Kakao Mobility Wins Olive Young Digital Signage Contract

Kakao Mobility has been selected as the preferred bidder for CJ Olive Young's digital signage business, the Seoul Economic Daily has learned.

The ride-hailing giant plans to combine mobility data analytics capabilities built through its Kakao T taxi service with business-to-business services to create new revenue streams.

According to industry sources on the 24th, Kakao Mobility was named preferred negotiator in CJ Olive Young's recent tender for content management system and media operation rights. SK Broadband and KT, the incumbent operators, also participated in the bidding, sources said.

Once the contract is finalized next month, Kakao Mobility will secure operational rights for digital signage installed across approximately 1,300 CJ Olive Young stores nationwide. Digital signage refers to media platforms that display information and advertisements through screens, including outdoor electronic billboards and in-store display screens.

Kakao Mobility entered the digital out-of-home advertising market in 2022 and has since expanded its presence by operating approximately 40,000 media units, including taxi rear-seat entertainment screens and large-format displays at Seoul Station.

The company's mobility data analytics capabilities, accumulated over a decade of taxi-hailing services, are considered a key competitive advantage. Its ability to analyze customer movement routes and patterns to deliver targeted advertising at optimal locations contributed to winning this contract, according to industry analysis.

The move is seen as part of Kakao Mobility's strategy to diversify its business by leveraging data and IT expertise across sectors including advertising.

According to Market Report World, the global digital signage market is projected to grow from $17.89 billion (approximately 26 trillion won) last year to $32.41 billion (approximately 47 trillion won) by 2034.

A Kakao Mobility spokesperson said, "We will leverage our data assets to become a leader in the next-generation advertising platform market spanning both online and offline channels."