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Games & Commerce

Naver grapples with pricing in AI investment ahead of monetisation

Naver’s first-quarter revenue rose 16.3 percent from a year earlier, but operating profit grew 7.2 percent as AI infrastructure investment and content procurement costs were incurred first. Its operating margin fell to 16.7 percent from 19.1 percent in the previous quarter. Infrastructure costs rose 32.5 percent and partner and marketing expenses also increased. Naver plans to step up AI advertising monetisation from the second half.

Games & Commerce

Naver to link search and purchases with \'action AI\', profit ramp-up in H2

Naver is making a shift to connect search to transactions a core task this year, focusing on building an uninterrupted flow from search to purchases and reservations around what it calls “action AI”. The company posted first-quarter revenue of 3.24 trillion won and operating profit of 541.8 billion won. It plans to test generative AI ads tied to shopping and local services from the second quarter and begin full monetisation in the third quarter.

AI & Enterprise

Google integrates Veo into Google Ads to auto-generate video ads from 3 photos

Google has integrated its generative video model Veo into Google Ads\' Asset Studio, enabling advertisers to automatically create customised video ads of about 10 seconds using as few as three photos. The tool is expected to be used mainly for YouTube and Demand Gen ads. The move is seen as pushing generative AI deeper into ad production, simplifying creation by mixing images, text and existing assets without specialised editing tools.