LG CNS, Naver team up to enhance AI-driven ad efficiency

Choi Moon-keun, right, senior vice president of LG CNS' Digital Technology Division, and Han Jae-young, senior vice president of Naver's Ad Sales and Partnership, pose after signing a memorandum of understanding at LG CNS' headquarters in Gangseo District, Seoul, Aug. 5. Courtesy of LG CNS

LG CNS is partnering up with Naver to strengthen artificial intelligence (AI)-powered advertising optimization services for online shopping.

The company announced Thursday that it has signed a memorandum of understanding with Naver to leverage LG CNS’s marketing optimization platform (MOP) to improve advertising efficiency for Naver Shopping sellers.

MOP uses AI and advanced optimization technology to automatically manage digital ads around the clock, helping improve the performance of digital ads such as search and shopping ads.

“Building on LG CNS’s unique AI transformation capabilities, including AI and advanced optimization, we will work with Naver to create the best advertising ecosystem and continue developing solutions that deliver distinct value to a wide range of advertisers, including small and medium-sized businesses,” Choi Moon-keun, senior vice president of LG CNS' Digital Technology Division, said.

Under the agreement, the two plan to refine algorithms and add new features to the platform. Naver Shopping’s sellers can now use both Naver’s AI-based ad solution, ADVoost, and LG CNS’s MOP, enabling fully automated ad management that covers everything from selecting creatives and setting targeting to optimizing performance.

This will help small- and mid-sized businesses that lack the budget to hire professional agencies more easily improve their ad effectiveness and lay the groundwork for higher sales.

MOP is capable of analyzing large amounts of advertising data and automatically recommending the best strategy according to each company's goals, budget and campaign period. This allows sellers to get higher rates of customer purchases without having to spend more money on ads.

For example, for a seller of watermelons, peaches and kiwis, MOP adjusts ad spend in real time, scaling back ad budget during low-sales hours and ramping up exposure during peak times for purchases. The platform will also identify appropriate keywords, such as summer or seasonal fruits, to match products to maximize sales.

Only two years after its launch, MOP has already secured more than 2,000 corporate clients with ad spending through the platform surpassing 300 billion won ($216.2 million). About 100 professional ad agencies have also been using MOP to optimize their clients’ campaigns.

The platform has been delivering measurable results, with one credit card company seeing a 12 percent increase in new card sign-ups online. Another retail company reported a 44 percent jump in ad clicks and a 42 percent boost in sales.