South Korea. For many mobile game publishers, it’s the promised land – a market renowned for its passionate Korean gamers and significant in-app purchase (IAP) revenue. The Mobile Games market in South Korea is expected to grow to $6.15 billion by 2025, with a compound annual growth rate of 4.60% from 2025 to 2030, reaching $7.70 billion by 2030. By that time, the market is projected to have around 27.7 million users.
But let’s be honest, South Korea is also a brutally competitive landscape. User acquisition costs are high, and standing out in a market dominated by powerhouse titles can feel like an uphill battle. If we’re relying solely on the usual channels, we’re likely missing out on a golden opportunity: Mobile OEM advertising. This approach is proving particularly effective for reaching and engaging Korean gamers.
South Korea’s mobile gaming market is robust, valued at $6.77 billion in 2024, with over $6 billion attributed to in-app purchases. The gamer population is around 24 million, increasing by approximately 800,000 users annually. Role-Playing Games (RPGs) lead the market with a 47% revenue share, followed by Strategy Games and Casual Games.
Android holds the majority market share at roughly 72%. Samsung is quite dominant in Korea, and they are one of the crucial partners of AVOW, though iOS usage is steadily growing. This Android dominance, in particular, opens up a significant avenue for game publishers through Mobile OEM advertising, providing a direct line to millions of Korean gamers.
Cracking the Korean code: OEM ad advantages for Korean gamers
In a market where high Lifetime Value (LTV) users are the goal, OEMs provide a strategic advantage for connecting with Korean gamers:
- Cost-efficient user acquisition: South Korea is a premium market, and traditional channels often come with high CPIs. However, OEM CPIs can be 20-30% lower than traditional channels, making user acquisition significantly more efficient in a premium market. It directly translates to better ROI, especially for games with high LTV users like RPG and strategy titles.
- Higher retention and LTV: Users acquired through OEM channels consistently show higher retention and LTV, with uninstall rates up to 50% lower for preloaded apps. This number suggests a deeper level of engagement and quality from OEM-sourced users, which is crucial for retaining Korean gamers.
- Deep cultural integration and localization: South Korean gamers have distinct preferences. Ad creatives with anime-inspired, detailed visuals and vibrant palettes perform well, avoiding darker tones like black and red in favor of blue, white, and green. Culturally aligned content, referencing Korean holidays (like Seollal and Chuseok) or integrating K-pop culture elements, is more likely to resonate. Localized Hangul text with preferred fonts like Dodum and Nanum Gothic is essential for legibility and aesthetic harmony. OEM stores like Samsung’s “Essential Games Pick” and Galaxy Store features actively support Hangul-rich UIs and localized campaigns, ensuring ads feel native to the Korean language and cultural context.
- Preferred ad formats that resonate: Rewarded video ads are widely accepted and particularly effective for RPG and strategy audiences, encouraging engagement in exchange for in-game currency or bonuses. Mini-games and interactive ads show strong performance across genres, allowing players to simulate gameplay or solve puzzles before installing. Short-form video ads (under 30 seconds), popularized by platforms like TikTok and YouTube Shorts, featuring story arcs or gameplay montages, are highly effective. Narrative-based localized videos that mimic cutscenes also benefit RPG titles. OEMs support these interactive formats during app discovery moments and even through dynamic preloads during new device setup.
The value proposition
The value of OEM advertising in South Korea is clear. While we face high CPIs and ad saturation on major platforms like Meta and Google, OEMs offer lower acquisition costs through underutilized inventory. They provide less competition and native placements on devices and app stores. Crucially, OEM inventory is direct-to-device, ensuring transparency and GDPR/CCPA compliance, which is vital in markets with increasing regulatory scrutiny and, by extension, necessary for global practices.
This direct integration also significantly reduces ad fraud. These factors combine to offer a powerful way to engage with Korean gamers. For game publishers eyeing the South Korean market, diversifying UA strategy to include OEM ads isn’t just an option; it’s a strategic move. It’s about tapping into a highly engaged user base with culturally relevant content through trusted channels.
Conclusion
To truly understand how to leverage these unique advantages and navigate the specifics of the South Korean mobile gaming market, especially when targeting Korean gamers, we strongly recommend exploring the “Ready, Player, Win: The Mobile OEM Advertising Playbook For Gaming Apps.” It provides even deeper insights and practical recommendations that can help us win in this exciting yet challenging market.
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