'Has the Golden Era of SmartStore Ended?' - Naver's Commerce Ecosystem at a Crossroads
Naver is completely pivoting its advertising platform strategy toward a brand-centric approach. Major brands are investing more to adapt to this ecosystem, while small sellers are increasingly being marginalized. Here's why small commerce sellers find themselves struggling to navigate between Naver and Coupang.
❶ Point of View | What Has Changed
Naver's advertising platform is no longer for everyone. Naver is boosting its commerce advertising revenue while simultaneously building a "customized ecosystem" centered around Naver Plus Membership and Brand Stores. In this structure, advertising efficiency is concentrated among major brands, and individual sellers are gradually losing their foothold.
❷ Inside the Move | Current Strategy and Implementation
1. Advertising Revenue is Growing
- As of Q1 2025, Naver's commerce advertising revenue reached 308.3 billion KRW (+16.4% YoY), setting a new record high. Naver attributed this growth to the launch of Naver Plus Store, optimization of advertising spaces, and improvements in recommendation-based advertising.
- However, declining ad efficiency and brand concentration are generating increasing complaints from smaller sellers.
2. 'Vouchers' Directly Connect Membership with Brands
- Pet Voucher: Starting April 28, 2025, Naver began beta operation of its voucher service, which provides customized discounts and points when members register their pet information, available to all membership subscribers at no additional cost.
- Additional Benefits: Partner brand coupons, point accumulation (up to 10%), and additional benefits when using Naver Hyundai Card, including up to 7% points accumulation and 10% immediate discount.
- Partner Brands: A total of 11 brands including 'Royal Canin', 'Hills', and 'Hangoyeonmall' are participating.
3. Personalization + Brand Advertising = Naver's Formula