Performance-Based Display Ads Rejected for Lytten
"Rejected According to Internal Guidelines"
Artificial intelligence (AI) startup Lytten Technologies (Lytten) has been notified by Naver to stop running advertisements.
According to the IT industry on the 6th, Lytten, which operates an AI service platform, received a notice from Naver on the 27th of last month that performance-based display ads could not be run due to being a competing service.
Performance-based display ads are advertisements that can be shown to users who are highly likely to purchase the advertiser's products or services on major screens such as Naver Mobile.
Lytten, which has been using this service since August 2023, requested ad review from Naver again on the 4th, but Naver rejected it for the same reason, stating that ad execution was not possible.
While Lytten is still running Naver search ads, it expressed bewilderment, saying that such ad rejections could expand in the future.
In response, Naver explained that it is true that ad execution was restricted according to internal guidelines, but called it "a kind of happening."
A Naver official said, "We did not reject the ads to check Lytten from the AI business perspective," adding, "It is common for platform companies, including Naver, to prevent competitor services from being exposed in ads."
He continued, "We recognized that the standards were applied somewhat mechanically during the practical review process," and explained, "We plan to communicate the relevant matters to Lytten and ensure there is no inconvenience in ad execution."
An official from the advertising agency industry said, "It is common for large platform companies such as Naver and Kakao to reject competitors' ad materials according to internal guidelines."
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