- Naver says AI can help users provide better search results, shopping experiences and even entertainment across all platforms.
- Naver reported a 23.6% increase in sales in the first quarter, but net profit plunged 71.2% year-on-year.
Naver Corp. website on screen in Gimpo, South Korea, September 9, 2021.
Cho Sung Joon | Bloomberg | Bloomberg | Getty Images
While artificial intelligence chatbots like ChatGPT pose a threat to the search advertising market, South Korean internet giant Naver sees the rise of AI as an opportunity for the company.
According to Statista, Naver is the most used search engine in South Korea with a market share of 61.2% monthly active users. In contrast, the ever ubiquitous Google has his 28.55% market share in the country.
AI-powered chatbots like ChatGPT pose a threat to search engines by answering users’ questions directly, rather than presenting them with a list of web pages they must browse to find an answer. increase.
This can speed up the user’s search process, assuming all the information displayed is correct.
Fewer people using search engines often leads to a decline in search advertising revenue, which is often the largest source of revenue for operators. In 2022, Alphabet generated over 57% of his revenue, or $162 billion, from Google searches alone.
Like Google, Naver also primarily operates a search engine, but it also has other business units such as content platform Naver Webtoon, multimedia mobile application Snow, fintech arm Naver Pay and Naver Shopping e-commerce platform. I have.
Speaking to CNBC’s Chery Kang in South Korea, Kim said AI will be a “huge opportunity” for businesses. [results]whether it [an] Whether it’s fintech, webtoon recommendations, or webtoon illustration tools, it enhances your shopping experience. “
He believes AI will only enhance Naver’s offerings, noting that “AI is not new to us, but it is very important to each of our businesses.”
As for user experience, Kim said that AI-powered Naver means an enhanced search experience, shopping experience, and travel recommendations to users.
He believes Naver is the largest site when it comes to finding travel dates. “So to the extent AI can actually improve that experience, I think it’s a game changer for users.”
Naver revealed in its Q1 earnings call that the company plans to launch a “hyperscale AI” product named HyperCLOVA X this summer. The company says it will “provide users with generative AI-driven search and provide businesses with new and customized services.”
Sales in the first quarter were 2.28 trillion won (1.72 billion won), up 23.6% year-on-year, but net profit was 43.7 billion won, down 71.2% year-on-year. Operating profit was 330.5 billion won, up 9.5% year-on-year.
Naver’s shares traded 1.93% higher on Tuesday and rose 5.56% on Monday after the company released its results in the morning.
