The restructuring of the search market indicates that digital marketing fundamentally requires a reorganization. WPP is a major marketing agency globally, and it has predicted that AI will fundamentally change the landscape. At that time, many people talked about changing the game related to content creation, but what is even more important is that AI is already entering the performance marketing stage. This represents a true form of AI agents. Now that agents are extending into search services, it becomes crucial for us to determine how we will respond to this. Thus, the paradigm of marketing is shifting. We need to understand how this transition is occurring and how we should respond to it. If marketers come to a specific compass, in my view...

The event is not a big deal. How is marketing changing in the age of AI? Initially, I heard this from a certain company. At first, people thought that generative AI would create our advertising materials. That's right, right? Even cows are being generated, and although it's not publicly available yet, videos can also be made. So, representatives from brands in companies wanted to feel proud and said, We also made an AI advertisement. As a result, many marketing agencies were requested to create advertisements using AI. Many people mentioned that AI would now handle copywriting, change images, and create visual content. They said that marketing in the age of generative AI would significantly impact production-related aspects. However, I believe this is just the first stage of AI's influence. We have already entered the second stage.

The first step was to use generative AI to create advertising materials. There are already services available on various platforms related to this. For instance, Meta, which owns Instagram and Facebook, offers Advantage Plus Creative, which generates a variety of advertising materials when you provide images. Recently, a smartphone case brand called Casetify has made extensive use of this feature. When you upload static images, it converts them into reels, essentially creating video ads. Utilizing Meta's Advantage Plus Creative, you can generate appropriate advertisements that drive clicks and conversion rates. The most important aspect is determining which users to target. Those who excel in performance marketing often conduct A/B testing to identify the right customer segments.

I think it would be good to expose it, but we are still in the early stages. In the case of Meta, they have created a service called Advantage Plus Campaign, which provides performance marketing for free under the condition of advertising. Google, on the other hand, has introduced a product called Performance Max, which also supports performance marketing. So, if a performance marketing expert like me does it, I can definitely target effectively and acquire many more customers with the same amount of money spent. Those who had pride in their work may have many conflicts here, right? There can certainly be conflicts. Of course, human wisdom and strategy are still needed in performance marketing, but I absolutely do not think that performance marketing will disappear.

I don't think the market will shrink. However, performance marketing has reached its peak. This is because AI excels at it. Since we are still in the early stages of AI, the responses in performance marketing may not yet meet satisfactory levels. However, as AI advances, from Meta's perspective, they will know their users better than anyone else. Meta is providing AI support for performance marketing, TikTok is doing the same, and Google is also responding on its own. They are not just one company; there are many companies that have data on performance marketing. They know their customers better, and everyone has access to AI. ByteDance is developing its own LLM, and Meta is working on Llama, while Google is engaging in fun projects.

It's about combining things. So, performance marketing has already started responding at this stage; the market is entering from stage one to stage two. In that case, what remains? I believe we are entering an era where branding marketing becomes extremely important again. Branding marketing ultimately allows us to train AI through various channels, optimizing our content for AI searches at a rapid pace. Moreover, the significance of AI searches lies in the fact that they not only yield results but also, through the FAQ section, continuously engage consumers with responses. Among these, advertisements are also included. Do you have content related to FAQs? If people ask questions with a certain intent, is there content that optimally connects to the next intent? If not, then just AI...

As we generate, there can actually be hallucinations that arise, and in trying to draw connections, AI inevitably has to fill in answers using the leg data it possesses. However, if the answers are lacking, it doesn’t create well. Therefore, the content marketing and brand marketing related to these answers are crucial. How broadly are we understanding people's intents while producing this? This marks a time when marketing becomes increasingly important, and I believe we are entering a third stage of marketing. In the current AI era, of course, WPP is a major marketing agency. Mark Read, the representative, predicted in February 2023, during an interview with The Guardian, that AI marketing will fundamentally change the landscape. Back in February 2013, many people spoke about changing the game in relation to content generation.

What is even more important is that we are already entering the performance marketing stage, and this signifies that AI agents have genuinely entered the realm of performance marketing. Furthermore, since agents are now also moving into search services, it is crucial for us to consider how we will respond at this pivotal moment. The paradigm of marketing is shifting because of AI. Therefore, understanding how this transition is occurring and how we will respond is essential. For specifics, I encourage you to attend the conference. Today, I've only given you a brief preview. To fully elaborate on this topic would take too long, so I hope you will join us for the ambitious conference we have prepared. While I believe large enterprises are important, I also want to emphasize the significance of SMBs, as we are discussing small businesses as well.

Medium business means that Instagram and Facebook are heavily advertising, and they can promote new products. Therefore, they are very important platforms. Even without spending a fortune on TV ads, if you use Instagram, Facebook, and WhatsApp appropriately, you can create significant trends. Nowadays, TikTok is also becoming a major stage for this, especially in the United States, Europe, and Asia. Recently, Zuckerberg mentioned at the AI Global Conference in September that although it is still a long-term prospect, small and medium business owners will soon be able to sell products simply with a product and budget, thanks to AI agents. He also discussed how marketing tasks can change with AI agents, mentioning developments like Microsoft Copilot Studio.

In small companies, it is often too burdensome to hire capable marketers who can continuously research the brand strategies, characteristics, and pricing structures of competitor products. When they focus heavily on product development, marketing is mostly outsourced to agencies. They typically have only one or two marketing staff members. Even with annual revenues of 10 billion, 20 billion, or 30 billion won, if they have an agent, that agent can conduct market research 24/7 throughout the year. By inputting competitor information, they can analyze the competitor's brand strategy and continuously monitor changes in the competitor's product pricing, allowing them to dynamically adjust their own pricing. This kind of capability was previously only possible for large corporations, but small businesses can also engage in such marketing practices.

In terms of strategy, as agents become more popular in the agent market, they can do what large corporations have been doing. This opens up business opportunities for small and medium-sized enterprises (SMEs). I believe that AI agents will drastically increase the productivity of economic entities and change the nature of work. Particularly for SMEs, this means that they can access the high-level talent and business value that were once only available to large corporations. We are entering an era where AI agents can realize these values for companies. This also means that businesses need to rethink their growth strategies on how they will evolve in the future. Attending this conference might provide some insights into this. The corporate strategy planning departments in large companies exist for a reason; they are there to analyze such matters, and now SMEs can also leverage AI agents to do the same.

With that being said, small businesses and individuals have been able to establish their own brands with the rise of TikTok and Instagram, right? However, to do that, creativity has to be top-notch. Not only do you need to have great creativity, but you also need to be able to sell yourself, right? Those who lack that ability often struggle. The businesses and popular restaurants that thrive on TikTok and Instagram are a small fraction, I believe less than 1% when looking at overall statistics. The rest don't even dare to try. But if you can create a good product that meets market needs, even if the product isn't perfect, it's still possible to generate sales with a reasonable budget. This is the era we live in, where you can make mid-level sales, and it's the world that people at Meta and others are dreaming of. For example,

Amazon struggles even with creating product detail pages. Good marketers excel at crafting these pages, but we are moving into an era where AI can generate them as well. Recently, Amazon showcased the future of their shopping AI agents during their re:Invent event in early October. While it's not immediate, in the future, when different target groups visit, the detail pages could be customized for each group. This represents a world that agents can help create. Small and medium-sized businesses (SMBs), which previously couldn't afford such capabilities, are now entering an era where they can utilize these agents. The only example that has existed so far is Netflix; when I log in, it shows different content than when Dr. Kang logs in. It used to be like that, but now anyone can have such personalized experiences. What’s important is that, as mentioned, whenever new technology emerges, it always...

When Instagram first came out, it was said that anyone could become an influencer, but there are clearly those who excel and those who do not. Ultimately, it means that in the future, there will be a divide between those who can effectively use AI and those who cannot. However, using AI is becoming much easier. Recently, CEO Lee made an agent builder, and on October 21, Microsoft unveiled something called Copilot Studio, which is also a builder. By using natural language to give tasks or requests to our subordinates or colleagues, an agent is created. For example, McKinsey receives over ten thousand consulting-related emails every day.

Then, we need to collect all of this and pass it on to the appropriate person, right? That's something that has been done by people until now. How do we view all of this? Since it's a customer, we need to analyze it and see that this requires expertise in consulting. In fact, there are many cases where people express things inaccurately or vaguely, so if we can respond to this appropriately, the likelihood of converting them into customers increases. We analyze the content and eliminate vague words, mapping it to specialized knowledge. Specifically, we identify what the person is inquiring about and what kind of consulting they are requesting. Then, we connect this with our database of representatives. The agent can match this with the database and convey it to the person. However, this person also has an email.

It’s difficult to interpret, so we’ve set up an AI email system to forward requests to the person in charge. This way, the person in charge can directly contact the customer, and we’ve created this task as an agent. Overall, this has reduced costs by nearly 90%. This shows that large companies can certainly solve many parts of their business processes through agents. Now, Microsoft has publicly introduced Copilot Studio for Microsoft 365, which includes ten autonomous agents. Think of Dynamics 365 as something similar to SAP; it’s a service that integrates ERP and CRM. It can handle supply chain management, HR, procurement, and more. All these solutions are included, and we’ve developed a conversational agent specifically for supply chain management.

There is, but the biggest problem with just managing supply is that in this case, Rivian, which is an American electric vehicle company, is experiencing issues where if a specific part suddenly does not arrive, the factory has to stop. This results in enormous costs. Therefore, checking whether they can procure from that side according to the times has been managed manually through phone calls until now. However, now this agent facilitates communication. Especially if that company uses Dynamics 365, AI can engage in conversation. It can communicate that procurement is proceeding without major issues or that problems might arise, and then it sends this message to a person. This allows the person to prepare measures and responses accordingly. Essentially, using such large-scale ERP systems is difficult for small and medium-sized enterprises. This is completely designed for large corporations like Microsoft.

Large corporations can reduce costs in their operations and manage company risks, which is why we are entering an era of agents. For large companies, there will be opportunities tailored to them, and for small and medium enterprises, new opportunities will arise through agents. It will be interesting to see how these aspects are implemented in the marketing sector and how they will evolve in the age of AI search. I believe that the era of AI search is coming, and the likelihood of this happening is very high. The dominance of a monoculture single search market, where we had to rely solely on Google or Naver and Naver Maps, may be coming to an end. The restructuring of the search market means that a fundamental reorganization of digital marketing must take place. Furthermore, offline advertising is becoming increasingly important. For instance, Samsung Smart TVs could potentially incorporate search features.

Of course, I believe it's possible. This means that people can search and chat with GPT while watching a drama or movie. They will likely want to integrate it with Bixby. I think LG Electronics will also consider this; why wouldn't they include search GPT? Therefore, I believe that smart TVs will fundamentally incorporate search GPT, or perhaps Google's Gemini, in the future. This is why the boundaries of traditional digital marketing are expanding, and the marketing environment will inevitably undergo fundamental changes. In this context, there is a need to redefine the know-how, rules, and guidelines here, as well as the ABCs of marketing. Of course, we won't provide a complete guidebook to the answers to everything at this conference, but we need to focus on what is important here, and we will see both Aido and Rainer here.

When you come to my presentation and return, I will discuss the concerns that are prevalent in this industry and propose solutions regarding issues like blurred lines. I believe we will unveil the AI ranking service on that day. Just as you saw earlier, we can understand how companies like Hyundai and Honda should approach branding and marketing by looking at various indicators. We need to know what to observe in order to grasp the situation and determine where to start. We will also explore what technical prerequisites a brand must have. I think this will be a time to hear diverse perspectives and address the concerns on the ground during the discussion session. If you are a marketer, I believe this event is essential to attend; otherwise, it could be a significant missed opportunity, especially in performance marketing.

It didn't disappear just because new advertisements were created; it was an addition to the existing ones. Those who were skilled in that era thrived, while those who couldn't adapt were considered outdated. This kind of perceptual shift occurred. With the advent of mobile technology and AI, similar shifts can happen again. Since we are still in the early stages, when evaluating mobile apps, we initially only looked at download numbers. However, now we also consider revenue and various other indicators. In the beginning, there were only download counts, but it became clear that high download numbers alone don’t guarantee revenue. So, we started looking at metrics like MAU and ARR, and various KPIs emerged.

It has started to emerge. Since we are at the beginning of this era, I hope we can discuss what kind of developments will unfold in the future. I would like to invite everyone involved in marketing, not just marketers but also developers as mentioned earlier, to join us. If there are anyone who has even a slight connection to marketing, this event could be a great opportunity. This is a market that has not existed until now and is just beginning to take shape. I think it would be beneficial for everyone to gain some ideas from this. I believe this type of event doesn't even exist in the United States yet. Of course, there might be some events similar to it, but there are certainly many AI summits. We will also introduce topics like AI search optimization, and there are related papers that have been published recently.

There has been a significant development, and it has reached the point where papers are being published. The United States is indeed ahead in this regard. However, many people are coming together to share their concerns. I mentioned that I think this is a meaningful gathering and perhaps exaggeratedly said that I am thinking more like someone from the U.S. I heard that registration is on a first-come, first-served basis because the event is not very large and only a limited number of people can attend. So, I think it would be wise for everyone to hurry and register. That's right. If we delay too much, the situation may change, and we won't know what else might come up. We are currently preparing very tightly for this. We will continue to share insights and keep you updated, whether online or offline. Especially at this kickstart moment, I hope we can start together and move faster than others.

It would be great. So today, as I keep asking questions, it seems like there is a lot of information being shared. Since this is something we need to do for our event, right? This time, we will not be filming the event for our tea time. There is a lot of high-level information that can only be learned by attending in person. If this gets recorded and uploaded, the speakers tend to filter their content to some extent, so they won't share everything. Therefore, the honest discussions will take place only within that setting. Yes, that’s correct. We will likely have comments posted here, but on November 29th, I hope to meet the instructors and have a good time with you all. Let's conclude here for today. Thank you very much.

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