{"id":22883,"date":"2023-05-09T07:54:12","date_gmt":"2023-05-09T07:54:12","guid":{"rendered":"http:\/\/107237941"},"modified":"2023-05-09T07:54:12","modified_gmt":"2023-05-09T07:54:12","slug":"a-i-could-threaten-search-ad-market-but-south-korean-tech-giant-naver-also-sees-an-opportunity","status":"publish","type":"post","link":"https:\/\/wp.worldtechguide.net\/a-i-could-threaten-search-ad-market-but-south-korean-tech-giant-naver-also-sees-an-opportunity\/","title":{"rendered":"A.I. could threaten search ad market, but South Korean tech giant Naver also sees an opportunity"},"content":{"rendered":"

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The Naver Corp. website arranged on a screen in Gimpo, South Korea on Sept. 9, 2021.<\/p>\n

SeongJoon Cho | Bloomberg | Getty Images<\/p>\n<\/div>\n<\/div>\n<\/div>\n

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While artificial intelligence chatbots like ChatGPT pose a threat to the search ad market, South Korean internet giant Naver sees the rise of AI as an opportunity for the company.<\/p>\n

Naver is South Korea’s most used search engine, according to Statista<\/span>, commanding a 61.2% market share of monthly active users. In contrast, the ever ubiquitous Google has a 28.55% market share in the country.<\/p>\n

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related investing news<\/h2>\n
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11 hours ago<\/p>\n<\/div>\n<\/div>\n<\/div>\n

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AI-powered chatbots like ChatGPT pose a threat to search engines as they are able to provide answers to users’ questions directly, instead of presenting a list of webpages that the user has to browse through to find an answer.<\/p>\n

This could lead to a quicker search process for the user \u2014 assuming all the information presented is correct.<\/p>\n

If fewer people use search engines, that would lead to a decline in search ad revenue, often the largest revenue stream for their operators. In 2022,<\/span> Alphabet generated over 57% of its revenue, or $162 billion, from Google searches alone.<\/p>\n

While Naver, like Google, also primarily operates a search engine, it also has other business units, such as its content platform Naver Webtoon and multimedia mobile application Snow, fintech arm Naver Pay and an e-commerce platform in Naver Shopping.<\/p>\n<\/div>\n

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Speaking to CNBC’s Chery Kang<\/span> in South Korea, Kim says AI will be a “huge opportunity” for each of its businesses, “whether it’s enhanced search [results], whether it’s [an] enhanced shopping experience, whether it’s fintech or even when it comes to Webtoon recommendations, or even Webtoon illustration tools.”<\/p>\n

He believes that AI will only strengthen Naver’s offerings, pointing out that “AI is something that’s not foreign to us, but it’s very important to each of our businesses.”<\/p>\n

In terms of the user experience, Kim says an AI-powered Naver would mean an enhanced search experience, shopping experience as well as travel recommendations for users.<\/p>\n

He believes that Naver is the largest go-to site in terms of travel itinerary searches. “So to the extent that AI can actually better that experience, I think it’s a game changer for the user.”<\/p>\n

In its first-quarter earnings presentation,<\/span> Naver revealed that the company is set to launch its “hyperscale AI” product, named HyperCLOVA X this summer. The company said it would “provide generative AI-driven search for users and new customized services for enterprises.”<\/p>\n

Over the first quarter, the company’s sales rose 23.6% year-on-year to 2.28 trillion won (1.72 billion), but its net profit tumbled 71.2% to 43.7 billion won compared with the same period last year. Operating profit stood at 330.5 billion won, a 9.5% increase year-on-year.<\/p>\n

Shares of Naver were trading 1.93% higher on Tuesday, building on their 5.56% gain Monday after the company released results in the morning.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The Naver Corp. website arranged on a screen in Gimpo, South Korea on Sept. 9, 2021. SeongJoon Cho | Bloomberg | Getty Images While artificial intelligence chatbots like ChatGPT pose a threat to the search ad market, South Korean internet giant Naver sees the rise of AI as an opportunity for the company. Naver is …<\/p>\n","protected":false},"author":1,"featured_media":22884,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[],"hashtags":[],"_links":{"self":[{"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/posts\/22883"}],"collection":[{"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/comments?post=22883"}],"version-history":[{"count":0,"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/posts\/22883\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/media\/22884"}],"wp:attachment":[{"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/media?parent=22883"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/categories?post=22883"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/tags?post=22883"},{"taxonomy":"hashtags","embeddable":true,"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/hashtags?post=22883"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}