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Nasmedia’s 2024 Mid-Year Digital Marketing Report: H1 Performance and H2 Trend Forecasts

General Report May 20, 2025
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TABLE OF CONTENTS

  1. Summary
  2. Release of Nasmedia’s 2024 Mid-Year Report
  3. H1 2024 Digital Advertising Market Performance
  4. Forecasted Trends for H2 2024
  5. Conclusion

1. Summary

  • As of May 20, 2025, Nasmedia's publication of the '2024 Mid-Year Digital Media and Marketing Report' in July 2024 serves as a critical reference for understanding the digital marketing landscape during a period marked by economic challenges. The report comprehensively addressed ten major issues identified in the first half of the year, revealing that the digital advertising market experienced moderate year-on-year growth despite underlying subdued consumer sentiment and a contraction in domestic demand. Notable trends emerged, including a transition towards more conservative marketing strategies by advertisers due to economic uncertainties, yet e-commerce platforms notably ramped up advertising efforts, leveraging the shift in consumer behavior towards digital mediums. The release encapsulated essential themes such as the ongoing integration of artificial intelligence in marketing strategies and the postponement of pivotal digital advertising operations, such as the phase-out of third-party cookies by Google, which served to shape the marketing environment during this critical period.

  • Looking ahead to the latter half of 2024, Nasmedia explicitly identified three transformative trends poised to redefine the marketplace: the commercialization of multimodal AI, the rise of social commerce, and innovations in Digital Out-Of-Home (DOOH) advertising. These trends not only reflect significant opportunities for stakeholders but also underscore the necessity for businesses to adapt to the evolving digital landscape. The insights presented in the report provide a foundational understanding of how technological advancements and consumer behavior trends intertwine, driving the need for marketers to implement agile strategies that capitalize on emerging platforms and tools within their advertising ecosystems.

2. Release of Nasmedia’s 2024 Mid-Year Report

  • 2-1. Report announcement and publisher details

  • In July 2024, KT Group’s digital marketing entity, Nasmedia, published its 2024 Mid-Year Digital Media and Marketing Report. This report comprehensively reviewed ten significant issues from the first half of the year, categorizing them into areas concerning digital advertising, emerging trends, and platform lock-in strategies. The aim of the report was to illuminate the current landscape and provide a forecast for the digital marketing sector for the second half of 2024.

  • 2-2. Scope: ten major H1 issues and three forecasting areas

  • The report identified ten major issues that characterized the digital marketing environment in H1 2024. Among these, the gradual growth of the digital advertising market, influenced by a general contraction in consumer sentiment and sluggish domestic demand, stood out as a defining feature. Notably, it was recorded that the market demonstrated moderate year-on-year growth despite pressure on marketing budgets from advertisers, who maintained a conservative approach amid economic uncertainties.

  • Key highlights from the ten issues included the postponement of Google's third-party cookie phase-out, an acceleration in the shift toward AI in digital advertising, the introduction of ad-supported subscription models by local streaming services, and the escalation of competition in the C-commerce sector. These factors collectively shaped the marketing strategies of various enterprises within the industry.

  • 2-3. Methodology: categorization into digital ad issues, emerging trends, platform lock-in strategies

  • The categorization methodology adopted in Nasmedia's report allowed for a structured analysis of the challenges and trends encountered within the digital marketing sphere. Digital advertising issues addressed systemic shifts, such as the repercussions of diminishing third-party cookies and the emergence of new market players within the streaming and e-commerce segments.

  • Emerging trends were identified with a forward-looking perspective towards H2 2024, focusing particularly on advancements in multimodal AI technologies, the rise of commerce functionalities on social media platforms, and the innovations in Digital Out-Of-Home (DOOH) advertising. The report anticipated that these trends would not only guide advertising strategies but also enhance consumer engagement across various channels.

3. H1 2024 Digital Advertising Market Performance

  • 3-1. Moderate year-on-year growth amid consumer sentiment contraction

  • In the first half of 2024, the digital advertising market experienced moderate year-on-year growth despite challenging economic conditions characterized by suppressed consumer sentiment and a decrease in domestic demand. Growth indicators suggest that while the overall economic sentiment remained cautious, brands managed to adapt their strategies, leading to an incremental rise in digital ad spending compared to the previous year. Various segments, particularly among small to medium-sized advertisers, showed an inclination towards digital platforms, indicating a shift in marketing strategies to address changing consumer behaviors.

  • 3-2. Impact of domestic demand slowdown

  • The sluggishness in domestic demand influenced marketing budgets significantly during the first half of 2024. While traditional advertisers practiced caution, there was a notable increase in advertising from e-commerce platforms, particularly those from China, such as AliExpress and Temu, who expanded their operations in the region. This influx not only diversified the advertising landscape but also intensified competition among businesses vying for consumer attention. It is expected that improvements in consumer confidence and the strategic allocation of marketing resources might bolster digital ad spend as the year progresses.

  • 3-3. Overview of ten key issues across three thematic areas

  • The report published by Nasmedia identified ten significant issues concerning the H1 2024 digital advertising landscape, categorized into three thematic areas: digital advertising issues, emerging trends, and platform lock-in strategies. These include the gradual growth of the digital advertising market, the postponement of Google's third-party cookie support cessation, and the acceleration of AI's integration into digital advertising. Rising competition among OTT platforms, enhanced consumer engagement through short-form content, and the increased significance of DOOH strategies were among the trends outlined. These factors set the stage for a dynamic advertising environment, revealing both challenges and opportunities amidst prevailing market constraints.

4. Forecasted Trends for H2 2024

  • 4-1. Commercialization of multimodal AI models

  • As outlined in Nasmedia's 2024 mid-year report, the commercialization of multimodal AI models is expected to play a critical role in transforming digital marketing strategies in the latter half of 2024. These models, which integrate various data forms such as text, audio, and visual inputs, are anticipated to enhance user interaction by enabling more sophisticated AI services. Following the announcements of OpenAI's GPT-4o and Google's Project Astra in May 2024, the use of conversational AI agents is projected to become mainstream. Market research firm MarketsandMarkets projected that the AI agent market, which was valued at $4.8 billion in 2023, could expand at an annual growth rate of 43%, reaching approximately $28.5 billion by 2028. This rapid growth underscores the importance of adopting advanced AI capabilities as a strategic advantage in digital marketing.

  • Moreover, the adoption of AI search functionalities by major players like Google and Naver is expected to redefine user search behaviors. Naver is set to implement its AI search service, named 'Q:', on mobile platforms in the third quarter of 2024, while Google plans to roll out its Generative AI-driven search service, Gemini, to over a billion users by year-end. These developments suggest a significant shift towards AI-driven personalization in search and marketing initiatives.

  • 4-2. Expansion of social commerce on major platforms

  • Social commerce is poised for substantial growth in H2 2024. The integration of shopping functionalities into social media platforms allows for a seamless transition from product discovery to purchasing within the same environment. This trend has been accelerated by YouTube's introduction of its dedicated shopping store feature in June 2024, which enables viewers to click on tagged products within videos, significantly enhancing user convenience. With the influence of high-profile influencers and creators who possess millions of subscribers, the potential for revenue generation through these platforms is considerable. It is estimated that revenue from YouTube's shopping store could reach up to 6.7 trillion won (approximately $5.8 billion) in South Korea by 2028.

  • In addition, TikTok has laid the groundwork for its entry into the South Korean market with trademark registrations for TikTok Shop, indicating aggressive expansion efforts. Instagram has also updated its commerce functionalities through enhanced social commerce features, further demonstrating the emphasis on the e-commerce integration within social platforms. As social media continues to evolve into a key sales channel, marketers are encouraged to adopt innovative strategies to leverage these platforms effectively.

  • 4-3. Integration and innovation in DOOH (Digital Out-Of-Home) advertising

  • The integration of information and communication technology (ICT) into Digital Out-Of-Home (DOOH) advertising is another noteworthy trend for H2 2024. The recent amendments to outdoor advertising regulations are expected to usher in a new wave of innovative digital advertisements across urban landscapes. Notable installations, such as LED cargo truck advertising, electric bus displays, and digital station signage, are anticipated to enhance the consumer experience and engagement with advertisements in public spaces.

  • Major urban areas such as Myeongdong in Seoul and Haeundae in Busan are expected to undergo transformations as these innovative advertising formats become more prevalent. This strategic shift aligns with marketers' increasing focus on creating immersive and interactive advertising experiences, ultimately driving engagement and brand awareness. As brands explore creative partnerships and technology-driven initiatives within DOOH, the potential for leveraging real-time data and audience insights will likely redefine success metrics in outdoor advertising.

Conclusion

  • The insights drawn from Nasmedia’s 2024 mid-year report provide a structured perspective on the resilience and evolving landscape of digital marketing amidst challenging market conditions. By May 2025, the themes outlined in the report—including the continued growth in digital ad spending, despite economic headwinds, and the anticipated advancements in multimodal AI, social commerce, and DOOH technologies—indicate a significant progression in the digital advertising sphere. The resilience shown in the marketing spending during H1 2024 serves to highlight not only a recovery trajectory but also a strategic pivot by marketers to prioritize efficiency and innovative engagement strategies.

  • As multimodal AI solutions advance and become integral to marketing strategies, stakeholders are urged to remain vigilant in monitoring these developments. The embedding of social commerce features into major platforms and the burgeoning potential of DOOH advertising are set to redefine how brands engage with consumers. As companies navigate these transformative areas, the alignment of media strategies with AI-driven personalization and cross-channel commerce integrations will be vital to achieving a competitive edge going forward. Thus, looking into the foreseeable future, businesses that successfully harness these emerging trends will likely benefit from enhanced consumer engagement and optimized advertising performance in an increasingly digital-focused marketplace.

Glossary

  • Nasmedia: KT Group's digital marketing arm, which published the '2024 Mid-Year Digital Media and Marketing Report' in July 2024. As of May 2025, Nasmedia continues to impact the digital marketing landscape through various insights and forecasting trends in advertising.
  • KT Group: A South Korean telecommunications conglomerate that owns Nasmedia. As of May 2025, KT Group remains a key player in the digital marketing sector in South Korea, influencing marketing strategies and investments across the industry.
  • Digital Marketing: A field that encompasses all marketing efforts using electronic devices or the internet. As of May 2025, it continues to evolve with innovations like AI and social commerce, shaping how brands interact with consumers online.
  • Digital Advertising: A form of advertising that uses digital channels to reach consumers. While it experienced moderate growth in H1 2024, ongoing adaptations are crucial as brands respond to economic conditions and consumer behavior shifts leading into H2 2024.
  • Multimodal AI: Artificial intelligence that integrates multiple types of data inputs (such as text, audio, and visuals) to enhance user interaction and marketing strategies. Its commercialization is expected to reshape digital marketing approaches significantly in the latter half of 2024.
  • Social Commerce: The use of social media platforms to facilitate online sales and shopping experiences. The trend is set to accelerate in H2 2024, driven by innovations in features that allow product discovery and purchasing within social platforms like YouTube and TikTok.
  • DOOH (Digital Out-Of-Home): Digital advertising displayed in public spaces, including billboards and signs. Innovations and the integration of technology in DOOH advertising are expected to enhance consumer engagement as this market expands in H2 2024.
  • H1 2024: Referring to the first half of the year 2024, during which the digital advertising market saw moderate growth despite economic uncertainties and challenges related to consumer sentiment.
  • H2 2024: Referring to the second half of the year 2024, which is expected to witness significant trends such as the commercialization of multimodal AI, growth in social commerce, and innovations in DOOH advertising.
  • E-commerce: The buying and selling of goods or services using the internet. E-commerce platforms have increasingly ramped up advertising efforts to capture shifting consumer behaviors towards online shopping as observed during 2024.
  • Third-party Cookies: Cookies placed by websites other than the one currently visited, used for tracking users across the web. The postponement of their phase-out by Google was a critical issue highlighted in the H1 2024 digital marketing report and continues to influence advertising strategies.

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