KNOREX Delivers 47% Surge in Conversion Quality and 45% Reduction in CPA Following Major KAIROS™ AI Models Upgrade

Key Terms

programmatic advertising technical

Programmatic advertising is the automated buying and selling of digital ad space using software and data to match ads to specific audiences in real time, like an electronic auction where advertisers bid for attention and publishers sell ad slots. It matters to investors because it shapes how efficiently a company can turn user attention into predictable revenue, affects margins and growth potential, and brings data-privacy and platform-quality risks that can influence future earnings.

cost per acquisition (CPA) financial

Cost per acquisition (CPA) is the average amount a company spends to gain a single paying customer or a desired action, such as a sale, sign-up, or lead. It matters to investors because it shows how efficiently a business turns marketing and sales spending into revenue—like measuring how much each store flyer or online ad must cost to attract one buyer—and helps assess profitability, scalability, and whether growth spending is sustainable.

return on ad spend (ROAS) financial

Return on ad spend (ROAS) measures how much revenue a company earns for every dollar it spends on advertising, calculated as revenue from ads divided by ad cost. Investors use ROAS to judge whether marketing is efficient and scalable—high ROAS means ads are producing strong sales like getting many deliveries from a full tank of gas, while low ROAS suggests marketing may be wasting money or hurting profit margins.

predictive bidding technical

Predictive bidding is an automated approach that uses past data and forecasts to set how much to offer in an auction or competitive buying situation, aiming to win at the best price. Think of it like a smart auto-bidder that estimates the chance of winning and the right amount to pay; for investors, it can change a company’s advertising costs, sales prices, or trading execution, and therefore affect revenue, margins, and cash flow.

traffic quality modeling technical

Traffic quality modeling is the practice of analyzing website or app visitor behavior to separate genuine human users from low-value or fraudulent visits, such as bots, repeat clicks, or accidental page views. Investors care because ad revenue, subscription rates and growth forecasts depend on real user engagement; modeling helps estimate the true audience size and predict whether reported traffic will translate into reliable income, much like checking the condition of a used car before buying it.

conversion data technical

Conversion data is the information a company collects about when and how visitors take a desired action — for example signing up, requesting a demo, or making a purchase — that turns them from casual browsers into customers or leads. Investors use this data to judge how well marketing and sales efforts actually produce revenue, much like counting how many planted seeds grew into trees to measure the effectiveness of a gardener’s work.

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Click-to-Conversion Rates Exceed 10% — 5x Industry Benchmark

Live Automotive Campaigns See Performance Uplift of Up to 100%, Strengthening Unit Economics and Revenue Scalability

SUNNYVALE, Calif. & SINGAPORE--(BUSINESS WIRE)-- KNOREX Ltd. (NYSE American: KNRX) (“KNOREX” or the “Company”), a leading provider of AI-driven programmatic advertising solutions, today announced the full-scale commercial deployment of major enhancements to KNOREX KAIROS™ after more than six months of selective deployments, the Company’s proprietary artificial intelligence decisioning infrastructure powering bid optimization and performance modeling within the KNOREX XPO™ platform.

The upgraded KAIROS Bid Model and CPA Model, now deployed across live automotive campaigns, have delivered:

• 47% average improvement in click-to-conversion quality

• 45% average reduction in cost per acquisition (CPA)

• Click-to-conversion rates exceeding 10% — more than 5x the ~2% industry benchmark

• Campaign performance uplift ranging from 25% to 100%

These measurable performance gains materially improve advertiser unit economics, return on ad spend (ROAS), and campaign scalability.

AI Engine Designed for Outcome-Driven Monetization

KNOREX KAIROS™ is the Company’s proprietary AI engine that powers predictive bidding, traffic quality modeling, and outcome-based optimization across programmatic advertising campaigns. Operating within the scalable KNOREX XPO™ platform, KAIROS continuously analyzes real-time behavioral signals, engagement patterns, and downstream conversion data to identify high-intent users, suppress low-quality traffic, dynamically optimize bids, and improve measurable business outcomes.

The significantly enhanced KAIROS Bid Model strengthens KNOREX’s ability to filter non-converting traffic before it reaches advertiser landing pages, materially improving traffic quality and conversion efficiency. Observed click-to-conversion rates exceeding 10% substantially outperform typical industry and native platforms’ averages.

In parallel, the upgraded KAIROS CPA Model has materially improved cost efficiency across automotive servicing campaigns, reducing average CPA by 45%. These improvements enable dealerships and automotive advertisers to acquire higher-intent customers while preserving budget efficiency, supporting stronger ROAS and more sustainable scaling of campaigns.

Driving Revenue Scalability and Operating Leverage

By integrating predictive traffic quality modeling with downstream conversion optimization, KNOREX shifts campaign performance from click-centric metrics to outcome-driven economics. This AI-driven approach enhances monetization efficiency for advertisers while reinforcing the scalability of the KNOREX XPO™ platform.

The commercial deployment of these upgraded AI models supports KNOREX’s strategy to drive long-term revenue scalability, strengthen advertiser retention, and improve platform-level operating leverage. As advertisers realize improved acquisition economics and measurable performance gains, KNOREX is positioned to expand campaign budgets and deepen client relationships across verticals.

Strengthening Competitive Position in AI-Driven Programmatic Advertising

These advancements reflect KNOREX’s continued investment in proprietary AI technologies designed to deliver scalable, performance-driven programmatic advertising. By combining bid quality optimization with CPA-focused modeling within a unified AI infrastructure, KNOREX enhances its differentiated competitive position in the rapidly evolving AI-driven advertising market.

The Company intends to extend these KAIROS’ enhancements across additional verticals as part of its broader strategy to deliver measurable business results and drive sustainable revenue growth.

About KNOREX Ltd.

Founded in 2009, KNOREX Ltd. (NYSE American: KNRX) is a B2B technology company that provides AI-driven cross-channel programmatic advertising products and solutions to help businesses to simplify digital advertising. The Company's flagship platform, KNOREX XPO^sm, is an AI-powered, cloud-based advertising technology platform that enables marketers to efficiently plan, execute, and optimize cross-channel ad campaigns across a diverse range of digital media, including social media, search, CTV/OTT, video, audio, display, native, and DOOH advertising.

By leveraging advanced AI/ML-driven automation, KNOREX XPO allows advertisers to enhance campaign performance, reduce wasted ad spend, and scale their marketing efforts while maintaining efficiency and transparency. The platform is designed to address the growing complexity in digital marketing by centralizing campaign execution and analytics into a unified, data-driven workflow.

KNOREX serves global enterprises, agencies, and brands across multiple industries, helping them navigate the rapidly evolving digital advertising landscape with automated, intelligent, and data-driven solutions. The Company has operations in the United States, Vietnam, India, Malaysia, and Singapore.

For additional information, please visit www.knorex.com.

FORWARD-LOOKING STATEMENTS

Certain statements in this press release are “forward-looking statements” as defined under the federal securities laws, including, but not limited to, the Company’s expectations regarding the completion, timing and size of the proposed Offering and statements regarding the use of proceeds from the sale of the Company’s shares in the Offering. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs, including the expectation that the Offering will be successfully completed. Investors can find many (but not all) of these statements by the use of words such as “believe,” “plan,” “expect,” “intend,” “should,” “seek,” “estimate,” “will,” “aim,” and “anticipate,” or other similar expressions in this press release. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s registration statement and other filings with the SEC.

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Crescendo Communications, LLC
212-671-1020
KNRX@crescendo-ir.com

Source: KNOREX Ltd.