NAVER Introduces Generative AI Advertising “CLOVA for AD”
NAVER Introduces Generative AI Advertising “CLOVA for AD”
NAVER Introduces Generative AI Advertising “CLOVA for AD”
- Leveraging HyperCLOVA X, CLOVA for AD links brands’ desired experiences with users’ hyper-personalized experiences
- Searches for specific brands connect to specialized responses via “BrandChat” and “Expandable Bubble,” leading to AI-generated product recommendations
January 24, 2024
NAVER Corporation (CEO Choi Soo-yeon) has initiated testing “CLOVA for AD,” the first generative AI advertising product in Korea.
Presented with the global sports brand Nike, this advertisement is a novel approach aligning brands’ desired experiences with hyper-personalized user experiences, utilizing NAVER’s hyperscale AI, “HyperCLOVA X.”
<Photo 1> Screenshot Showing the Interactive Button for NAVER’s “CLOVA for AD-Nike”, Generative AI Advertisement
<Photos 2 and 3> Screenshots of the “CLOVA for AD-Nike” Advertising Page
Upon searching for a particular brand in the NAVER search bar, users will notice a new button, “Expandable Bubble” situated beneath the brand search or the branding display ad (DA), ready to start the interactive query. Clicking on this button leads to “BrandChat,” a chatbot-style search service. Here, users receive brand-specific responses to their queries, engaging in diverse formats of conversations that may lead to personalized product suggestions and purchases. For instance, a question on the height of a sneaker’s sole would prompt detailed product information and a link to buy the item.
This system expands the off-line shopping experience in an online environment. The hyperscale AI acts as a virtual brand manager, facilitating efficient information acquisition for users and enabling business owners to achieve lower dropout rates and higher purchase rates.
Users often seek detailed product information before making a purchase, and business owners aim to proactively highlight their offerings. Powered by generative AI, BrandChat enriches the user experience through a series of interactive dialogues that emulate real-time consultations, refining the users’ intent and leading to actual purchases.
From a business viewpoint, engaging in interactive dialogues with users enable the brand to provide tailored responses aligned with optimal answers according to the brand’s intentions. Moreover, reliable and stable AI-driven recommendation advertisements will become feasible, as these responses drive from the contents that brands possess and suggests.
“CLOVA for AD” is new type of advertisement that aims to seamlessly integrate the user’s journey from discovery, exploration, and purchase to repurchase, offering a hyper-personalized advertising experience. It is expected to be integrated with various NAVER service entry points including integrated search, search advertising, display advertising, and standalone content. For example, interactive buttons to BrandChat might be included with search ads, or sports brand ads may appear alongside related sports content and display ads.
During the testing period, ads featuring entry points to CLOVA for AD exhibited an approximate 20% increase in Click-Through Rate (CTR) compared to standard ads. Around 30% of users who engaged in product-related discussions through CLOVA for AD proceeded to explore products on the advertiser’s site. Many users also made actual purchases after interacting with BrandChat.
Ha Sun Young, Executive Officer of Advertising Product Planning at NAVER Biz CIC, commented, “CLOVA for AD is set to provide a comprehensive brand experience across NAVER’s diverse usage scenarios, emerging as a new advertising channel for interaction between brands and consumers. We anticipate that generative AI-based advertising to potentially boost revenues for SMEs by yielding various results for different queries.”
