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Ad spending by tech firms surges 24 pct in first half

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(Globalpost/GlobalPost)

SEOUL, July 11 (Yonhap) -- Advertising spending by information and technology firms surged in the first half of the year, driven by smartphone makers such as Samsung Electronics Co., a report showed on Thursday.

The country's tech firms spent a combined 285 billion won (US$253 million) on advertisements in the January-June period, up 24 percent from 230 billion won a year earlier, according to the report by AC Nielson.

Samsung and its local rivals -- LG Electronics Co. and Pantech Co. -- released their own latest smartphones, such as the Galaxy S4 and the Optimus G Pro in the first half.

The report showed that overall ad spending on newspapers, TVs and magazines reached 2.81 trillion won in the first half, down 3.1 percent from a year earlier, the report showed.

The country's financial sector spent 288 billion won on advertisement in the first half, the biggest amount among other areas, but it was down 13 percent from 332 billion won a year earlier.

The report said the IT sector is relatively less vulnerable to economic cycles, so that their ad spending increased in the first half while most other segments cut back on their advertising spending.

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