Danggeun Market launches professional advertising solution

South Korean startup Danggeun Market, the operator of the country’s largest neighborhood marketplace app Karrot, is ramping up efforts to increase profitability.

Danggeun Market announced on Thursday that it will launch an advertising solution for marketing professionals, such as those working in advertising agencies and companies' marketing departments.

Industry insiders say the move is aimed at resolving market skepticism around the startup’s revenue model. 

The startup is looking to utilize the big data it has compiled over the years for the solution. 

More than 32 million people have signed up for Karrot, an app run by Danggeun Market. The word "danggeun" means carrot in Korean. 

The monthly active user (MAU) count stands at 18 million while the weekly active user (WAU) figure is around 12 million. 

Danggeun is confident the advertising solution will be effective, thanks to its accumulated transaction data on those aged between 26 and 55. 

The solution will analyze and determine exactly where advertisements should be placed depending on store locations and consumer behavior by region. 

While most advertising services can be targeted by cities and provinces, Danggeun’s new solution will be even more detailed to target specific districts within a city or a town. 

Danggeun has been expanding its verticals in recent years to combat its burgeoning operating losses.

The startup’s revenue surged from 3.1 billion won ($2.2 million) in 2019 to 25.7 billion won last year. However, its operating losses jumped by 4.8 times from 7.2 billion won to 35.2 billion won during the same time frame. 

An employee with Danggeun said there is growing demand for targeted marketing by location from various corporations and brands. 

Write to Mi kyung Lee at capital@hankyung.com
Jee Abbey Lee edited this article.