E-commerce companies are accelerating competition in AI-powered advertising automation, aiming to reduce sellers' operational burdens while maximizing ad efficiency through data-driven optimization. The strategy is also designed to boost both transaction volumes and advertising revenue simultaneously.
According to industry sources on May 11, Gmarket recently launched its AI-based advertising solution, “AI Product Ads.” The key feature allows sellers to input only minimal information, after which AI automatically creates ad creatives by analyzing product images, pricing, inventory levels, and consumer responses. The system also adjusts target exposure and bidding prices in real time.
Previously, sellers had to manually set keywords, manage bid prices, and analyze advertising performance on their own. AI now automates these processes, significantly reducing operational complexity. The platform is designed to improve ad efficiency based on click-through and conversion-rate data, enabling even inexperienced sellers to manage campaigns more easily.
11st is also moving quickly to advance its AI advertising capabilities. Late last month, the company introduced “AI Boost Up,” a new option within its AI-powered ad automation program, “AI Campaign.”
Under the AI Campaign system, sellers simply set their budget and target return on ad spend (ROAS), while AI selects products with high sales potential, predicts advertising performance, and optimizes exposure accordingly.
The newly added AI Boost Up feature further automates coupon distribution and budget management based on campaign performance. AI automatically issues discount coupons to shoppers at optimal moments to encourage purchases. It also includes a “flexible daily budget” function that can automatically increase daily ad spending by up to 150% if campaigns exceed target ROAS.
The feature is intended to minimize situations where ad exposure stops prematurely because the budget is exhausted during peak sales periods.
Industry observers say open-market operators and other e-commerce platforms are increasingly focusing on expanding AI-driven advertising products as a way to maximize profitability. Advertising businesses are viewed as relatively high-margin revenue streams.
As AI continues learning from consumer behavior data and product information within platforms to optimize ad performance, sellers are likely to become more dependent on those platforms. In the highly competitive e-commerce market, where product variety is directly tied to platform competitiveness, AI advertising is also emerging as a tool for attracting new sellers.
Another advantage is the significantly lower barrier to entry for small businesses and merchants that lack dedicated advertising professionals.
An official from 11st said, “We plan to continue advancing our AI-based advertising functions,” adding, “We will support new sellers and small business owners so they can operate advertisements more easily and gain greater opportunities to expand sales.”
