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Nike Debuts Generative AI Ads in South Korea with Naver’s HyperCLOVA X

Naver's AI Ad Platform Elevates Nike's Online Customer Engagement and Sales
South Korea
n 035420.KO Blue Chip 150 Tech 350
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Nike Inc. has teamed up with South Korea’s Naver Corp. to launch a groundbreaking advertising campaign using generative artificial intelligence (AI). Utilizing Naver’s large language model, HyperCLOVA X, the campaign is a significant step in Nike’s digital marketing strategy and Naver’s pursuit of innovative growth engines.

The collaboration features a chatbot-style search service on Naver’s website. When customers search for Nike running shoes, the generative AI ad platform offers personalized recommendations, detailing product specifications and designs. This AI-driven approach simulates an in-store brand manager experience, guiding customers from product exploration to purchase assistance, all within a digital space.

Naver reports that this interactive AI service not only enhances user engagement by providing tailored product information but also significantly boosts purchase intentions. During the pilot phase from January 15-19, the AI ad platform achieved a 20% higher click-through rate compared to traditional banner ads. Notably, 30% of users engaging with the AI chat visited Nike’s website for further product exploration.

This initiative by Nike and Naver marks a transformative phase in digital advertising. Naver’s Ha Seon Young, leader of the ad product planning team, highlighted the potential of CLOVA for AD to revolutionize customer-brand interactions, though specifics on ad costs remain undisclosed.

The global trend toward generative AI in advertising is rapidly gaining momentum. Google has already implemented a virtual try-on feature for apparel, and Japan’s Mercari Inc. has integrated generative AI into its e-commerce platform. As the generative AI ad market is expected to surge, this collaboration between Nike and Naver is a significant stride towards a more interactive and responsive digital advertising future.

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