Corporate sponsors dying to hire BTS
K-pop boy band BTS promotes KB Kookmin Bank's mobile banking platform Liiv in this promotional image. / Courtesy of KB Kookmin Bank
By Nam Hyun-woo
The rising popularity of boy band BTS is also raising their value for TV commercials and other ads, and sees advertisers rushing to hire the K-pop sensations to endorse their products.
After garnering global successs with previous releases, BTS are currently rocking the globe with their “Love Yourself: Tear” album, topping the Billboard 200 album chart soon after its May 18 release.
According to ad agency officials, BTS reportedly previously received 900 million won ($842,000) to 1 billion won per year through advertising contracts; but the band's value is now beyond appraisal, at least 1.5 times higher than that of last year.
“They are like the most wanted model or endorser not only in Korea but also many other countries,” said an ad firm official, asking not be named. “But the problem is their guaranteed payment. With their awareness at their highest level now, it is beyond imagination how much they will receive for a contract and the price will be totally up to them.”
Another industry official also said it is not easy to predict how much BTS will receive for a new contract, as guarantees differ depending on what product or company it is promoting. However, it is clear BTS is the No. 1 for advertisers.
“The obstacle is price. Not many firms would be able to afford their fixed payment, but if the product is a good fit for the image of BTS, who will oppose hiring the band if they can afford to?” he said.
Currently, BTS has contracts with seven domestic advertisers -- KB Kookmin Bank, LG Electronics' G7 smartphone, Coca-Cola, Puma, Smart School Uniform, Lotte Duty Free and VT Cosmetics.
Of them, KB Kookmin Bank said they are enjoying the “BTS effect” especially in terms of the bank's global awareness.
“Our YouTube video is almost at 8 million views and there are a lot of replies, assumed to be written by foreign BTS fans, asking 'What is KB?' and others answering it is a Korean bank,” a bank official said. “Though we cannot quantify the BTS effect, the commercial is raising awareness of the bank in the global market,” adding KB had started distributing a number of BTS poster to its branches, but soon ran out of copies.
“For KB Kookmin, the hiring of BTS was a good choice, because one of the most important tasks in its global expansion is raising awareness,” a separate banking industry official said.
KB Kookmin plans to release installment savings and debit card products carrying images of BTS as early as this month.
Ad agents said, however, money would not be the sole problem in hiring BTS, because the band is too busy to make time for shooting ads and dealing with other promotional events.
“As far as I know, BTS is now one of the busiest vocal groups in the world,” the ad firm official said. “When they sign a contract, shooting an ad is not their only duty. They have to attend various promotional events such as signing event, and they reportedly don't have enough time to deal with all of these.”