Research findings have been released showing that Naver (NAVER) has lowered the high barriers to entry for outdoor advertising faced by SMEs (small and medium-sized enterprises) and small business owners through technologies such as AI. Outdoor advertising has traditionally been difficult because operators must negotiate individually with each company and directly produce dedicated materials that conform to specific media specifications. The minimum required execution costs are also substantial.
Naver announced on the 2nd that it has published the "Naver Digital Outdoor Advertising Report," which empirically demonstrates the utility of its digital outdoor advertising solution for Place business owners. The report is based on research conducted by a team led by Professor Moon Jang-ho of Sookmyung Women's University and Professor Jung Hae-seung of Inha University, in collaboration with Naver. It provides a comprehensive analysis of the effectiveness of the service, grounded in transaction and reservation data from advertisers who utilized digital outdoor advertising in the second quarter of this year, as well as in-depth interviews.
The Naver Digital Outdoor Advertising solution, launched in December last year, simplified the entire process of executing outdoor advertising through AI technology and lowered the threshold for entry by offering weekly options, whereas previous methods were typically conducted only on a monthly basis. This study demonstrated that Naver's digital outdoor advertising actually improved accessibility for small business owners through key product features, including △convenience in direct ad execution via AI, △low costs, and △integration with lifestyle-oriented media.
First, the industries actively utilizing Naver Digital Outdoor Advertising were found to be concentrated in local, lifestyle-oriented sectors such as hair salons, beauty shops, fitness centers, academies, and pet grooming services. The researchers analyzed that a major factor behind small business owners' preference for Naver's digital outdoor advertising is the significant reduction of barriers to use through the application of AI technology and other innovations.
According to the report, 78.5% of all advertisers are executing their ads independently without the assistance of agencies or third parties. One advertiser praised the service, stating, "Even though I didn't know how to make videos, there was no problem creating an ad" and "It takes only 10 minutes to complete." The ability to run outdoor advertising with small amounts under 200,000 won per month was also cited as a strength. The average quarterly execution amount per advertiser was 184,542 won, with 41.3% of advertisers spending less than 50,000 won per quarter and 61.7% having a daily campaign budget of 10,000 won or less.
It is also notable that advertisers who have experienced the effects are beginning to use digital outdoor advertising not as a one-off strategy, but as a constant element in their business operations. For instance, 72.6% of advertisers with ad execution history in April continued their ads in May, resulting in an average ad retention rate exceeding 70% in the second quarter. In addition, advertisers cited satisfaction with the cost structure, which charges only for actual exposure, and the flexibility to start or stop campaigns at any time as key factors.
Since September last year, Naver has been running a promotion supporting Place business owners who utilize digital outdoor advertising with dedicated coupons called "Biz Coupons," usable for ad execution, up to a maximum of 300,000 won. Currently, ad delivery is possible through 359,000 digital outdoor advertising devices. Starting on the 12th of this month, the target media will be expanded to IPTV, adding approximately 20 million households nationwide.
Song Jae-hoon, Naver's DOOH Business Leader, stated, "We plan to continuously expand the reach of our advertising by focusing on lifestyle-oriented media, enabling small and medium-sized business owners to execute outdoor advertising cost-effectively."
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