AligoAi, an AI technology company based on recommendation algorithms, is attracting attention in the startup market. Having previously provided AI-based personalized recommendation services, it recently shifted its focus and is leading a paradigm shift in the advertising market with a new service called "Celevu."
Aligo AI initially launched as a web display personalized targeting service centered on Cold Start technology. Cold Start technology leverages real-time data collected, including country of access, IP address, and device characteristics, to instantly deliver personalized content to new visitors. For example, users accessing the service for the first time from Japan are prioritized for products popular in Japan.
Based on these technologies, AlligoAI launched a variety of personalized services, including e-commerce recommendations and CRM outbound targeting. However, as market conditions became more challenging, the company shifted its focus to connecting advertisers with celebrities, the most influential figures in e-commerce and advertising.
From celebrity endorsement contracts to content creation and ad execution in just 5 days.
Celevu, as its name suggests, is a portmanteau of "celebrity" and "vu" (French for "to see"). Advertisers can sign advertising contracts with celebrities, such as singers and actors, and complete content production and execution in just five days.
Typically, using a famous actor or singer as a model for an advertisement takes at least one to two months, from the initial recruitment process through an agency, to signing a contract, and finally, the entire shoot. Even with an influencer, it can take upwards of four weeks. However, Celebu has streamlined this process, dramatically reducing both time and costs.
Advertisers can start a celebrity ad campaign for as little as 1 million won. For celebrities with high profiles and popularity, the price can range into the tens of millions of won. Contracts that would have cost hundreds of millions of won using traditional methods can now be executed quickly and at a much more reasonable cost through Celebue. Aligo AI CEO Lee Jang-hyuk explained, "Our greatest competitive advantage is that we offer celebrity advertising easily, quickly, and affordably."
Currently, Celebu features a diverse range of celebrities, including actors Lee Dong-wook, Cha Seung-won, Kim Hye-yoon, and Jo Yi-hyun, as well as singers Sunmi, Yubin (Wonder Girls), and Sandara Park (2NE1). Collaborations with major entertainment agencies, including SM Entertainment, are also in the works, and in the future, the platform plans to expand to include professional gamers, athletes, global OTT actors, characters, and politicians.
What's interesting is that Celebu isn't simply a one-way structure where advertisers seek out celebrities. In the future, it plans to expand into a two-way structure where celebrities can make counteroffers, saying, "I want to work with this brand." This will also open up new business opportunities for celebrity agencies.
Performance advertising and marketing are possible, from low-involvement products to luxury brands.
Customers seeking out Celebu are primarily manufacturers of consumer goods and durable goods. For low-involvement products where search advertising is limited, celebrity marketing is highly effective. For automobile and luxury brands, it can be utilized in a variety of ways, including through social media content and event invitations.
Advertisers often seek out Celebu with specific celebrities in mind. Celebu can execute a contract in a single day, a process that previously took months, accelerating the performance marketing cycle.
Automatic brand and celebrity matching and content creation
At the heart of Celebu is AI. Celebu uses a personality matching algorithm to recommend celebrities that will maximize advertising effectiveness. Furthermore, it leverages AI-based content creation technology to quickly process celebrity images, reducing costs.
We've also secured patented technologies, including a brand-celebrity matching algorithm, a parallel contracting process, and a fair pricing model. Advertisers receive appropriate pricing proposals based on conditions (country, medium, period, etc.), and AI algorithms facilitate rapid negotiations.
Going forward, we plan to establish a "Celebrity Intelligence System" to provide optimal matching based on timely information, such as performance and broadcast schedules. Furthermore, we plan to expand our K-Celebrity Invitation Service into a platform that invites Korean celebrities to events around the world.
Helping the K-culture ecosystem grow and enter the global market
The advertising industry has recently been focusing on virtual models and virtual humans. However, AlligoAI believes that digital twins based on real people have greater sustainability potential. Virtual models are likely to face issues related to portrait rights and limitations in consumer acceptance.
Alligo AI aims to provide new revenue opportunities for lesser-known actors and new singers. The company aims to guarantee a stable monthly income of 3 to 5 million won to supporting actors and new artists who are often overlooked in traditional advertising markets. This approach aligns with its social vision of promoting healthy growth across the K-culture ecosystem.
Alligo AI chose Paris as its first step into the global market. This is due to the high concentration of luxury brands and celebrities at major events like Paris Fashion Week. In fact, this year, the company participated in VivaTech, Europe's largest startup exhibition, and is currently in discussions about collaborations with global advertising agency Havas Media and Zalando, Europe's largest fashion e-commerce platform.
In the future, we plan to expand into the North American, Japanese, and Southeast Asian markets and collaborate with major global advertising agencies to scout local celebrities and provide services.
Challenges in the Global Retail Media Market
When asked about the difficulties he faced while running his business, CEO Lee Jang-hyeok of Aligo AI answered as follows.
"Many investors only focus on short-term profits, which was difficult. But I treat work like a game. That's why I love Aespa's 'Next Level.' Even though it's a lot of hard work, if you think of it as clearing the next level, like a game, you can share a sense of accomplishment with your team and enjoy your work."
Alligo AI's ultimate goal is clear: to provide Celebu services to global retail media markets like Amazon and Carrefour. More than 60% of online advertising is shifting to digital, and retail media advertising, in particular, is growing rapidly worldwide.
Providing advertisers with fast, engaging content, celebrities with new revenue opportunities, and consumers with a more enjoyable advertising experience—Aligo AI is creating a virtuous cycle of this triangle through Celebu.
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