[Edaily Reporter Shin Ha-yeon ] The automation of ad operations using artificial intelligence (AI) is leading to improved financial performance for digital advertising companies. Analysts note that by introducing AI for repetitive tasks—such as ad creative production and performance analysis—companies are establishing a structure that reduces labor costs associated with revenue growth and boosts profitability.

According to the financial investment industry on the 13th, #MadUp closed at 6,740 won on the KOSDAQ market the previous day—a 29.87% increase from the previous trading day—hitting the daily price limit. This is interpreted as a result of improved earnings and the announcement of a shareholder return policy stimulating investor sentiment.

Madup’s cumulative revenue for the first three quarters of this year reached 50.3 billion won, a 47.5% increase compared to the same period last year. This figure surpassed last year’s total annual revenue in just nine months. Operating profit for the same period rose 102.4% to 6.5 billion won. The company also decided the previous day to repurchase 2 billion won worth of its own shares and pay a quarterly dividend.

Madup is working to streamline advertising operations by utilizing tools such as the Agent AI marketing agent “LEVER Xpert.” This approach boosts productivity by automating tasks—such as ad creative production and performance analysis—that were previously performed by staff.

Wise birds Inc.(273060), a company in the same industry, also reported improved third-quarter results. Wise birds Inc.’s third-quarter revenue reached 13.5 billion won, a 29.6% increase year-over-year, while operating profit rose 76.0% to 3.7 billion won. Both revenue and operating profit hit all-time highs on a quarterly basis. Cumulative operating profit for the first three quarters totaled 9.5 billion won, surpassing last year’s full-year operating profit of 7.6 billion won.

Wise birds Inc. operates an advertising agency business based on partnerships with major digital advertising platforms such as Meta, Google, and TikTok. Recently, the company has been expanding its AI-powered ad creative production and platform businesses.

Notably, in Wise birds Inc.’s standalone marketing business, revenue grew by 50% while third-quarter advertising volume increased by 11%, and operating profit rose 2.4 times compared to the same period last year. This indicates that revenue and profit grew faster than the volume of advertising handled.

“Ad-Visor,” an AI-based ad creative production solution, automatically generates ad creatives compatible with 86 specifications across 11 media platforms using a single design file. It is designed to improve operational efficiency by reducing repetitive tasks in the ad production process.

The advertising platform business also showed growth. “Nest Ads Manager,” operated by Wise Birds Inc., is a platform that enables app and web operators to run advertising businesses without having to build separate advertising systems. Currently, 16 media outlets, including Daum, Saramin, Blind, and Danawa, have adopted the platform.

Revenue from this platform business in the third quarter increased by 188.2% year-over-year, and it recorded an operating profit for the second consecutive quarter. With platform revenue now complementing the existing advertising agency business, the company’s revenue streams are diversifying.

Analysts in the securities industry note that cost efficiencies resulting from the adoption of AI automation are emerging as a key performance variable in the advertising sector. They explain that while the advertising agency business has traditionally required an expansion of operational staff as the number of advertisers and advertising revenue increased, the automation of repetitive tasks has made it more feasible to scale the business without increasing headcount.

In a report published today, the independent research firm Growth Research analyzed that Wise birds Inc. is demonstrating a high profit growth rate relative to its increase in advertising revenue through AI-driven operational efficiency. In particular, the report highlighted the improved profitability of the marketing business and the advertising platform business’s shift to profitability.

Growth Research noted that Wise Birds Inc. outperforms Madup in terms of advertising revenue, operating profit margin, and media partnerships, adding, “If profit growth continues, there is room for the gap to narrow.” Wise Birds Inc.’s P/E ratio stands at 5.1x, which is about half the median P/E ratio (10.5x) of its domestic digital advertising peers.