- AI: Analyzes ad performance metrics and product sales data to predict future ad results
- Mathematical Optimization: Leverages advanced algorithms to dynamically optimize bids, budget allocation, and automated bidding, maximizing ad performance and efficiency in real-time.
SEOUL, South Korea, Oct. 15, 2024 /PRNewswire/ -- LG CNS, a leading DX (Digital Transformation) company, today announced the unveiling of LG OptapexTM at Amazon Ads' unBoxed 2024 event in Austin, Texas, U.S. LG CNS plans to launch LG Optapex in the U.S. market in the first half of next year.
unBoxed is an annual advertising conference hosted by Amazon Ads to connect with ad agencies, sellers, and industry-leading ad tech solution providers. This year, the event takes place over three days from October 14 to 16 (local time). Notably, LG CNS's participation at unBoxed showcasing the LG Optapex solution marks the first time a Korean company has participated in the event.
LG Optapex, the global version of the company's Marketing Optimization Platform (MOP), leverages advanced AI and Mathematical Optimization to enhance e-commerce advertising performance. The name 'LG Optapex' is derived from 'Optimization' and 'Apex,' which reflects LG CNS's goal to help clients achieve peak performance through advanced optimization technology.
LG Optapex is a platform that specializes in assisting sellers on the Amazon marketplace, the world's largest channel for e-commerce. While MOP enhances ad execution efficiency in portal search advertising and display advertising, LG Optapex is specifically tailored to maximize profitability on Amazon. LG Optapex empowers Amazon sellers with 24/7 AI-driven campaign optimization, automatically maximizing conversions and reducing costs – even during off-hours when manual supervision is difficult. This continuous optimization always ensures peak ad performance, giving sellers a competitive edge in the fast-paced Amazon marketplace.
LG Optapex streamlines sellers' advertising activities by predicting ad performance, optimizing budget allocation, and automating ad bidding. The AI-powered platform starts by analyzing data and forecasting the ideal budget and bid price. The mathematical optimization technology then utilizes these predictions to calculate all possible outcomes. For instance, if a fashion retailer aims to sell sneakers through Amazon search ads, LG Optapex analyzes when consumers are most likely to search for sneakers, determines the best ad placement, calculates competitiveness, and manages the search ad campaign to optimize conversion rates.
Amazon sellers often manage dozens, or even hundreds, of products simultaneously. Spending hours analyzing ad data to manually adjust the keyword bid for each product – especially on a regular basis – can be impractical for many sellers. LG Optapex can effectively address this problem by simplifying and automating the entire process. Sellers are only required to set the target budget, campaign schedule and optimization objectives, which includes options such as maximizing sales and profit. Once set, LG Optapex determines the optimal solutions and manages the ad campaigns automatically, allowing sellers to save resources and enhance their Amazon business in under 10 minutes.
LG Optapex analyzes different categories of product sales data, including product margins, FBA (Fulfillment By Amazon) fees, shipping costs, and inventory expenses. By combining Amazon's advertising data with product information, LG Optapex helps sellers to enhance profitability while accounting for challenges such as competitor activity, seasonal fluctuations, and changing trends in real time. Sellers can easily monitor campaign performance through the LG Optapex dashboard, featuring an intuitive UI (User Interface)/ UX (User Experience) for streamlined campaign management.
LG Optapex underwent rigorous beta testing with approximately 30 partners to verify its performance, and all partners have reported increased profitability on Amazon after adopting LG Optapex. For example, one cosmetic company experienced a modest increase in sales of aloe sunscreen as the weather warmed up in late spring. This trend went unnoticed by the seller, as the seller had to manage hundreds of products simultaneously. Fortunately, LG Optapex was able to identify this opportunity through 24/7 monitoring and reallocate the budget from other products to the aloe sunscreen. As a result, the seller experienced a 23% increase in sales, a 43% rise in profit, and a 25% decrease in advertising costs leading up to the summer season.
LG CNS initially introduced MOP to the Korean marketing sector in May of last year and received significant interest for its advanced technologies, including AI and mathematical optimization. The platform was developed over three years through collaboration with advertising experts, AI specialists, data analysts, data architects, and professionals from various industries.
Since its launch last year, MOP has been adopted by both large corporations and top Korean advertising agencies, gaining over 1,200 corporate clients and now managing over 220 billion KRW in advertising spending on its platform. As an example of its performance, one health supplement business saw a 30.1% sales increase compared to advertising costs after implementing MOP, while a manufacturing firm increased search ad impression by 15.3% and reduced cost per search ad by 12.9%. These successes have paved the way for LG CNS to expand into the global advertising market.
"Over the past year, MOP has leveraged LG CNS's cutting-edge DX technologies such as AI and mathematical optimization to pioneer intelligent advertising and deliver unparalleled value to our clients," said Bumyong Kim, head of the CX Digital Marketing Business Division at LG CNS. He added, "Looking ahead, LG Optapex is poised to become the go-to solution for Amazon sellers to succeed in the global marketplace."
※Terms
1) Portal Search Advertising: Advertising activities displayed on keyword search result pages of internet portal sites that operate in real time. Companies determine advertising costs by bidding on factors such as ad placement and run ads based on the winning bids. This type of advertising involves multiple companies competing in a bidding process to achieve optimal advertising results.
2) Display Advertising: Advertisements presented as banner ads and pop-up ads that utilize visual elements like images and videos.
About LG CNS
LG CNS is a leading Korean digital transformation (DX) company that continues to pioneer various emerging technologies such as the cloud, generative AI, big data, smart factory, smart city, smart logistics and digital marketing. The company is also leading the market through innovative system integration (SI) and system management (SM) projects in finance, manufacturing, the public sector and various other industries. For more information, please visit www.lgcns.com.
** The press release content is from PR Newswire. Bastille Post is not involved in its creation. **
LG CNS Introduces AI-Powered 'LG Optapex' to U.S. Advertising Market at Amazon Ads' unBoxed 2024 Event
