"Small and midsize program providers expand digital advertising market"...PPs join forces

[Financial News] Program providers (PPs) are joining forces to strengthen the digital advertising competitiveness of small and midsize PPs and expand the advertising market. The plan is to leverage the strengths of small and midsize PP advertising, including precise targeting, to identify new advertising models and expand access to government and public-sector advertising markets.
The PP Council of the Korea Cable TV Broadcasting Association, the Korea Broadcasting Channel Users Association, and the Korea Broadcasting Channel Promotion Association, three organizations in the PP industry, signed an MOU on "Promoting Advertising for Small and Midsize PPs" on the 8th.
The three organizations will pursue joint projects to expand the advertising market for small and midsize PPs and enhance the competitiveness of Korea's pay-TV industry. Key areas of cooperation include the digital transformation of broadcast advertising and the development of new advertising models; identifying joint projects to expand the advertising market for small and midsize PPs; and improving policies and systems to advance the broadcast advertising industry. Specific tasks and the division of responsibilities will be worked out through further discussions. A working-level consultative body may also be established if necessary.
They will promote the competitiveness of small and midsize PP advertising products incorporating digital technology and expand opportunities to participate in government and public-sector advertising markets. Digital advertising by small and midsize PPs is competitive in terms of cost efficiency and precise targeting. The average cost per 1,000 impressions (CPM) is about 5,000 won, compared with 30,000 to 50,000 won for over-the-top media services (OTT), meaning advertising costs can be reduced by more than 75%, they explained.
Customized advertising can also be offered in partnership with data providers. Based on mobile usage data, advertisers can precisely target users according to interests, lifestyles, personas, and other brand objectives. Advertisements can also be delivered by region, from cities and provinces down to cities, counties, and districts.
An official from the PP industry said, "The three organizations will work closely together to actively promote the competitiveness of advertising products offered by small and midsize PPs and strive to turn those efforts into tangible business results."
[email protected] Choi Hye-rim Reporter