[Edaily Reporter Lee So-Hyun ] Kakao(035720)is leveraging artificial intelligence (AI) to tap into a new, previously untapped advertising market. The approach involves recommending appropriate products and services based on the intent and context of users’ conversations with AI within KakaoTalk, even without users actively searching for products themselves. The company plans to build an AI advertising ecosystem that benefits both users and advertisers by providing advertisers with dedicated agents supported by AI, which assist with everything from ad selection and setup to operation and performance analysis.

Jeong Shin-ah, CEO of Kakao, stated during the third-quarter earnings call on the 5th, “As AI services spread within KakaoTalk, we expect new monetization opportunities for the advertising business to expand significantly.”

Kakao is focusing on user touchpoints that differ from traditional search ads. While search ads require users to directly enter specific keywords to reveal their purchase intent, AI can understand user intent and context through conversation.

CEO Jeong said, “Unlike the conventional model of search advertising, AI services can identify user intent without requiring direct search behavior and recommend necessary products or services at the right moment,” adding, “We expect this to create new advertising demand similar to search advertising, which Kakao has not previously had.”

As Agent AI services and agents—such as KanaNa Space—increase on KakaoTalk, the company anticipates that touchpoints for exploring and receiving recommendations for products and services will naturally expand. The plan is to leverage this into new ad inventory and revenue opportunities.

To this end, the company will also establish a “shared memory infrastructure” by the first quarter of 2027, enabling AI to understand and utilize user behavior, preferences, and experiences. The goal is to move beyond the traditional approach of relying solely on click or purchase history to implement ad recommendations that comprehensively reflect users’ interests, preferences, and purchase intent.

The company will also launch an AI agent for advertisers. Kakao plans to begin a closed beta test of “AI Crew” this December to support ad execution and management.

AI Crew is a service where advertisers enter their business goals into a conversational interface, and the AI then suggests suitable ad products and operational strategies. It supports the entire process, from ad setup to post-campaign performance analysis. By lowering the barrier to entry for small and medium-sized advertisers with limited ad management experience and improving operational efficiency for existing advertisers, the company aims to simultaneously attract new advertisers and increase ad spend.

CEO Jeong stated, “Starting next year, we will move beyond our existing growth model—which focused on expanding ad inventory—and demonstrate how AI-driven improvements in ad efficiency and new monetization opportunities translate into tangible revenue growth.”

Kakao’s advertising business is already showing signs of growth. In the third quarter, TalkBiz’s advertising and subscription revenue reached 391.5 billion won, an 11% increase compared to the same period last year. In particular, revenue from Talk Display ads rose by 35%, driven by an influx of new advertisers and product diversification. Kakao forecasts that Talk Display ads and Business Messages will continue to see double-digit growth in the fourth quarter as well.