Inquivix Insights No.17 – March Issue 2022

March is here, and that means a new Inquivix Insights! This month we’ve got articles on everything from upcoming trends in the design industry to the latest news in technology. We hope you enjoy reading and feel free to share with your friends. Inquivix Insights – March Issue 2022. Enjoy!

1. Google and Naver Join Hands to Promote Content and Pay Platforms

Google and Naver, which had been in dispute over the requirement to pay for in-app purchases, are now collaborating from every angle. At the end of last year, Naver launched a paid service on Google Play Store. Naver Pay has been incorporated as a payment option for in-app purchases on Google Play. Furthering their partnership, Google and Naver Webtoon recently entered an agreement to create games. It will pick five small and medium-sized developers to develop popular webtoons into games. There have been numerous webtoon-based games over the years, but it is the first time Google has directly promoted them.

2. Kakao Talk to Launch “Voice Room” in April

On April 5, according to reports from Korea, “Voice Room,” a new voice service for Kakao Talk’s open chat room, will be released. Users can communicate with each other in the Voice Room freely using voice. It appears to be expanding into the voice platform ecosystem in addition to existing communication methods such as text, pictures, and videos.

3. Amazon Sells Customized Advertisements at Offline Stores

Amazon has revealed that it is testing out digital advertisements in its physical locations. The new signs will reportedly display tailored messages on smart shopping carts and check-out kiosks. Amazon‘s physical stores sell a large number of low-margin items. For these businesses, selling advertising may be a valuable income source.

4. Advertising Boom Is Expected in Spring

According to KOBACO, the advertising economy outlook index, KAI, for March is 107.7, which is higher than the previous month’s prediction of 103.7. Online and terrestrial/cable TV advertising costs are anticipated to rise, and advertising spending is expected to grow in all media. Active new semester and spring season advertising campaigns were mentioned by major advertisers as reasons for the increased expenditure of advertising.

5. Video Streaming Apps Are Leading the App Market

Overall market leaders include video streaming apps that offer over-the-top (OTT) streaming and video-based social networking services. The top 20 video streaming applications saw sales of $7.8 billion last year, an increase of 60% from the previous year. In general, the live video streaming industry has exploded. Last year it saw a 57% increase in worldwide sales amounting to $3.8 billion.

6. KOBACO Invested 5 Billion Won in Public Advertising and Marketing Venture Funds

KOBACO has agreed to collaborate on the establishment of an “Advertising and Marketing Venture Fund” partnering with The Ministry of SMEs and Startups, the Korea Communications Commission (KCC), and Korea Venture Investment (a public institution under the Ministry of SMEs and Startups). Under the terms of the agreement, a fund of KRW25 billion will be established with Korea Venture Investment’s parent fund investing KRW10 billion and Kobaco KRW5 billion. The rest will be combined with private investment. In addition to being a major investor, Kobaco will assist businesses in developing and implementing their own marketing strategies. It promotes investment in small and medium-sized businesses with promising products and technologies but little financial or marketing resources, allowing them to develop sales.

Conclusion

The advertising industry is heating up in South Korea, while Google and Naver joining forces to promote content and pay platforms. Kakao Talk is set to launch Voice Room soon, which will add more competition to the market. SMEs will get help from KOBACO to improve their advertising and marketing skills. In terms of apps, video streaming apps are generating more revenue than any other app type. Keep an eye on these trends as they develop!