How to Leverage Naver Display Ad's Keyword-Based Targeting

Zohid | 조히드
May 28
3 min read

How to Leverage Naver Display Ad's Custom Audience (Keyword-Based Targeting) for Maximum Performance

Naver Display Ad (Naver GFA) continues to evolve, offering advertisers increasingly precise tools to reach the right customers. One of the most effective yet underutilized features is Custom Audience targeting using keyword-based segments. This approach enables brands to show ads to users actively searching for relevant keywords—including those related to your brand, competitors, or broader product categories.

In this blog post, we’ll break down how keyword-based targeting works in Naver Display Ad, explore test results from major brands, and share strategies you can apply right away to improve return on ad spend (ROAS).

What is Keyword-Based Targeting in Naver Display Ad?

Keyword-Based Targeting (맞춤 타겟) in Naver Display Ad allows advertisers to reach users based on specific keyword interests. This is done by defining four distinct types of keyword groups:

Brand Keywords – Keywords including your brand or product name (e.g., "Nike”).
Competitor Keywords – Keywords mentioning competing brands or products (e.g., “Adidas”).
Category Keywords – Generic product category terms (e.g., “best running shoes”).
Category USP Keywords – Keywords focused on specific product benefits or consumer needs (e.g., “ultra-light running shoes”)

Case Study: Real Brands Using Keyword-Based Targeting

Naver conducted a large-scale performance test involving top advertisers in cosmetics, fashion, home goods, food & beverage, and electronics. Brands included Dr.G, Hera, Samsung, and more. Key takeaways:

1. Brand Keyword Targeting Delivers Strong ROAS

Example: Dong Suh Foods – KANU Coffee

Using product-specific keywords like “KANU capsule coffee” and combining them with benefit-focused ad creatives (“Buy now, get 10% off!”) significantly boosted ROAS.
Results:
- Basic brand keywords: ROAS +30%
- Product-specific keywords: ROAS +60%
- Capsule-focused keywords: ROAS +250%

✅ Tip: Use segmented brand keywords and pair them with relevant offers to improve targeting depth.

2. Competitor Keyword Targeting Helps Capture Market Share

Example: Amorepacific – Hera Cushion

Targeting competitors such as Jung Saem Mool and Lancôme showed a ROAS increase of 110%.
Even adjacent products like foundation drew a similar CTR, proving that cross-category keyword audiences can be just as valuable.

✅ Tip: Don’t limit yourself to exact competitors—include adjacent product categories to widen your funnel.

3. Category USP Keywords Outperform Generic Keywords

Example: Dr.G Sunscreen

Generic category keywords like “sunscreen” performed decently.
But keywords including USPs (e.g., “tone-up sunscreen”, “BB sunscreen”) showed +20% CTR, proving that intent-rich queries deliver better performance.

✅ Tip: Include consumer pain points and desires in your keyword set to align with searcher intent.

4. Inventory Placement Influences ROAS

Example: Xexymix Swimwear

The same creatives placed on Naver’s Special DA (main page) achieved 3x ROAS compared to standard Smart Channel inventory.
Inventory selection matters—particularly for remarketing or brand-aware users.

✅ Tip: Prioritize premium placements like Naver Main when targeting known audiences for higher ROI.

5. Audience Size and Reach Optimization

Example: Woongjin ThinkBig (Education)

With an initial keyword audience size of 110,000, the campaign achieved a unique reach of over 310,000 users in three weeks due to new daily searchers.
This confirms the dynamic and growing nature of keyword-based audiences.

✅ Tip: Ensure at least 100,000 users per keyword group to sustain daily spending (₩1 million/day is ideal for Smart Channel + Naver Main).

How to Set Up Keyword-Based Custom Audiences in Naver Display Ad

Step 1: Audience Planning

Segment your keyword groups based on the four targeting types:

Brand
Competitor
Category
Category USP

Step 2: Campaign Setup

Campaign type: Website traffic (not conversion-based, due to learning phase constraints)
Creative setup: Use evenly rotated creatives for A/B testing
Duration: Minimum 2–3 weeks
Budget: ₩25 million per advertiser was used in the test

Step 3: Creative Strategy

Use three core creative angles:

Product/Brand focused
USP/Benefit focused
Offer/Discount focused

Key Takeaways for Advertisers

Keyword-Based Targeting in Naver Display Ad allow you to align ad exposure with real-time search intent.
ROAS can exceed +100%–250% when using refined keyword segmentation (for B2C).
Premium placements such as Special DA significantly amplify performance.
Sufficient audience size (≥100K) ensures stable delivery and budget pacing.

Why It Matters

Unlike traditional behavioral or demographic targeting, keyword-based Custom Audiences on Naver Display Ad offer intent-based targeting—you’re reaching people who are actively researching your product category or competitors.

When executed well, this approach reduces ad waste, improves CTR, and drives better returns across all industries—from beauty and fashion to electronics and education.

Final Thoughts

As Naver Display Ad continues to grow in sophistication, Keyword-Based Targeting based on search keywords gives advertisers an edge in a highly competitive market. With proper keyword selection, creative alignment, and inventory strategy, brands can unlock major gains in both reach and efficiency.

If you haven’t tried keyword-based targeting on Naver Display Ad yet, now is the time.