[Asia Economy Reporter Minwoo Lee] Kakao Pay, which has struggled to escape losses (on a consolidated basis) since its listing, plans to strengthen profitability this year by actively expanding its advertising business. It aims to diversify revenue sources by utilizing various content, including products such as ads within KakaoTalk chat rooms.
On the 7th, Shin Won-geun, CEO of Kakao Pay, stated during the 2022 financial results conference call, "The advertising business will be pursued in four directions: 'Bizboard Display (DA)' ads, in-house DA ads, native ads, and direct advertising of financial products," adding, "Through these activities and past experience, we will ensure that the advertising business contributes to improving Kakao Pay's profitability this year."
Bizboard DA ads have already been partially piloted since September last year. This year, the plan is to increase advertisers and generate results. The second is Kakao Pay's own DA ads. CEO Shin explained, "This strategy involves commercializing DA by linking data assets to areas closely related to Kakao Pay services, such as remittance completion banners and other services," and added, "The pilot operation in December last year received a positive response and has already surpassed Kakao Bizboard's sales."
Regarding the third strategy, native advertising, he was reserved. CEO Shin said, "It is difficult to disclose specifics at this time, but it is a model that utilizes Kakao Pay's unique specialized traffic-building service as an advertising product," and predicted, "It is expected to be a high value-added advertising business, with sales likely to begin in earnest from the second quarter."
Direct advertising products for various financial services are also planned. This method involves allocating advertising spaces for each financial service and commercializing them. Although some are currently in use, the plan is to systematize them further and develop them into a revenue business.
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