As per MRFR analysis, the South Korea In-App Advertising Market Size was estimated at 2.7 (USD Billion) in 2023.The South Korea In-App Advertising Market is expected to grow from 3.5(USD Billion) in 2024 to 20 (USD Billion) by 2035. The South Korea In-App Advertising Market CAGR (growth rate) is expected to be around 17.17% during the forecast period (2025 - 2035).
Key South Korea In-App Advertising Market Trends Highlighted
The rise in mobile app usage, especially among younger groups that actively interact with digital material on a regular basis, is propelling the South Korean in-app advertising market's notable expansion. In-app advertising has become a crucial tactic for companies trying to successfully reach customers as a result of the shift towards mobile platforms.
The high rate of smartphone adoption in South Korea, where the great majority of people use smartphones for a variety of purposes, such as entertainment and shopping, is another important market driver. Because advertisers want to interact with users more personally, this has raised the demand for targeted advertising choices.
There are chances to improve in-app ad formats, like interactive and video commercials, which are becoming more popular in South Korea since they are better at grabbing users' attention than static ads. Additionally, the growth of mobile gaming and esports has opened up new channels for in-app advertising, giving companies creative ways to engage with customers.
Because of its popularity and established industry, South Korea's gaming market presents a great opportunity for advertisers to consider collaborations or sponsorships. The usage of AI-driven ad technologies and advanced analytics has increased recently in South Korea, allowing advertisers to tailor their campaigns to user preferences and behavior.Because advertisers may now target particular audience segments with their messaging, this advancement enables more effective ad placements and more user engagement.
Additionally, businesses are adopting ethical advertising strategies while maintaining effective messaging due to the increased emphasis on privacy and data protection. All things considered, South Korea's in-app advertising business is expected to grow rapidly due to both shifting consumer habits and technology breakthroughs.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
South Korea In-App Advertising Market Drivers
Increasing Smartphone Penetration
In South Korea, smartphone penetration has been steadily increasing, with approximately 95% of the population possessing a smartphone as of recent reports. This high adoption rate is driving the South Korea In-App Advertising Market, as users spend a significant amount of time on mobile applications.
According to the Ministry of Science and ICT, South Korean citizens spend an average of over 5 hours a day on their smartphones, primarily using applications for entertainment, social networking, and shopping.
Major tech companies like Samsung and LG have contributed to the smartphone boom by consistently innovating and providing affordable, high-quality devices that cater to diverse user needs. As more consumers adopt smartphone technology, the opportunities for brands to engage users through tailored in-app advertisements increase, fueling market growth.
Growth of Mobile Gaming Industry
The mobile gaming sector in South Korea has witnessed exponential growth, with revenues projected to reach approximately 3.3 trillion Korean Won in 2024, according to industry sources. This surge can be attributed to the increasing popularity of mobile gaming among various demographics, particularly among younger users.
Companies like Netmarble and NCSOFT are leading this charge, developing captivating games that create substantial in-app advertising opportunities.
The prevalence of Esports tournaments and mobile tournaments has further promoted mobile gaming, enhancing user engagement and resulting in better targeting for in-app advertisements. This trend illuminates the significant potential for advertisers to capture the attention of the growing mobile gaming audience in the South Korea In-App Advertising Market.
Advancements in Data Analytics
The use of advanced data analytics techniques has become a crucial driver for the South Korea In-App Advertising Market. With improved data collection and consumer behavior analysis methods, businesses can tailor their advertisements more effectively.
According to the Korean Statistical Information Service, data analytics in advertising increased by over 25% from the previous year due to technological advancements in artificial intelligence and machine learning.
Companies like Kakao and Naver are leveraging big data analytics to understand user preferences and optimize in-app advertising strategies. This capability not only enhances the relevance of advertisements seen by users but also increases the return on investment for advertisers, encouraging greater spending in the South Korea In-App Advertising Market.
In-App Advertising Market Type Insights
The South Korea In-App Advertising Market is characterized by a diverse range of formats, each contributing uniquely to the overall digital advertising landscape in the region. Native ads, designed to blend seamlessly with app content, have gained popularity as they provide users with a less intrusive advertising experience, leading to higher engagement rates.
This format effectively captures user attention without disrupting the overall app functionality, making it a preferred choice for advertisers seeking authentic connections with their audience. On the other hand, video ads have emerged as a dominant force in the South Korean market, capitalizing on the increasing consumption of video content among mobile users.
With the country’s strong 5G infrastructure, video ads are able to offer high-quality visuals and interactivity, significantly enhancing user engagement and driving conversions. Banner ads, while more traditional, continue to hold a place in the market, particularly for brand awareness campaigns.
Their straightforward design and ease of placement make them an accessible option for many advertisers; however, they face challenges with ad fatigue among users who may overlook static placements.Rich media ads represent an evolving opportunity within the South Korea In-App Advertising Market. These ads integrate multimedia elements such as animations and interactivity, providing a richer viewing experience that can significantly capture user interest and drive action.
Interstitial ads, often used to capture the full screen, offer an effective way to ensure that the advertisement is seen; however, they must be used judiciously to avoid disrupting the user experience. This format is especially significant in mobile gaming applications, where high engagement levels provide advertisers with valuable opportunities to reach targeted demographics.
The competition in the South Korean digital landscape continues to drive innovation across these types, pushing advertisers to optimize their strategies and adopt formats that align with the expectations and preferences of tech-savvy South Korean consumers.With rapid advancements in ad technology and increased smartphone penetration, the market for these advertising types is anticipated to continue flourishing, providing advertisers with diverse options to engage audiences effectively.
As businesses increasingly recognize the importance of leveraging various advertising formats such as Native ads, Video ads, Banner ads, Rich media ads, and Interstitial ads, the potential for growth in the South Korea In-App Advertising Market remains promising.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
In-App Advertising Market Platform Insights
The Platform segment of the South Korea In-App Advertising Market plays a crucial role in shaping the overall landscape of digital marketing in the region, driven significantly by mobile technology adoption. IOS and Android are the two primary operating systems dominating the mobile ecosystem, collectively fueling growth through targeted advertising strategies that enhance user engagement.
Given South Korea's high smartphone penetration rates, these platforms offer advertisers an extensive reach to engage with users through innovative ad formats and personalized content.The IOS platform is recognized for its affluent user base, typically yielding higher conversion rates, while Android’s extensive market share enables advertisers to reach a diverse audience.
Additionally, the evolving preferences of consumers for mobile content and app usage present remarkable opportunities for marketers to implement effective strategies. This competitive environment is further accentuated by technological advancements, allowing for improved data analytics and insights that drive informed advertising decisions.
As brands increasingly allocate budgets toward mobile advertising within the South Korea In-App Advertising Market, understanding the unique characteristics and user behavior on both IOS and Android becomes imperative for maximizing ad effectiveness and return on investment.
In-App Advertising Market Application Insights
The Application segment of the South Korea In-App Advertising Market exhibits a robust framework, reflecting the country's technological advancement and high smartphone penetration. As mobile users increasingly engage with various apps, this segment drives significant revenue growth through platforms that provide Online Shopping, Messaging, Entertainment, Gaming, and Ticketing.
Online Shopping has emerged as a noteworthy sector, buoyed by the shifting consumer behavior towards e-commerce, especially post-pandemic. Messaging apps are also gaining traction, leveraging user data to deliver tailored advertisements, thus enhancing user engagement.
In the entertainment landscape, streaming platforms capitalize on in-app advertising to monetize content effectively. Gaming stands out as a crucial area, integrating ads seamlessly into gameplay, which results in high interaction rates from users. The Ticketing sector facilitates the promotion of events, with advertisements aimed at driving attendance and enhancing the user experience.
Alongside these trends, market growth faces challenges such as ad fatigue and privacy concerns, yet opportunities persist through innovative ad formats and enhanced targeting capabilities, indicating a dynamic landscape for stakeholders in the South Korea In-App Advertising Market segmentation.
South Korea In-App Advertising Market Key Players and Competitive Insights
The South Korea In-App Advertising Market is a vibrant and rapidly evolving sector characterized by intense competition and innovative strategies aimed at capturing the attention of mobile users. With the surge in smartphone penetration and the growing popularity of mobile applications, businesses are increasingly recognizing the potential of in-app advertising as a powerful channel for reaching consumers.
This market is marked by diverse players, including both local and global companies, who leverage various advertising formats such as display ads, video ads, and native advertising to engage users effectively.As advertisers seek to optimize their campaigns through data-driven insights and advanced targeting capabilities, the competitive landscape continues to shift, reflecting the dynamic nature of consumer preferences and technological advancements.
Naver stands as a dominant force in the South Korean In-App Advertising Market, leveraging its strong brand recognition and extensive user base. As a leading search engine and internet services provider, Naver has established itself as a key player in digital marketing.
Its strengths lie in its ability to integrate advertising seamlessly within its ecosystem, providing advertisers with unique opportunities to promote their products and services to a highly engaged audience.Naver’s advertising solutions are tailored to meet the specific needs of businesses, allowing for effective targeting and user engagement. Furthermore, its commitment to innovation ensures that it remains at the forefront of the in-app advertising sector, continuously enhancing its offerings and adapting to the evolving market landscape.
LG Uplus, another prominent player in the South Korea In-App Advertising Market, has carved a niche for itself by embracing digital transformation and innovative marketing strategies. The company operates extensively in telecommunications, providing a range of key products and services including mobile content, smart home solutions, and integrated communication services.
LG Uplus has harnessed its technological capabilities to develop effective advertising solutions that resonate with mobile users. Its strengths include a robust infrastructure that supports high-quality ad delivery and data analytics, enabling advertisers to optimize their campaigns for better performance.The company consistently explores partnerships and potential mergers to expand its market presence and enhance its capabilities, positioning itself strategically within the competitive landscape of in-app advertising in South Korea.
Key Companies in the South Korea In-App Advertising Market Include:
South Korea In-App Advertising Market Developments
In July of 2025, Naver made the announcement that it will be integrating its advertising platform with the messaging app that Kakao offers. This would enable advertisers to reach a larger audience through the use of tailored advertisements.An innovative mobile advertising service was introduced by LG Uplus in August 2025. This service enables businesses to target clients based on their location and activity, hence improving the relevancy and efficacy of advertisements.
IronSource launched its Pangle ad network to South Korea in September 2025, which provided developers with additional ways to monetize their apps through the use of targeted adverts within the apps themselves.MoPub announced new mediation tools in South Korea in October 2025. These features enabled developers to improve ad revenue by integrating several ad networks into their apps, which allows them to maximize their revenue.
AI-driven advertising platform was introduced by SK Telecom in November 2025. This platform makes use of user data to deliver individualized advertisements, thereby enhancing both the performance of advertisements and the level of user engagement.
South Korea In-App Advertising Market Segmentation Insights
In-App Advertising Market Type Outlook
In-App Advertising Market Platform Outlook
In-App Advertising Market Application Outlook
| Report Attribute/Metric Source: | Details |
| MARKET SIZE 2023 | 2.7(USD Billion) |
| MARKET SIZE 2024 | 3.5(USD Billion) |
| MARKET SIZE 2035 | 20.0(USD Billion) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 17.17% (2025 - 2035) |
| REPORT COVERAGE | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| BASE YEAR | 2024 |
| MARKET FORECAST PERIOD | 2025 - 2035 |
| HISTORICAL DATA | 2019 - 2024 |
| MARKET FORECAST UNITS | USD Billion |
| KEY COMPANIES PROFILED | Naver, LG Uplus, IronSource, MoPub, SK Telecom, Google, AdColony, Unity Technologies, Apple, Samsung, Chartboost, InMobi, Verizon Media, Kakao, Facebook |
| SEGMENTS COVERED | Type, Platform, Application |
| KEY MARKET OPPORTUNITIES | Mobile gaming growth potential, Increasing smartphone penetration, Rise of programmatic advertising, Demand for personalized content, E-commerce integration in apps |
| KEY MARKET DYNAMICS | rapid mobile usage growth, increasing smartphone penetration, diverse advertising formats, strong demand for engagement analytics, privacy regulations influence strategies |
| COUNTRIES COVERED | South Korea |
Frequently Asked Questions (FAQ):
The South Korea In-App Advertising Market is expected to be valued at 3.5 billion USD in 2024.
By 2035, the South Korea In-App Advertising Market is projected to reach a value of 20.0 billion USD.
The market is expected to exhibit a CAGR of 17.17% from 2025 to 2035.
Native ads are projected to be the highest valued segment at 3.6 billion USD in 2035.
Video ads hold a significant share with a market value of 1.011 billion USD in 2024.
Major players in the market include Naver, LG Uplus, IronSource, MoPub, and SK Telecom among others.
The market growth is driven by increasing mobile usage and advancements in advertising technology.
Challenges include intense competition and maintaining user engagement in a crowded advertising space.
The market growth is fueled by mobile games, social media apps, and e-commerce applications.
Interstitial ads are projected to reach a market value of 3.6 billion USD by 2035, indicating strong performance.
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Team Lead - Research she holds an experience of about 6+ years in market research and business consulting, working under the spectrum of information communication technology, telecommunications and semiconductor domains. aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.
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