79% of Advertisers Handle Naver Digital Outdoor Advertising Directly… Average Quarterly Spend in the 180,000-won Range
Researchers from Sookmyung Women’s University and Inha University Analyze the Effectiveness of DOOH
41.3% of Advertisers Spend Less Than 50,000 Won Per Quarter
Second-Quarter Ad Retention Rate Exceeds 70%
Following 359,000 Devices, IPTV to Expand to 20 Million Households
[Edaily Reporter Lee So-Hyun ] It has been revealed that approximately 8 out of 10 advertisers using Naver’s (NAVER(035420)) digital out-of-home advertising run their campaigns directly without the assistance of an advertising agency. The average quarterly spending per advertiser was in the 180,000 won range, and more than 70% of businesses that ran ads for one month continued their campaigns the following month.
[This image was created using AI technology.]
Naver announced on the 2nd that it had published the “Naver Digital Out-of-Home Advertising Report,” a joint study conducted by research teams led by Professor Moon Jang-ho of Sookmyung Women’s University and Professor Jeong Hye-seung of Inha University.
Based on transaction and reservation data from advertisers who used Naver’s digital out-of-home advertising in the second quarter of this year, as well as in-depth interviews, the research team analyzed the advertising behavior and effectiveness among small and medium-sized business owners.
Naver Digital Out-of-Home Advertising is a service that allows Place business owners to use “ADVoost Screen,” which delivers location-based ads to digital screens installed in restaurant and café ordering terminals, screen golf kiosks, office lobbies, apartment elevators, and convenience stores.
78.5% of Advertisers Manage Campaigns Directly Without an Agency
The study found that 78.5% of all advertisers were running their campaigns directly, without the assistance of advertising agencies or other intermediaries.
When Naver launched this service last December, it streamlined the traditional outdoor advertising process—including ad creative production and media selection—using artificial intelligence (AI) technology.
Unlike outdoor advertising, which is typically run on a monthly basis, the service also offers weekly advertising options. The businesses using the service are concentrated in local, community-oriented sectors such as hair salons, beauty shops, fitness centers, academies, and pet grooming services.
One advertiser interviewed said, “Even though I didn’t know how to make videos, I had no trouble creating the ad, and it only took 10 minutes to complete.”
Quarterly average of 184,542 won… 41.3% spent less than 50,000 won
Low advertising costs were also identified as a factor driving increased usage among small and medium-sized business owners. The average quarterly spend per advertiser was 184,542 won.
Of all advertisers, 41.3% spent less than 50,000 won during the quarter, and 61.7% had a daily campaign budget of 10,000 won or less.
The owner of a dog grooming business said, “Even with just 50,000 won, we’re consistently attracting new customers, and since it’s not a major financial burden, I use the service every month as if it were a recurring payment.”
Naver’s digital out-of-home advertising charges based on actual ad impressions and allows businesses to start or pause their campaigns at any time.
Over 70% of Advertisers Who Tried the Service Plan to Use It Again Next Month
The rate of advertisers continuing to use the service after running an ad once was also high. Of the advertisers who ran ads in April, 72.6% continued their campaigns in May, and 71.2% of active advertisers in May ran ads in June as well.
The average ad retention rate for the second quarter exceeded 70%. Researchers analyzed that advertisers have begun to use digital out-of-home advertising as a tool to be utilized continuously in their business operations, rather than as a one-time marketing effort.
Since last September, Naver has been providing “Biz Coupons” worth up to 300,000 won to Place business owners for use in digital out-of-home advertising.
Currently, ads can be broadcast through 359,000 digital out-of-home advertising devices nationwide, and starting on the 12th, the platform plans to expand the eligible media to include IPTV, creating an environment capable of exposing ads to approximately 20 million households.
Song Jae-hoon, Naver’s DOOH Business Leader, said, “We will continue to expand our advertising reach, focusing on media closely integrated into daily life, so that small and medium-sized business owners can also run outdoor ads cost-effectively.”
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