Naver, Daum and Google search ads overview with graphs – digital marketing in Korea (updated)

Korean search engine market share

Want to promote your company in Korea? Worldwide, there are only three countries where the default search engine is not Google. Those are Russia, China and Korea. The search engine (or more appropriately, portal) most used in Korea is called Naver (owned by NHN). Korea’s second largest portal is Daum, which merged with Kakao (known for the mobile messaging application KakaoTalk). Many people use them daily for shopping, to read emails, news, find info about real estate and browse their social networks (Naver or Daum Cafe).

Their search engine results page (SERP) layout is very similar. Even though the SERP of both Naver and Daum change with every keyword, besides ads there often is a lot of User Generated Content (UGC) like (mobile) Blogs, Cafes (similar to Facebook Groups), reviews, Q&A, video, images and shopping results. The mobile SERP is also often different from the SERP on PC.

naver serp

To start a digital marketing campaign, I will give an overview of advertising in both of them. This article consists of three parts:

  1. What are the most used websites / apps in Korea
  2. Background info about Naver and Kakao
  3. A comparison of Naver and Daum pay per click (PPC) online advertising systems

For more info about advertising in Korea / Naver, go to eBook and download the eBook and media kits. Follow the link for Naver SEO.

1. What are the most used search portals / apps in Korea

So, what are the most popular websites in Korea (November / December 2017)? According to three different sources, we get three different results! (Follow the link for an earlier blog post about Korean search portals.)

RankAlexaSimilarwebNielsen Koreanclick (PC)Nielsen Koreanclick (mobile)
1youtube.comnaver.comnaver.comnaver.com
2google.comgoogle.co.krdaum.netdaum.net
3naver.comdaum.nettistory.com11st.co.kr
4google.co.kryoutube.comyoutube.comgoogle.co.kr
5facebook.comgoogle.comgoogle.comgmarket.co.kr

Note: Unlike Alexa, Similarweb does not add statistics from subdomains (like news.naver.com, sports.naver.com, shopping.naver.com etc.) to top-level domain Naver.com. Alexa, Similarweb and Nielsen Koreanclick all make the distinction between google.com and google.co.kr.

Below are the unique visitor numbers from Nielsen Koreaclick, data is from November 2018, in tens of thousands:

Rank

ServiceUnique visitors (desktop)Unique visitors (mobile)

Unique visitors (total)

1

Naver2,8512,285

5,136

2

Google1,2532,115

3,368

3

Daum2,046775

2,821

Note: “Google” traffic is from both google.com and google.co.kr. In a chart, the data looks like this:

korea search engine visitors

Note: the blue part of the column represents the number of unique visitors on PC, while the red part of the column represents the number of unique visitors on mobile. Why this discrepancy between PC and mobile? This may have to do with the fact that Google is the default search engine on many smartphones (and browser Chrome).

Korean search engine market share

According to Nielsen Koreaclick, the three most popular websites in Korea for searching the web are Naver, Daum and Google. Google may have more unique visitors, people spend more time on Daum and it has more pageviews. (The demographic that uses Daum is older.) Naver users do more queries, though, as Koreans see it as a good way to pass time.

2. About Naver and Kakao

“Advertising accounted for 73% of Naver’s total sales” for Q2 in 2017. It saw a “solid gain” in mobile ad revenue. It takes almost 20% of all e-commerce revenue in Korea, thanks to the diversity of its shopping channels and user friendly online payment system (Naver Pay). In Q3 this year growth in overseas sales (mostly by messaging app Line and mobile ads) increased earnings for Naver.

For Kakao, 36.5% of its sales consists of ad revenue (534 billion won, 2016). Mobile games and music content are its fastest growing business units (702 billion won). Kakao also owns one of Korea’s few Internet only banks (Kakao Bank) and a cryptocurrency exchange (Upbit). (Follow the link for a more detailed profile of Kakao.) Both Naver TV and Kakao TV are making efforts to capture market share from YouTube in Korea. Through YouTube, Google gets a lot of ad revenue while Naver leads in PC and mobile ads.

Source: Korea Herald

3. PPC comparison Naver and Daum

There are already many articles about Naver PPC (official name: Search Ad) and the differences between Google AdWords and Naver Search Ad. Therefore, this blog post is about the differences between Naver and Daum PPC. One clear distinction between Google on the one hand and Naver and Daum on the other hand is that Naver and Daum only have exact match type. There is broad (modifier) or phrase match. So you will have to find all exact match long tail keywords to run a successful PPC campaign.

You can use Content ads to promote your Naver Blog. These blog post ads can generate more clicks, have lower CPC and drive more leads than normal text ads. The Naver Blog posts cannot be too commercial, however. They have to be informative and to rank first page in Naver you would have to publish weekly, or more often depending on the competitiveness of the keyword. The Naver Blog algorithm favors accounts that publish regularly. For more info, check out the media kits.

Follow the link for an introduction of Naver Search Ad in English. The categories that I compare Naver and Daum with are: ads, simple settings, advanced settings, features and ad extensions. Images of the ad extensions and examples of brand search are at the end of this blog post.

Ads

NaverDaum
Text adsYesYes
Contextual adsYesYes
Display adsShoppingShopping
Shopping adsYesYes
Special ads (brand search)YesYes
DKI (dynamic keyword insertion)YesYes
HeadlineMax. 15 charactersHeadline + subject max. 60 characters
SubjectMax. 45 charactersHeadline + subject max. 60 characters
View URLUncustomizableUncustomizable
Click URLStandardStandard

Simple settings

NaverDaum
RegionInside Korea, city, province, outside KoreaN/A
Ad schedule by day and hourYesYes
Search network / partners, affiliate websitesYesYes
Desktop weighted valueYesYes
Mobile weighted valueYesYes

Advanced settings

NaverDaum
Webmaster tagsYesYes
Analytics tagsYesYes
TargetWebsite, online store, phone number, locations, Naver Booking, Naver Talk Talk, Contents (Blog, Post, Cafe)Website, Mobile App Tracking (MAT)
Tracking (URL parameter)UTM, auto tracking, referrer tracking, 3rd party, e.g. cidUTM tags
RetargetingN/AYes
Conversion trackingYesYes
ExtensionsYesYes
IP exclusionYesYes

Features

NaverDaum
Keyword analysisSemanticn/a
BrowserInternet ExplorerInternet Explorer
LanguageKorean + EnglishKorean
Submit URL for site reviewYesYes
PaymentKorean bank transferKorean bank transfer, Kakao Pay

Ad extensions

NaverDaum
Phone numberYesYes
LocationYesN/A
BookingYesN/A
CalculatorYesYes
SubtitleYesN/A
Promotional textYesN/A
Sub linkYesYes
Price linkYesN/A
KakaoTalkYesYes

Naver ad extensions

  • Phone number
  • Locations
  • Naver Booking
  • Calculation
  • Subtitle
  • Promotional text
    • 14 characters
  • Sublink
    • 3-4 links
    • 6 characters
  • Price link
    • 1-3 prices
    • 11 characters

Daum ad extensions

Desktop

  • Link to KakaoTalk account:

Mobile

  • Phone
  • Calculator
  • KakaoTalk
  • Sublinks

The most eye-catching feature of advertising in both Naver and Daum is “brand search” (브랜드 검색). Instead of just text, it also shows images. While it gives your brand a lot of legitimacy, there are some requirements to be eligible for brand search. The minimum budget for brand search is 500,000 won, roughly U$D 500.

Naver brand search

Daum brand search

Leave a Reply

Your email address will not be published. Required fields are marked *