Inquivix Insights No.27 – March Issue 2022

Welcome to Inquivix Insights. In this issue, we take a look at some of the latest trends in marketing and advertising and how they are shaping the future of South Korean businesses. We also explore some of the challenges that businesses are facing and how they are trying to overcome them. We hope you find this issue informative and interesting. Thank you for reading!

Instagram ‘Product Tag’ Extends to Regular Users

Instagram will extend the product tag function in photographs. The function will be expanded to all users in the United States step by step. Promotional posts, such as sponsored content, were the most common usage of product tags by the creators. Going forward, product tag functions will be available even for content that does not promote specific products. 

The Sudden Interruption of Apple and Naver Services

On March 22, Naver and Apple’s various services were suspended temporarily. For about an hour and 20 minutes, Naver Smart Store was inaccessible, causing Naver Shopping’s purchase processing to halt. On the same day, some of Apple’s services were suspended, including the App Store and iCloud Apple Music, which were recovered two or three hours later. A Naver official denied the suspicion of hacking, stating, “It is not a service interruption due to hacking.” 

Innocean and Cheil Worldwide, the Next Battleground Is “Virtual Reality.” 

Innocean and Cheil Worldwide, two of Korea’s most prominent ad agencies, have recently been acquired by digital companies. They’ve already snapped up virtual reality and augmented reality digital firms, and they’re getting into NFTs and Metaverse with both barrels blazing. According to experts, digitization is being taken as an opportunity to break away from the old marketing strategy that entirely relied on advertisers.

Reward Ads That Give You 10 Won If You Click on It.

Insurance companies’ marketing efforts are moving towards a reward-based system that actively encourages customers to join. Insurance firms, by themselves or in combination with other businesses, accounted for more than 50% of Naver’s “Premium Package,” which gives points in units of 10 won when clicked. As a result, the impact of customer growth is significant. It was found to be approximately 2 to 6 times greater than banner ads on average.

Food Services Build Their Own Delivery Apps to Deal with High Delivery Fees.

The restaurant industry is paying more attention to getting orders via its mobile app and providing delivery services. Using its own app can retain loyal customers in the long run while also saving delivery expenses. Chicken restaurants, which have a high delivery rate, are particularly interested in using their apps’ orders.

Ad Tech Reward Company ‘Avati’ Is Acquired by Buzzville 

Buzzville, an AI-based advertising platform, has acquired Avati, a digital ad technology firm. Avati is an ad-tech firm that uses a reward system to offer a cash button that gives quick assistance from point accumulation to activation and a cash roulette service in the form of a point charging station. As a result of the acquisition, Buzzville aims to diversify its app developer’s profit models through reward advertising.

eCommerce Companies Accelerate Their Evolution into Tech Companies

Recently, many e-commerce firms have begun looking for chief technology officers (CTO), as several businesses compete fiercely in the field, including coupang. Other e-commerce firms are also accelerating their IT and automation technology investments, as Coupang, which has received good user experience ratings and has aggressively invested in tech capabilities from the start, serves as proof.

Conclusion

In the world of eCommerce, it is important to stay ahead of the curve and adopt new technologies as they become available. This means that businesses need to be willing to change their strategies in order to keep up with the competition. The industry has seen a large shift towards online sales in recent years, and this trend is only going to continue. If you’re not on board yet, now is the time to start making changes so that your business can stay competitive in the ever-changing eCommerce landscape.