[Drifting Korean-style AI]② To Search AI, Text Input Required... Naver's Accessibility Lower than Big Tech

Naver, Domestic Search Engine Market Share Declines

Naver's market share in the domestic search engine market is steadily shrinking. Although it aimed to strengthen its search capabilities through integration with the large language model (LLM) HyperCLOVA X, the results have not been as expected.

According to web analytics firm Internet Trend on the 19th, as of the 14th of this month, Naver's domestic search engine market share was recorded at 55.11%. This represents a decrease of 6.85 percentage points compared to 61.96% at the beginning of the year. Naver has introduced various features using HyperCLOVA X, but the response has been relatively muted. It offers services such as the search service Cue:, the conversational AI agent service CLOVA X, the advertising and recommendation service CLOVA for Ads, and the AI writing service CLOVA for Writing for creators. Additionally, it has launched services that interpret the intent and context of user-entered search queries using generative AI technology to provide appropriate search results.

Naver's influence in the global search engine market is minimal. According to data from market research firm StatCounter, last month Naver's search market share in the Asia region stood at only 0.78%. Google led with 90.94%, followed by Bing (2.81%), Baidu (1.91%), Yandex (1.38%), and Yahoo (1.08%).

The decline in Naver's market share is largely due to the significant gap with global big tech companies leading in AI. Google's share increased from 28.30% at the start of the year to 36.64%, and Microsoft's (MS) Bing rose from 1.79% to 3.71%.

This difference also appears to be influenced by AI accessibility. Compared to Naver, Google and Bing offer relatively higher accessibility to AI directly from their main homepages. On Google's main page, clicking the Google Apps button at the top right immediately reveals an icon to access the LLM Gemini. Microsoft's Bing search engine provides a button next to the search bar to access OpenAI's GPT-based AI model Copilot.

Furthermore, on PC operating systems (OS) like Windows 11, there is an icon on the far right of the taskbar that allows direct use of Copilot. In contrast, Naver users must enter 'HyperCLOVA X' or the conversational AI agent service 'CLOVA X' in the search bar and then access a separate webpage to use these services. However, by using Cue:, AI search can be performed directly on the homepage, but prior registration is required.

Google, embedded in the Android OS, supports not only conversational forms but also image and search capabilities. Since integrating Copilot, Bing's market share has gradually increased. Similarly, web page and document summarization and analysis services are also available. The competition in the search market is expected to intensify further. OpenAI recently announced and began testing 'SearchGPT,' a generative AI-based search engine.