LG CNS recently announced on the 28th that it has signed a memorandum of understanding (MOU) for an 'AI technology-based advertising business partnership' with Naver at its headquarters in Magok, LG Science Park, Seoul.
With this agreement, the two companies decided to collaborate to enhance the advertising efficiency of Naver Shopping sellers by utilizing LG CNS's advertising operation optimization platform, 'MOP (Marketing Optimization Platform).' They plan to optimize algorithms and further develop the advertising operation platform features to improve sellers' advertising performance.
Through this agreement, Naver Shopping sellers can now utilize Naver's AI-based advertising solution 'ADVoost' along with LG CNS's 'MOP.' Automated advertising operations are possible, from selecting advertising materials to targeting settings and performance optimization.
The two companies plan to enable small and medium-sized enterprises that find it difficult to utilize professional advertising agencies and have limited budgets to easily improve advertising effectiveness and lay the groundwork for increased sales by combining their shopping advertising optimization technologies.
MOP is a platform that uses AI and mathematical optimization technology to automatically support advertising operations 24 hours a day and optimize the performance of digital advertisements such as site search ads and shopping search ads. When Naver Shopping sellers input ▲advertising goals (strengthening sales and revenue, optimizing advertising costs, etc.) ▲advertising budgets ▲campaign duration, AI analyzes vast advertising data and automatically recommends the optimal advertising strategies using mathematical optimization technology. Even with the same advertising cost, it can increase consumers' purchase conversion rates.
For example, if a seller offers various fruits such as watermelon, peach, and kiwi, MOP comprehensively analyzes ▲sales volume by time of day ▲advertising locations with high click rates ▲competitors' bid price fluctuations to automatically adjust the budget by reducing the advertising costs during the early morning hours when the sales volume is low and increasing product visibility during the peak sales times. It also extracts key advertising keywords such as 'summer' and 'seasonal food' to maximize advertising performance by real-time consolidation with products that have high sales conversion rates.
Choi Moon-geun, executive director at LG CNS, said, 'Based on LG CNS's unique AX technology capabilities such as AI and mathematical optimization, we will work with Naver to create the optimal advertising ecosystem and continue to discover solutions that provide differentiated value to various advertisers, including small and medium-sized enterprises.'