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Retrospective Analysis of Nasmedia’s 2024 Digital Marketing Report: H1 Performance and H2 Trend Forecasts

General Report May 18, 2025
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TABLE OF CONTENTS

  1. Summary
  2. H1 2024 Digital Advertising Market Overview
  3. Key Issue Categories in H1 2024
  4. Forecasted H2 2024 Trend Keywords
  5. Conclusion

1. Summary

  • Nasmedia's '2024 H1 Digital Media and Marketing Settlement Report', published in July 2024, presents a comprehensive evaluation of the digital advertising landscape during the first half of the year, which was marked by modest growth amidst challenging economic conditions. The restrained consumer sentiment and sluggish domestic demand were pivotal in shaping the overall market dynamics, indicating a cautious stance among advertisers. Notably, the report identifies three core issues that defined this period: the gradual recovery of the digital advertising market, significant changes in content consumption patterns toward short-form content, and the impact of external factors such as Google's postponement of its third-party cookie phase-out plans. Additionally, it highlights an influx of small to mid-sized advertisers and increased advertising expenditure by Chinese e-commerce platforms, such as AliExpress and Temu, which significantly shifted advertising strategies in South Korea. These trends were accompanied by an acceleration in AI-driven initiatives, further shaping the advertising landscape.

  • In examining H1 2024, the report highlights how consumer sentiment and domestic demand intertwined, influencing the marketing strategies employed by businesses. As advertisers adopted more conservative budgeting practices in response to the weakening consumer psyche, smaller brands recognized opportunities and increased their participation in the market. The report anticipates a potential uplift in consumer spending driven by key seasonal events, which could notably enhance advertising budgets. This interplay underscores a critical transitional phase for marketers as they navigated changing consumer behaviors and economic uncertainties.

  • Furthermore, emerging trends such as the rise of short-form content and innovative advertising models were prominent during H1 2024. The shift toward brief formats offered advertisers new avenues for engagement, emphasizing the importance of visual storytelling. Concurrently, the growing relevance of platform lock-in strategies illustrated advertisers' focus on enhancing user experience through integrated commerce features, ultimately aiming to bolster customer retention. Combined, these factors signal an evolving market landscape wherein adaptability and innovation remain paramount for digital marketers.

2. H1 2024 Digital Advertising Market Overview

  • 2-1. Market Growth Trends in H1 2024

  • The digital advertising market in the first half of 2024 experienced modest growth, driven primarily by a contraction in consumer sentiment and sluggish domestic demand. According to Nasmedia’s report, which analyzed various market dynamics within this timeframe, the growth rate was described as gradual compared to the previous year. The cautious stance adopted by advertisers, characterized by conservative marketing strategies, played a significant role in shaping this growth trajectory. Furthermore, the influx of small to mid-sized advertisers and an increase in advertising expenditure by Chinese e-commerce platforms such as AliExpress and Temu were particularly notable during this period. These factors contributed to the overall market landscape, suggesting a shift in advertiser priorities amidst a challenging economic climate.

  • Significantly, the report highlighted the transformation in content consumption patterns, with users increasingly gravitating towards short-form content. This trend is anticipated to further bolster the short-form advertising market, underlining the adaptation of advertisers to evolving consumer preferences. Major issues that defined the digital advertising landscape in H1 2024 included a reported mild growth in the digital advertising market, postponements in Google's third-party cookie phase-out plans, and a rapid acceleration in AI-driven advertising initiatives. Overall, this combined context paints a picture of a market that, while facing challenges, is also adapting dynamically to new trends and technologies.

  • 2-2. Impact of Consumer Sentiment and Domestic Demand

  • The interplay between consumer sentiment and domestic demand was a critical factor influencing the digital advertising landscape in H1 2024. The report from Nasmedia revealed that a weakening consumer psyche, exacerbated by economic uncertainties, led to conservative budgeting from advertisers. This cautious approach resulted in reduced marketing expenditure from larger brands, creating a ripple effect through the advertising ecosystem, impacting revenues across various digital platforms.

  • As the year progressed, there were expectations for improved consumer sentiment, driven by upcoming summer sports events and the holiday shopping season. These anticipated occasions were predicted to rejuvenate consumer spending, which would, in turn, positively influence advertising budgets as companies aimed to capitalize on heightened consumer engagement. The report emphasized these factors as crucial indicators of how the digital advertising environment might continue to evolve throughout 2024, especially as market players prepared for a potential upswing in ad spending.

3. Key Issue Categories in H1 2024

  • 3-1. Digital Advertising Challenges

  • In the first half of 2024, the digital advertising landscape faced a series of challenges that hindered robust growth. The overall market experienced moderate growth as consumer sentiment remained constrained and domestic demand continued to lag. This environment made advertisers more cautious, leading to a conservative marketing approach. Reports highlighted that while larger companies maintained tight budgets, there was a noticeable influx of small and medium-sized enterprises (SMEs) participating in the advertising space. Furthermore, Chinese e-commerce platforms, particularly Ali and Temu, began to increase their advertising expenditure significantly in South Korea, marking a strategic shift in the competitive dynamics of the market.

  • One of the major hurdles during this period was the postponement of Google's plan to phase out third-party cookies, which has been pivotal for digital advertisers. This delay created uncertainty in targeting strategies, compelling advertisers to rethink their data utilization and privacy compliance strategies. Additionally, the acceleration of AI integration into digital advertising began reshaping workflows, as more advertisers explored automated solutions to enhance their campaigns' effectiveness.

  • 3-2. Surge of Emerging Trends

  • Amid the challenges, H1 2024 saw notable emerging trends within the digital marketing framework. The consumption of content significantly trended towards short-form formats, driven by changing consumer preferences. As users gravitated towards platforms supporting brief content, such as TikTok and Instagram Reels, the short-form advertising market thrived. This shift presented advertisers with new creative avenues and formats tailored to capture and engage audiences within a compressed time frame, emphasizing visual storytelling and authentic user interactions.

  • In addition to the rise of short-form media, significant trends that defined the first half of the year included the evolving advertising models, where platforms such as Tving introduced innovative ad-supported subscription tiers. This new model provided consumers with flexible viewing options while opening further ad inventory for brands. Furthermore, the competitive landscape among streaming services intensified, marked by notable rivalries between platforms like Cheez and AfreecaTV, each looking to capture market share with unique content offerings and advertising strategies.

  • 3-3. Platform Lock-in Strategies

  • The concept of platform lock-in became increasingly relevant during H1 2024, as concerns over customer retention and market share grew among digital advertisers. Companies began focusing on strategies to create more immersive ecosystems, integrating diverse functionalities that encouraged consumers to spend more time within their proprietary platforms. For example, significant steps were taken by social media platforms to enhance their commerce features, transforming the user experience from simple engagement to direct purchase capabilities all within the same interface.

  • As these platforms evolved, the integration of commerce features led to a seamless transition from product discovery to checkout, significantly enhancing the user journey. Acts such as YouTube’s introduction of a dedicated shopping store and TikTok’s preparations for expanding its shopping capabilities underscored this trend, making it evident that platforms aimed to create 'stickiness' that would discourage users from switching to competitors. This strategic shift is indicative of a growing recognition of the need to protect existing user bases while expanding revenue streams amid a rapidly changing digital advertising landscape.

4. Forecasted H2 2024 Trend Keywords

  • 4-1. Commercialization of Multimodal AI

  • As the second half of 2024 approaches, the commercialization of multimodal AI is expected to play a significant role in reshaping digital marketing strategies. Multimodal AI refers to advanced AI systems capable of processing various forms of data, including text, voice, images, and video, thereby facilitating more nuanced and responsive interactions with users. Recent advancements, including the rollout of AI search capabilities by tech giants like Google and Naver, are set to enhance user experience by enabling more intuitive search functionalities. Reports indicate that the market for AI agents, valued at approximately $4.8 billion in 2023, is projected to grow at a staggering annual rate of 43%, reaching around $28.5 billion by 2028. This growth underscores the potential of multimodal AI in transforming consumer engagement and advertising effectiveness, suggesting marketers will need to invest in these technologies to stay competitive.

  • Several notable innovations are anticipated in this space. By the third quarter of 2024, Naver plans to implement its AI search service, 'Q:', on mobile platforms, while Google aims to integrate generative AI, named 'Gemini', in its search services for over a billion users by year-end. Furthermore, the introduction of AI capabilities within mobile devices, such as the Galaxy S24 series by Samsung—marketed as the first AI smartphone—and new iPhones equipped with generative AI functionalities, indicates a broader trend towards embedding AI in consumer technology. Marketers must prepare for the subsequent shift in search behavior, as users will increasingly leverage AI tools for more personalized and efficient interactions.

  • 4-2. Social Media Commerce Integration

  • Social media commerce is forecasted to gain considerable traction in the latter half of 2024, characterized by enhanced shopping functionalities on platforms frequented by millions of users. The integration of commerce features within social media platforms enables a seamless experience from product discovery to purchase, promoting impulsive buying and engagement. YouTube is leading this trend, having launched the country's first dedicated 'YouTube Shopping Store' feature, which allows users to navigate directly to purchase links for products featured in videos, thus significantly improving the shopping experience.

  • Experts predict that revenues from these social media shopping initiatives, particularly through YouTube, could soar, reaching approximately 6.7 trillion KRW by 2028. Platforms such as TikTok are also making strides to establish shopping capabilities, while Instagram focuses on enhancing its marketplace functionalities. These developments suggest a rapidly evolving landscape where social media platforms will redefine how products are marketed and sold, necessitating marketers to adapt strategies for maximizing visibility and conversions within these environments.

  • 4-3. Innovations in Digital Out-Of-Home (DOOH)

  • Innovations in Digital Out-Of-Home (DOOH) advertising are set to reshape the external advertising landscape. The recent amendments to outdoor advertising regulations in South Korea are anticipated to facilitate the emergence of new types of digital ads at prominent urban landmarks. Such innovations include LED cargo truck advertisements, electric bus window displays, and digital ads at subway stations. These advancements reflect an increasing intersection of information and communication technology with advertising.

  • Strategic locations like Myeongdong Tourist Area and Gwanghwamun Square are expected to see significant changes in their advertising landscapes, providing brands with fresh and engaging ways to capture consumer attention. It is critical for marketers to monitor these developments and consider how they can leverage DOOH technologies to engage audiences effectively in both physical and digital realms. As the industry evolves, integrating these innovations into broader marketing strategies will be essential for maintaining a competitive edge.

Conclusion

  • The retrospective analysis provided by Nasmedia’s H1 2024 report reveals a digital advertising ecosystem characterized by cautious optimism as the market experienced moderate growth amidst prevailing economic challenges. Through a structured breakdown of the main issues, including significant digital advertising challenges, emerging trend surges, and the implications of platform lock-in strategies, the report offers vital insights into the complex dynamics at play during this period. As the landscape continues to shift, it is evident that marketers will need to strategically adapt their approaches to leverage evolving technologies and consumer preferences effectively.

  • Looking towards the second half of 2024, Nasmedia's projections regarding the commercialization of multimodal AI, the development of deeper social commerce capabilities, and innovations within the Digital Out-Of-Home (DOOH) advertising sector serve as critical indicators for marketers navigating this changing environment. With the projected growth of AI technologies and social media commerce, as well as the anticipated regulatory advancements in DOOH, marketers are encouraged to prioritize investment in these areas to ensure competitiveness. Furthermore, cultivating a deep understanding of consumer data will enhance advertising effectiveness through AI-driven personalization and direct engagement.

  • In conclusion, as we reflect on the current state and potential trajectory of digital marketing in 2024, practitioners must assess how these forecasts translate into tangible outcomes. By embracing emerging technologies, refining engagement strategies, and actively monitoring consumer behaviors, marketers can position themselves for success in a landscape that is both rapidly evolving and increasingly competitive. The journey ahead will require a commitment to innovation, adaptability, and strategic foresight, ensuring that brands not only capture attention but also foster meaningful connections with their audiences.

Glossary

  • Nasmedia: A key player in the digital advertising space, Nasmedia specializes in providing insights and reports on digital marketing trends and performance metrics. As of May 2025, it is known for its comprehensive analyses of the digital advertising market, including its H1 2024 report emphasizing the interplay between consumer sentiment and marketing strategies.
  • Digital Marketing: The practice of promoting products or services using digital channels to reach consumers. This includes various forms of online advertising such as social media, search engines, email, and websites. In the context of the 2024 report, it highlighted trend shifts and strategies amid economic constraints.
  • Multimodal AI: An advanced form of artificial intelligence that integrates multiple types of data inputs, such as text, audio, and video, to improve user interaction and analytics. The commercialization expected in H2 2024 suggests significant advancements in this field, likely transforming digital marketing strategies.
  • Social Commerce: The integration of e-commerce and social media, allowing users to discover and purchase products directly through social media platforms. This trend is projected to gain momentum in H2 2024 as companies enhance shopping functionalities within these platforms.
  • DOOH (Digital Out-Of-Home): Digital Out-Of-Home advertising refers to digital advertisements displayed in public spaces, such as billboards or transit stations. Innovations in DOOH are expected to reshape advertising strategies by leveraging technology to create engaging consumer experiences.
  • Platform Lock-in: A strategy employed by digital platforms to create a cohesive ecosystem that encourages consumers to remain loyal and engage with a single platform. In 2024, platforms enhanced user experiences through integrated commerce features to strengthen user retention.
  • Consumer Sentiment: An economic indicator that gauges the overall attitude of consumers regarding their expected financial situation, spending, and economic conditions. The report noted that a weakening consumer sentiment in H1 2024 contributed to conservative advertising budgets.
  • H1 2024: Refers to the first half of the year 2024, during which the digital advertising market showed modest growth amid economic challenges. The insights from Nasmedia’s report of this period provide a context for understanding evolving market dynamics.
  • Trend Forecast: A predictive analysis that outlines expected future developments in a particular market or industry. Nasmedia’s report provided forecasts for trends that would shape the remainder of 2024, notably multimodal AI and social commerce.
  • KT Group: A major telecommunications company in South Korea, involved in various sectors including digital marketing and technology solutions. The group's latest initiatives, related to AI and digital advertisements, were highlighted within the broader context of the 2024 digital marketing landscape.
  • Ad-supported Subscription Tiers: A model introduced by platforms where consumers can access content for free or at a reduced cost, with ads included. This approach was noted in the report as part of evolving advertising models during H1 2024.

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