Naver's Advertising Support Program for Small Businesses: A Catalyst for Sustained Revenue Growth and Digital Adoption

Naver's Advertising Support Program for Small Businesses has emerged as a cornerstone of its strategy to drive long-term ad revenue growth and deepen digital adoption among South Korea's SMEs. By combining financial incentives, AI-driven tools, and tailored marketing solutions, Naver has not only bolstered the competitiveness of small businesses but also reinforced its dominance in the digital advertising market.

Financial Incentives and AI-Driven Tools: Fueling SME Growth

Naver's initiatives, such as the Start All-in-One Program, have provided critical financial support to SMEs. Between 2019 and 2023, the program allocated 106 billion KRW in commission fee support and marketing funds, directly aiding early-stage entrepreneurs, according to a Hana Securities report. This support has been instrumental in reducing barriers to entry for small businesses on the Naver Smart Store platform. For instance, the Smart Store Fast Settlement program, which enables 85% of micro and small businesses to receive 100% of their funds the day after transactions, has facilitated 21.5 trillion KRW in advanced payments since its 2020 launch, as noted in the same Hana Securities report. Such liquidity support has allowed SMEs to reinvest in marketing and inventory, creating a virtuous cycle of growth.

Naver's AI-powered advertising ecosystem further amplifies these efforts. In Q1 2025, the company reported a 10.3% year-on-year revenue increase to 2.79 trillion KRW, with its Search Platform and Commerce segments contributing 36% and 28% of total revenue, respectively, according to an Asiae article. The Search Platform's 11.9% growth was driven by AI-optimized ad targeting and improved product efficiency, while the Commerce segment saw a 12% increase, partly attributed to the Naver Plus Store's expansion. These results underscore how AI-driven innovations have enhanced ad effectiveness, benefiting both Naver and its small business clients.

Program Success Stories: Measurable Impact on SME Performance

Naver's targeted programs have delivered tangible outcomes for SMEs. The Brand Launcher and Brand Booster initiatives, for example, have demonstrated remarkable success. In the food and pet sectors, 30 SMEs participating in Brand Launcher saw an average 50% sales increase and 40% rise in orders within two months, as reported in a KoreaPlus-Lifes report. A local flower tea producer even achieved a 250% sales surge during the program. Similarly, the Brand Booster program helped over 100 SMEs double their transaction volumes in six months, with the meal kit brand Sapyung reporting a 290% transaction increase.

For 2025, Naver expanded its focus to global expansion through the Round Up League, an accelerator program connecting Korean brands with venture capital firms and investors, according to the KoreaPlus-Lifes report. The first cohort of 20 brands, spanning K-beauty, plant-based food, and K-fashion, began networking sessions in July 2025, signaling Naver's ambition to position SMEs as global players.

Long-Term Revenue Implications and Digital Adoption Trends

While specific historical SME advertising revenue figures from 2019–2025 are not disclosed, Naver's overall ad revenue trajectory provides indirect evidence of the programs' impact. In 2024, total advertising revenue reached 5.0 trillion KRW, with Hana Securities projecting a rise to 5.475 trillion KRW in 2025, driven by AI-powered platforms like ADvoost. The Search Platform alone generated 1.0647 trillion KRW in Q4 2024, reflecting a 14.7% year-on-year increase, data highlighted in the Hana Securities report. These figures suggest that SMEs, as a significant subset of Naver's advertising base, have contributed meaningfully to this growth.

Digital adoption among SMEs has also accelerated. The Growth Mileage program, launched in July 2025, replaced earlier initiatives like Start Zero Commission and now offers tiered financial incentives and access to AI marketing tools, according to the KoreaPlus-Lifes report. Sellers in the "Sprout" tier receive 300,000 KRW (US$208), while "Power" tier participants get 1 million KRW (US$695), which can be allocated toward advertising, data analytics, or CRM solutions. This shift toward AI-driven support aligns with Naver's broader strategy to digitize SME operations, enhancing their competitiveness in an increasingly online marketplace.

Challenges and Future Outlook

Despite these successes, challenges remain. The absence of granular SME-specific revenue data limits the ability to quantify the exact contribution of small businesses to Naver's ad revenue. Additionally, the sustainability of growth depends on continued AI innovation and SME participation in Naver's ecosystem. However, with Naver's dominance in South Korea's digital landscape-accounting for 58% of monthly active users and 63.23% of paid search traffic, according to an Interad guide to Naver Ads-the company is well-positioned to maintain its leadership.

For investors, Naver's Advertising Support Program represents a strategic win-win: it strengthens the company's ad revenue streams while fostering a resilient ecosystem of SMEs. As AI and e-commerce continue to converge, Naver's ability to adapt its programs to emerging trends will be critical to sustaining long-term growth.