Naver to Expand 'Shopping Search Ads' by 1.5 Times

[Asia Economy Reporter Yoo Hyun-seok] Naver is planning to significantly expand one of its core revenue sources, 'shopping search ads.'

According to the IT industry on the 14th, Naver will conduct a test to increase the number of ads displayed in PC and mobile shopping searches from the current 4-8 to 6-12 starting from the 15th.

Shopping search ads are an advertising product launched by Naver in November 2016. When users search for product names such as galbi (Korean ribs), bicycles, clothing, or furniture, the advertiser's products are displayed before the regular product search results. It uses a 'CPC' (cost-per-click) billing method where advertisers pay based on the number of clicks.

In the first quarter of this year, Naver's business platform segment, which includes shopping search ads, recorded sales of 749.8 billion KRW, a 12% increase compared to the same period last year.

Naver plans to test the expansion of the number of shopping search ads for one week until the 22nd and decide whether to officially apply it. Factors to consider include whether the expansion of ads will reduce search reliability, cause user inconvenience, or decrease advertising effectiveness.

This content was produced with the assistance of AI translation services.