Three groups in the programme provider (PP) industry are launching a joint response to expand the advertising market for small PPs.

The PP council of the Korea Cable TV Broadcasting Association, the Korea Broadcasting Channel Operator Association and the Korea Broadcasting Channel Promotion Association said on Sept. 8 they signed an MOU to revitalise advertising for small PPs.

Under the agreement, the three groups plan to pursue the digital transition of broadcast advertising and develop new advertising models. They also plan to identify joint projects to expand the small PP advertising market and seek improvements to broadcast advertising-related policies and institutions.

They will later decide detailed projects and the division of roles through consultations. They will also operate a working-level consultative body if necessary. They plan to discuss measures to expand small PP participation in the government and public advertising market as well.

According to the association, the average CPM for small PP digital advertising is about 5,000 won per 1,000 impressions. The association said the relative cost burden is lower given that OTT advertising CPM is about 30,000 to 50,000 won.

They also plan to push data-based targeted advertising. The approach analyses mobile usage behaviour to segment ad targets by interests and lifestyle, and enables regional ad delivery at the city and province level and at the city, county and district level.

The agreement runs for 3 years from the signing date. The three groups plan to flesh out joint projects and policy and institutional improvement tasks through further working-level consultations.