Major advertising agencies in the country are accelerating the introduction of artificial intelligence (AI) to enhance work efficiency and competitiveness. They are implementing their own AI solutions to reduce repetitive tasks and focus on creative strategies.
According to the advertising industry on the 26th, Samsung Group's advertising subsidiary Cheil Worldwide, Hyundai Group's advertising subsidiary INNOCEAN, LG Group's advertising subsidiary HS Ad, and Lotte Group's advertising subsidiary Daehong Communications are all incorporating their own artificial intelligence (AI) solutions into advertising operations.
INNOCEAN introduced its self-developed AI solution 'AINN' in April. A typical example is its ability to produce advertising images in various sizes or automatically inspect the internal guidelines of the content.
An INNOCEAN official noted, 'There are many times when we need to quickly produce a large number of content drafts, and by utilizing AINN, we can improve time efficiency as well as reduce unnecessary tasks of aligning with brand guidelines.'
HS Ad commercialized its integrated marketing AI platform DASH AI in August last year. Notably, DASH AI handles everything from marketing strategy to ad production and performance measurement, unlike previous cases in the domestic industry where only fragmented AI functionalities were used.
In April, HS Ad produced a video of the 'LG Gram AI' equipped with AMD Ryzen's AI 300 series processor entirely with AI. The AI-based production method applied a 3D combine workflow, utilizing AI from planning to production.
Cheil Worldwide utilizes Answer Engine Optimization (AEO) when proposing new business to advertisers. Through this, it recommends business proposals tailored to the needs of advertisers.
The introduction of AI by the four major advertising agencies in the country is interpreted as a means of enhancing work efficiency. The advertising industry believes that, since human resources are the key to the industry, having AI take over repetitive and simple tasks allows core talent to focus more on creative idea planning and strategy development. In fact, as of 2024, Cheil Worldwide's labor costs amount to 849.9 billion won, which is 20% of its sales of 4.3442 trillion won and 60% of its selling and administrative expenses of 1.4067 trillion won.
In particular, advertising agencies are leveraging AI not only through open-source solutions but also by introducing their own AI solutions. The advantage of having their own AI solutions is that they are based on internal company systems, which strengthens security, and they can reflect the characteristics of the advertising industry based on the history of existing clients.
To increase the utilization of AI, they are also restructuring their organizations. HS Ad has established a new organization composed of AI experts within the company starting in 2024 and has been hiring dozens of developers. Daehong Communications is also expanding its AI organization by launching an 'AI Studio' organization starting in November 2023. They believe that AI will be a key future resource, prompting them to significantly enhance their organization.