LG CNS uses AI technology to support Amazon sellers

An employee from LG CNS is introducing the digital marketing solution ‘LG Optapex’ at the ‘Unboxed 2024’ event held in Austin, Texas. (LG CNS)

LG CNS Co., a digital transformation company under South Korea’s LG Group, unveiled a digital marketing platform that leverages artificial intelligence (AI) technology.

LG CNS said on Wednesday that it unveiled the platform, called LG Optapex, at the Unboxed 2024 advertising conference taking place in Austin, Texas, the United States.

LG CNS held a seminar at LG Science Park in September 2024 for domestic marketing professionals, outlining its plan to develop LG Optapex as a “reverse direct-to-consumer” platform that helps Korean sellers market and sell products in the United States via Amazon.com.

Unlike MOP, which is based on advertising data, LG Optapex also optimizes using Amazon product data. The platform automates tasks like ad performance forecasting, budget setting, and bidding with AI, improving efficiency. If a seller is advertising sneakers on Amazon, for example, LG Optapex analyzes peak search times and ad click rates to increase actual purchases.

“Users can boost their business results on Amazon in just 10 minutes using LG Optapex,” a LG CNS official said.

LG CNS noted that through beta testing with around 30 companies, the platform significantly improved profitability. For example, a company that sells beauty products struggled to track sales trends in real-time due to the volume of products. LG Optapex detected a slight rise in aloe sunscreen sales in late spring and redirected the ad budget accordingly, leading to a 23 percent increase in sales compared to the previous year and a 25 percent reduction in ad costs.

LG CNS also highlighted the success of its AI marketing platform in Korea. A fashion retailer optimized bids for 100,000 search keywords over 24 hours, which helped meet consumer demand during late-night hours, increasing sales by 1.5 times without raising the ad budget.

According to Vision Research Reports, the global digital advertising market grew to $94.1 billion in 2024 from $56.5 billion in 2021. The market is projected to reach $261.1 billion in 2030.

LG CNS is also seeing a growing proportion of its revenue from exports. The company’s total revenue in 2023 was 5.6 trillion won ($4.1 billion), with exports accounting for 18.6 percent. This figure rose to 22 percent in the first half of 2024.