The era has arrived when neighborhood barbershops, restaurants, and corner stores can easily place ads on Naver (NAVER) and Kakao. By simply setting a daily advertising budget, AI automatically creates the ads and identifies the ideal customers. It also adjusts bidding prices in real time to maximize click-through rates.
Naver and Kakao have launched an AI-powered advertising campaign targeting 8 million small businesses. Starting from the 16th, Naver (NAVER) will release 'ADVoost Place' as a beta service. This is an AI-driven advertising management service designed for small business owners and SMEs (small and medium-sized enterprises) who find it difficult to hire professional marketers. Key features include △automatic content generation △automatic bidding △automatic targeting, among others.
First, images and promotional copy used in ads are created based on the images and benefits registered by advertisers in 'Naver Smart Place'. If information on Smart Place changes, the ads are automatically updated accordingly. However, advertisers cannot directly modify the generated images or copy. The created ads will be displayed on PC maps, app maps, the 'Newly Opened' tab, and integrated PC/mobile search results.
Bidding prices are also adjusted in real time by reflecting competitive conditions and ad quality. The billing model is cost-per-click (CPC), and advertisers cannot set individual bid amounts. Targeting parameters such as time, region, gender, age group, and media platform are automatically determined and optimized based on the suitability of the ad placement and users. While advertisers cannot manually configure detailed targeting criteria, they can specify days of the week and time slots. Medical and dental clinics, which require prior approval, are excluded from this service.
Kakao is already operating an 'automatic bidding' feature to improve advertising efficiency. Kakao is also developing 'AI Krew', an AI intelligence system that supports automatic ad content creation and campaign operation and decision-making. A Kakao representative stated, "We plan to expand related functions through AI Krew and other tools in the future."
Both companies have introduced AI features that allow anyone to easily improve advertising efficiency, aiming to expand their advertising business—which has traditionally been dominated by large corporations—to include small businesses. Naver is already operating services such as 'AdBoost Shopping' and 'AdBoost Screen' (outdoor advertising). In July, Naver shopping advertisers saw a 2.5-fold growth compared to the same period last year due to the launch of AdBoost Shopping. AdBoost Shopping is a similar service operated for online stores listed on Naver Shopping, which was launched in beta in May last year.
Kim Hee-cheol, Naver's CFO (Chief Financial Officer), stated during this year's second-quarter earnings announcement conference call that "AI has contributed to more than 60% of the increase in advertising revenue, thanks to efforts in optimizing ad placements and advancing targeting capabilities." Naver's second-quarter advertising revenue reached 1.4472 trillion won, a 7.5% increase compared to the same period last year.
Industry observers believe that Naver aims to establish a 'data virtuous cycle'. The company plans to launch advertising services for small businesses using its accumulated advertising data and then feed the data generated by these users back into AI service improvements. An industry representative noted, "Although overseas AI companies such as OpenAI, Anthropic, and Google currently possess superior technology, this gap is expected to narrow over time. Naver's data accumulated through UGC (user-generated content) and advertising businesses will prove valuable when the time comes."
in TECH
