[ad_1]
Naver Corp. is arranged on display in Gimpo, South Korea on September 9, 2021.
Seung Joon Cho | bloomberg | Getty Images
While AI-powered 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.
Naver is the most used search engine in South Korea. According to Statista, commands a market share of 61.2% of monthly active users. In contrast, the ubiquitous Google has 28.55% market share in the country.
AI chatbots such as ChatGPT pose a threat to search engines because they are able to provide answers to users’ questions directly, rather than providing a list of web pages that a user has to browse to find an answer.
This may lead to a faster search process for the user – assuming all information provided is correct.
If fewer people use search engines, it will result in lower search advertising revenue, which is often the biggest source of revenue for its operators. in 2022, Alphabet generates more than 57% of its revenue, or $162 billion, from searches on Google alone.
While Naver, like Google, primarily operates a search engine, it also has other business units, such as its content platform Naver Webtoon and multimedia app Snow, fintech arm Naver Pay and e-commerce platform Naver Shopping.
Speaking to CNBC’s Chery Kang in South Korea, Kim said AI will be a “huge opportunity” for every company’s business, “whether it’s improved search (results), whether it’s an improved shopping experience, whether it’s financial technology or even when it comes to recommendations.” Webtoon, or even Webtoon Illustration Tools.”
He believes that artificial intelligence will only enhance Naver’s offering, noting that “artificial intelligence is not something foreign to us, but it is very important to each of our businesses.”
In terms of user experience, Kim says the AI-powered Naver will mean an improved search and shopping experience as well as travel recommendations for users.
He believes Naver is the biggest go-to site for itinerary searches. “So insofar as AI can actually improve that experience, I think it’s going to be a game-changer for the user.”
In the first quarter earnings presentation, Naver revealed that the company is preparing to launch its “HyperCLOVA X” product this summer, codenamed HyperCLOVA X. The company said it will “provide AI-driven generative search for users and new customized services for businesses.”
During the first quarter, the company’s sales rose 23.6% year-on-year to 2.28 trillion won (1.72 billion won), but its net profit fell 71.2% to 43.7 billion won compared to the same period last year. Operating profit was 330.5 billion won, up 9.5% year-on-year.
Naver shares traded 1.93% higher on Tuesday, building on a 5.56% gain Monday after the company released its results in the morning.
[ad_2]
