housewives
Period March 20 2006 ~ 1 month
<e-wonderful rice>
The housewife bloggers posted pictures and recipes of
dishes made by Cuchen rice cooker. In case of popular
posting, more than 100 scraps were made.
Campaign
<Housewife blogger support campaign>
A program gives the blog members sponsorship on a
purpose of supporting housewives. The selected members
can be provided chances to attend a free cooking class.
Total number of visitors : 449,373
Total number of subscribers : 35,384
Results
Number of bulletins : 19,812
Number of reports : over 1,100
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24. Minihompy (1999)
(2003)
(2004)
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25. Cyworld’s Minihompy (SNS)
Acorn : Cyworld’s cyber currency
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26. Brand Minihompy Case
Advertiser A6
Refresh brand image to attract 20s aged
Object
consumers into
Period August 2005
Event1. apply for the movie preview by putting
codes on the receipt of A6 products
Event2. upload self stylish photo shots
Events Event3. give notice of the imitation products of A6
to the minihompy
Event4. write poets inspired by the brand
Event5. make comments on the brand A6
Total number of visitor : 193,464
Result Number of scraps : 7,094
Number of bulletins: 14,751
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27. Minihompy Usage Trend
By far, Cyworld has led minihompy market.
Cyworld ‘minihompy’
Daum ‘planet’
Sayclub ‘minihompy’
Buddybuddy ‘minihopmy’
Myspace Korea launching in April 2008
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28. Page 27
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The usage rate of 20s reached over 85%.
53% of Korean internet user enjoy minihompy.
Minihompy Usage Trend

29. Blog vs. Minihompy
Brand Blog is effective for delivering information,
while brand minihompy is for communicating with neighbors.
Brand Blog Brand Minihompy
Creating
Created by blog administrator and visitors Created and managed by advertiser
Contents
Object Building brand identity for the visitors Publicize brand events and campaigns
Building intimate communication with core
Delivering brand image and information
Effect targets by forming Ilchon(neighbors) and
rapidly
sending private messages, etc.
Top
Naver brand blog Cyworld brand minihompy
Service
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30. From info-centric to human-centric
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31. UGC / Viral
(User Generated Contents)
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32. Page 31
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40.7%
38.8%
/Vote
Scrap Recommend
28.8%
Do all
41.6% 43.8%
review comment
55.2%
[ UGC Viral Activities Trend ]
and 55.2% have taken part in any viral activities of UGC.
According to the research*, 35.2% of respondents have created UGC
UGC Usage Trend

33. Page 32
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Daum TVpot and Pandora TV are the leading UGC publishers.
UGC Usage Trend

34. Brand UGC Case
Nongshim – Ozzam noodle
Brand Nongshim’s ‘Ozzam’ noodle
Campaign Finding the CF star of Nongshim noodle!
A UGC contest titled ‘my love for Ozzam’
Detail Pick the best video by user voting and broadcast the winner CF
on air.
Views : 1,100,000
Results Uploads : 170
(reported Nongshim’s Ozzam Case Study, June 2007)
Click
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35. Successful Case of Brand UGC
CocaCola & Mentos
Brand CocaCola & Mentos
Campaign Diet Coke + Mentos : The Human Experiment Video
What happens if the diet coke meets mentos candy? The
Detail chemistry was so amazing that even makes the water
fountain!
Views : over 10,000,000 in US, 2007
Results
Click Favorited : 14,585 (reported in June,2007)
Dove Evolution
Brand Dove
Campaign Dove Real Beauty Campaign : the Evolution
A 75-second viral film created on a purpose of warning the
Detail
distorted ideas of beauty.
Views : over 12,000,000 since 2006
Results
Favorited : 10,103 (reported in June,2007)
Click
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36. Viral Marketing Strategy
Eye-catching creatives are crucial to the success of viral campaign,
creating viral buzz by spreading them on a web 2.0 platform
Use of
Viral web 2.0
Build a viral
network
contents platform
Internet UGC site Expanding content ad solution
Community site ex) Adgger.com
Blog site
Creating viral contents (over 95%)
Delivering brand message (under 5%)
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37. Search
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38. Global Ranking of Search Engines
Korean search engine Naver ranked as world’s 5th largest search
engine by comScore despite regional limitation
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39. Result Page line with WOM
Search Result (Linked with Viral Contents)
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40. Result Page line with WOM
Search Result (Linked with Viral Contents)
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41. Search Engine Trend in Korea
The total number of search queries reached 5 billion as of March 2008.
With 71% query share, Naver successfully monetized it.
( Search ad revenue of Naver in 2007 : $487m, 63% YoY Growth)
(%=query share)
(71%)
(17%)
(5%) (4%)
(2%) (1%)
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42. Search Ad Model
Google vs. Naver
Google shows organic search results along with adwords ads,while
Naver shows classified search results along with Overture sponsor-
link and other several CPM and CPC text ads.
Overture
Sponsor link (CPC)
Power link (CPC)
Adwords
(CPC)
Plus Pro (CPM)
Biz site (CPC)
[ Keyword results of ‘Coffee’ on each sites]
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43. The Present & Future of Digital Marketing
Ⅰ. Internet
Ⅱ. IPTV
Ⅲ. Widget
Ⅳ. The Future of Digital Marketing
Page 42

44. IPTV Subscribers
The number of IPTV subscribers in Korea reached 1.4 million as of March 2008,
expected to grow to 2.7 million by the year-end.
(Hana TV-SK Telecom, Mega TV-Korea Telecom)
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45. IPTV Advertising
HanaTV only provides pre-roll video ads in front of VOD service,
but interactive advertising will be introduced after June 2008
Click
Click
Now Available
Home menu Ad
Loading Ad
Pop Up
DAL front screen
Promotion front screen
Branding Ad Text Ad
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46. Example of coupon download
Users can download discount coupon onto their mobile and
get discount at offline stores
Baskin Robbins seasonal event
1. Brand introduction
2. View production video
3. Get a coupon
→ put mobile number
010-9314-0000
<Result Analysis >
- sale increase
인할 크이케 림스크이아
다니습했착도 이폰쿠 . - visit rate of the advertiser page
- number of download coupons
Exchange the coupon in any BR store - exchange rate of coupons
- advertising effect by regions
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47. The Present & Future of Digital Marketing
Ⅰ. Internet
Ⅱ. IPTV
Ⅲ. Widget
Ⅳ. The Future of Digital Marketing
Page 46

48. Widget
Desktop widget vs. web widget
type providers URL detail
launched on January 2006
Naver desktop Desktop.naver.com
direct access and use naver services on desktop
launched on September 2006
Daum widget bar Widget.daum.net
direct access and use daum services on desktop
Desktop widget well-made install base widget with fancy design
Daltong www.daltong.com Used for CRM by inews24 and CTS TV.
Miniple www.miniple.co.kr Install base widget, recent development of version 3.0
launched on August 2006
Wizard.com www.wzd.com
the biggest widget provider, running over 80 widgets for 30 companies
Web widget
launched on January 2007
Cyworld home 2 Home.cyworld.com providing 20 web widgets for ‘home2’
in a progress cooperating with wizard.com
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49. Page 48
9.2% rise in the number of customer(15,143 -> 16,531) and 31.4% rise in total sales(14billions -> 18billions). Results
stneve yliad
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repapswen detnirp : ngiseD -
radnelac
Paper Stand
fo smrof suoiraV : ngiseD -
Stand/Table Calendar
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Luxury Watch
Weather Clock
Lotte Department Store
Case of Desktop Widget AD

50. Web Widget AD
Uniqlo
Uniqlo’s Uniqlock Campaign is the most successful case of widget marketing.
Uniqlock widget combined with music, dance and a clock has raised Uniqlo’s brand awareness internationally.
27,793 Uniqlock had been installed in 76 contries, reached 71,204,940 views(Jan.29, 2008)
Click
Click
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51. Web Widget AD
Wall Street Institute
Korea’s first web widget marketing case published by Wizard Works and Wall Street Institute.
A ‘smart’ widget functions as a counter in blogs, showing a character growing in it, using English.
Providing simple English expressions and the weather and clock service.
Click
Click
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52. The Present & Future of Digital Marketing
Ⅰ. Internet
Ⅱ. IPTV
Ⅲ. Widget
Ⅳ. The Future of Digital Marketing
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53. Evolution on the Web
The Web environment is evolving rapidly
Web 1.0 Web 2.0 Web 3.0
one -way message Interactive
World wide web Wiki
Text/graphics based
Contact us
Pop-up
Portal
Video
Blog
UCC
?
Viral
E-mail
Social Networks
Spam
…
Spam
Spam
…
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54. Web3.0 ?
= I’m the Center of Web
Recommendation Personalization
Artificial Intelligence
Filtering Organization
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55. Purina as content aggregator
The goal for PetCharts is to help people find good stuff they like
Posts are
culled from
both main
Flickr stream news
Photos organization
and specialty
pet blogs
Lets users vote
Youtube content up or
Videos down
Page 54 Click
Click

56. Thank
24/7 Real Media will be with you in the web 3.0 era
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