The Naver Advertising Guide Part 1: Everything You Need to Know About Powerlink

Unlocking Naver: Korea’s Dominant Search Engine and Advertising Powerhouse

Why Naver is Important for Digital Marketing in Korea

According to data from an OpenSurvey trends report, Naver is the leading Korean search engine, with 87% of Koreans using it, compared to 65.8% for Google. Unlike Google, which primarily serves as a search engine, Naver is an all-in-one digital ecosystem that integrates search, content platforms, e-commerce, and other local services, making it an integral part of everyday life in South Korea.

Not only do Koreans rely on Naver Search to find information, their engagement goes far beyond that. They check Naver Weather for forecasts, read breaking news on Naver News, and research products through reviews on Naver Blog. Naver Cafe, the platform’s community-driven forum, allows users to engage in discussions, share recommendations, and seek advice from niche communities. Naver Shopping and Smart Store are the go-to platforms for online purchases, while Naver Map helps users find restaurants, businesses, and local services as well as navigate throughout the country. Entertainment is also embedded, with platforms like Naver Webtoon for digital comics and Naver CHZZK for live-streaming.

Because Naver seamlessly integrates into so many aspects of daily life, it is the most powerful digital marketing platform in Korea.

Advertising Products by Naver, Korean Search Engine Giant

Naver Ads can be categorised into two big buckets – Naver Search Ads and Display Ads. Various types of search and display ads are offered by Naver as below:

Naver Search Ads

• Site Search Ads (Powerlink Ads)

• Content Search Ads (Powercontent Ads)

• Branded Search Ads (Brand Search Ads)

• New Product Search ads

• Shopping Search ads

• Place Ads 

Naver Display Ads

• Guaranteed Display Ads

• Performance-based Display Ads

• Naver Family Ads

We will talk about key products in the series, and the first part of this series is about Naver Site Search Ads, also known as Naver Search Powerlink Ads.

What are Naver Powerlink Ads, and How Can Foreign Brands Benefit From it?

Naver Search Ads Powerlink is a pay-per-click (PPC) advertising system that allows businesses to place sponsored links at the top of Naver results, Korea’s biggest search engine. This form of advertising works best when the conversion goal is to sell a product or service.

How Powerlink Ads Benefit Foreign Brands Entering Korea

Naver Search Ads Powerlink offers:

• Instant Visibility: By appearing at the top of search results, foreign brands can gain immediate exposure on the biggest Korean search engine without needing long-term SEO efforts.

• Highly Targeted Local Traffic: Ads are displayed based on keyword searches, ensuring that only users interested in relevant products or services see them.

• Budget Control & Performance Tracking: With a PPC model, brands only pay when users engage with their ads, making it an efficient use of marketing budgets. Brands can also set the CPC bidding cost per keyword to have more control over the advertising budget.

Where Do Powerlink Ads Lead? Placement, Cost, and Charging Structure

Ad Placement Locations

Naver Powerlink Ads appear at the top positions on Naver’s search engine results page (SERP) when users search for specific keywords. 

Powerlink ads can appear in the following locations:

• Top of Naver Search Results: These ads are displayed above organic search results when users type relevant keywords into Naver. They appear in a format similar to organic listings but are labeled as sponsored content.

• Naver Blog & Naver Cafe Search Result: Powerlink ads can also be shown within Naver Blog and Naver Cafe, which are two of Naver’s most popular content platforms. Users searching for product reviews or discussions in these sections will see Powerlink ads that lead to relevant landing pages.

Where Do Powerlink Ads Take Users?

When users click on a Powerlink ad, they are redirected to a landing page chosen by the advertiser. Businesses can direct users to:

• Official Business Websites (external company sites) – Ideal for driving traffic to an official brand page for more information or conversions.

• Dedicated Campaign Landing Pages – Custom-built pages optimized for promotions, lead generation, or specific marketing campaigns.

• Naver Smart Store Product Pages – If a business sells products on Naver Smart Store, Powerlink ads can drive users directly to a specific product listing.

• Naver Shopping Pages – For brands using Naver Shopping, ads can direct traffic to their product comparison and purchase pages.

• Naver Blog or Naver Cafe Articles – Some businesses use Powerlink ads to drive traffic to branded blog posts or community discussions for content marketing purposes.

By choosing the right landing page, businesses can maximize conversions and guide potential customers through their marketing funnel effectively.

Cost & Charging Structure

Naver Powerlink operates on a Pay-Per-Click (PPC) model, meaning advertisers pay per user click. Pricing varies based on the cost that the advertisers bid for each keyword, and bidding costs depend on the keyword competition and industry.

• Minimum CPC Bidding Cost starts from ₩70 (~$0.05) per click.

• High-Competition Keywords may have exponentially higher PPC costs. 

• Daily spending caps can be set by advertisers to better manage their budget.

• Dynamic bidding allows price optimization based on performance.

Pros & Cons of Naver Powerlink Ads

Pros: 

✔ High search visibility for foreign brands.

✔ Ability to target high-intent Korean consumers. 

✔ Flexible budgeting with cost-per-click pricing. 

✔ Integration with multiple Naver services for enhanced engagement.

Cons: 

✖ Competitive bidding can drive costs higher for popular keywords.

✖ Requires an in-depth understanding of Naver’s ecosystem for optimal performance. 

✖ Foreign businesses need to go through a manual verification process to set up an account.

How to Create a Business Account as a Foreign Entity

Steps for Foreign Businesses to Register on Naver Ads

Unlike local businesses that can set up accounts automatically by uploading a business registration certificate, foreign companies must complete a verification process with extra documents before running ads on Naver. This involves submitting additional documentation and directly contacting a representative at Naver to initiate the process.

Conclusion: Unlocking Success in the Korean Market

Naver Search Ads Powerlink is an essential tool for foreign brands aiming to dominate the Korean search engine market. By leveraging Naver’s unique ecosystem, businesses can:

• Increase visibility among engaged Korean consumers.

• Utilize cost-effective PPC models for keyword targeted marketing.

• Direct traffic to a variety of landing pages for sales and engagement.

While the account setup process for foreign entities requires additional documentation, the long-term benefits of entering Korea’s digital market far outweigh the challenges. By following the necessary steps and utilizing expert assistance, foreign brands can thrive in South Korea.

Navigating Naver’s advertising ecosystem as a foreign business can be complex, but you don’t have to do it alone. Waterbe specializes in creative marketing solutions, helping brands streamline the account setup process, optimize ad performance, and achieve success in the Korean market.