Korean Platforms Race to Launch AI Advertising Agents
South Korean platform companies, including Kakao and NAVER, are expanding artificial intelligence capabilities to manage entire advertising campaigns. These "AI advertising agents" are designed to automate tasks from initial campaign setup and product selection to ongoing performance analysis and budget adjustments, aiming to lower barriers for advertisers and boost efficiency.
South Korean platforms are deploying AI tools to automate the full lifecycle of advertising campaigns, seeking to streamline operations and enhance efficiency. Kakao's "AI Krew," entering a closed beta in December, will allow advertisers to input business goals and budgets in plain language. The agent then recommends suitable messaging, ad products, targeting, and bidding strategies. Post-launch, it can suggest performance improvements and modify campaign settings like daily budgets or landing page URLs, subject to human approval.
Similarly, NAVER has enhanced its "N Ads" advertiser center with AI agent features. This system uses AI to diagnose campaign performance and propose solutions, aiming to assist small business owners in managing ads efficiently without navigating complex settings. Its "custom recommendations" proactively analyze campaign status and suggest improvements, while an "Ads Assistant" helps troubleshoot ad serving issues without requiring customer support.
Beyond these, LINE Plus's "Wannable AI" focuses on marketing content production for Amazon sellers, covering market analysis, strategy, image generation, and ad copy. Evidence of AI-based automation's impact is emerging: Karrot reported its RISE solution helped beauty brand Gahee cut cost per acquisition by 52% compared to other media, and Toss Ads noted one advertiser saw potential customers rise 133.3% within three days after acting on its Insight Tips' budget adjustment recommendations.
This shift toward AI-driven ad automation by major platforms like Kakao and NAVER, alongside Karrot and Toss, represents a strategic effort to reduce the operational burden on advertisers. The companies anticipate this will encourage increased ad spending and, consequently, improve platform profitability by making advertising management more accessible and effective for a wider range of businesses.
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