LG CNS’ AI-based marketing platform greatly boosts results

The trial application of South Korea's information and communications technology company LG CNS of artificial intelligence (AI) to marketing and advertising has produced eye-catching results, with AI-based solutions greatly raising cost effectiveness.

AI has thus expanded its turf to advertising and marketing, which has traditionally relied on the “touch” of experts such as those in marketing and production.

The company on Monday said it launched in December, 2022, a marketing optimization platform (MOP) based on AI and mathematical optimization. Optimizing the internet and display ads of clients, its MOP has attracted over 100 advertisers, agencies and media labs since its inception.

A golf equipment maker used the MOP to select tens of thousands of golf-related terms consumers search for and decided on the type and cost of ads based on the results. The advertising effect subsequently grew 27% with no rise in cost.

A manufacturer of high-end children's clothing was to found to waste advertising funds on weekends and early morning hours, when management of search ads is difficult. It switched to times when the cost-to-sales ratio is highest and cut such spending 24%.

LG CNS developed its MOP by applying digital transformation technologies such as AI and mathematical optimization. The first step is automatic collection of marketing results data from clients like Naver, Kakao and Google from past to present.

In addition, AI uses mathematical optimization to calculate the number of cases that can occur with given resources and all variables. After setting the budget based on effective exposure location, time zone and frequency, the optimal prices are set and bids automatically submitted.

This strategy undergoes real-time adjustment as the situation changes, monitoring the number of clicks on competitor ads to check for abnormalities and devise a response plan.

"AI solutions work 24 hours a day," an LG CNS source said. "This prevents missing the timing of advertising bids given that meetings and reviews take too much time."

Write to Jin-Won Kim at jin1@hankyung.com