 Many posts uploaded on Naver blogs contain too many ads. |
On August 25, small business owners spoke out against Naver's search ads business. They claimed that Naver, the market-dominating portal with more than 80 percent of the domestic search market share, is determining their success or failure.
They criticized that Naver has been charging massive advertisement fees on them through its search ads business, regardless of damages on smaller players.
Besides, many small business owners are suffering trademark infringement on Naver's keyword searching.
Song, a 57-year-old shop owner who has been running a shop for more than 30 years with the same shop name, fought with Naver over trademark rights from 2011 to 2012. It all began when Naver carried out its keyword advertisement auction using popularity of Song's shop. Naver put up a shop name combined with the place name of Song's shop and its business item at its search ads auction, dealing a heavy blow to Song's business.
Song registered its shop as one of Naver's biz-sites but it didn't show up on Naver's top results. It's because Naver shows fee-paying internet sites at the top of search results in order from the highest to lowest bidders for the spot.
Song said, "When searched for our shop, Naver didn't show my shop but others'. I don't know how many times I fought against so that my shop could be exposed. I've been using the shop name for more than 30 years but instead of seeing a 'shortcut' menu, you can't even search for it on Naver."
Son, a 50-year-old who runs a shop in the famous Yong-In café street, said, "Huge amount of sales depend on Naver's search results for "famous restaurants". Those who has put ads on Naver cannot help but be suspicious about Naver's search results. A restaurant that was newly opened a week ago ranked high as one of the famous restaurants on Naver. It doesn't make sense. I don't know why Naver is leaving the situation as it is while many ad agencies are busy calling us."
Some portal experts said that Naver should display its ads apart, like Google. An official from a portal said, "The search ads issues began with excessive competition. Ads looking too close to normal search results has dropped the accuracy of normal search results and violated the fair trade in the ad market."