[On-the-Ground Report] AI Rivals Clash in Seongsu: Naver and Google Take Different Approaches

Naver: "Broaden Touchpoints with the Entertainment Industry to Grow Its User Base"
Google Faces Slowing Search Ad Growth... New Revenue Streams Urgently Needed

Seongsu, Seoul, is packed with young people in their 20s and 30s. From October 30 to November 1, AI rivals Naver and Google drew attention by showcasing technologies and services targeting younger generations. The two companies, whose event venues were just a one-minute walk apart, set themselves apart with events built around different concepts.

Naver's "Nep Festa," held that day, attracted considerable interest as its first offline event offering Naver Plus Membership members a combined experience of culture, performances, shopping and search. As visitors entered Anderson C Seongsu, a multi-purpose cultural venue in Seongdong-gu, Seoul, they were greeted by Taeki, the mascot of Naver Plus Store, and could quickly enter using Naver's AI-powered facial recognition technology, Face Sign. Members who had registered for Face Sign in advance only had to face the screen; they did not need to take out an ID card or barcode.

A person quickly enters Neop Festa using Naver's AI-based facial recognition technology, Face Sign. Photo by Seo Sojeong.

Nep Festa was laid out so members could experience Naver's diverse services firsthand. As soon as they entered, membership holders could sample desserts from local eateries such as Momos Coffee, Hakhwa Walnut Cookies and Seulji Bakery. Following the route led them to a shopping zone, where they could visit an F&B zone featuring well-known brands and try out products. Simply adding related items to their mobile shopping carts left the large bags they had received as merchandise at the entrance soon filled with gifts.

Cultural performances continued in the main hall. A large lineup of artists, including Kwon Jin-ah, Loco, Lucy, Billlie, Lee Mujin, Hwasa and Crush, actively engaged with the audience and got them excited, making the event feel like an intimate concert. Kim Seul-gi, in her 20s, who attended Nep Festa, smiled as she said, "The ticket cost 49,000 won, so at first I thought it was a little expensive. But I got to enjoy the performances, and the gifts I received were worth nearly 300,000 won, so it was absolutely worth it. I want to come again next time." Lee Jae-hoo, head of Naver's entertainment division, emphasized, "This was our first event, planned to build stronger connections with the entertainment industry and enrich people's experience of Naver's services overall."

Naver Plus Membership users enjoy Crush’s performance at “Neppeseuta.” Photo by Seo Sojeong.

Naver's experiments will continue. Last month, Naver secured the naming rights to Inspire Arena on Yeongjongdo Island in Incheon. For three years, the venue will be called "Naver Arena at Inspire." Building on the experience of Nep Festa, Naver plans to offer Naver Plus Membership members various benefits for performances and sporting events there. 

While Naver's event was a festival designed to stimulate the senses, Google focused on introducing its AI model Gemini in a more subdued atmosphere. At the "Snacky Gemini Campus" pop-up store, created in collaboration with Jeongwaja, a popular YouTube web variety show, visitors could get mobile student IDs, explore booths representing different majors and learn about Gemini's key features through a game in which they completed assignments. However, the exhibition might feel somewhat tedious to visitors who already use Gemini.

A view of the Google event venue in Seongsu-dong, Seoul. Photo by Seo Sojeong.

Naver's efforts to expand its user ecosystem and increase engagement are closely tied to the challenges facing search advertising. Google's stock plunged after the company reported its latest third-quarter results, as growth in search advertising slowed. With advances in AI leading users to search less, Google, which relies on search advertising as a major source of revenue, is facing an "AI paradox" that has hit its business directly. As "zero-click" searches surge, with users asking questions in the search bar, viewing only AI-generated summaries or answers and not clicking links to external websites, Google urgently needs to find new sources of revenue.

Naver's decision to showcase Nep Festa and emphasize cultural experiences ultimately reflects the importance of expanding user engagement through the user experience. The company aims to evolve into a "daily-life platform" that keeps users within the Naver ecosystem and enables them to make purchases, by offering a variety of AI-powered activities, including shopping and culture, alongside traditional search. An industry source said, "The slowdown in search advertising growth due to advances in AI has significant implications," adding, "Naver will pursue a strategy of becoming a key provider of AI infrastructure through its AI Factory while also building a sustainable revenue structure by developing an AI ecosystem."

This content was produced with the assistance of AI translation services.