Analysts at Ken Research in their latest publication “Vietnam Online Advertising Market Outlook to 2023 - By Medium (Desktop and Mobile), By Types of Advertising (Banner, Video, Search, Social Media and Online Classifieds & Others), By Sectors/Industries (FMCG, Healthcare, Entertainment & Media, Retail & E-Commerce, Automotive, BFSI and Others) and By Pricing Models (Cost per Mile (CPM), Cost per Click (CPC) & Cost per Action (CPA)” believe that with advent of strong internet infrastructure, increase in number of smartphone users and rise in acceptance of digital advertising channels by brands  in Vietnam will pave the path for growth of Vietnam online advertisement market. Growth in the sector has also been fuelled by increase in the usage of social media and emergence of data security and localization regulations. The market is expected to register positive CAGR of ~21% in terms of advertising expenditure during the forecasted period 2018-2023E.

Overview:  Advertising costs in Vietnam is generally low compared to others region in Southeast Asia. Though, the traditional advertisement channels such as T.V, print media still dominated the overall advertisement industry, however, digital marketing or advertising is seeing the highest growth among all others with many business now pushing their brands on digital platform to enhance their brand visibility. In digital advertising, social networks now rival search engines as an effective online marketing and advertising channel, gaining a significant market share and generating huge revenues in Vietnam. The market witnessed immense growth in these segments with rise in number of smartphone users and internet penetration in the country.

Growth Drivers: Attitude towards switching from traditional to online advertising is being adopted by the Vietnamese. The advantage of using online platforms as a medium for advertising is that it can optimize the monetization better as compared to the traditional medium. Moreover, the Vietnamese government is coming up with cyber security laws that can increase the internet penetration rate further.

Competition: In Vietnam, Google and Facebook contributed the maximum share of online advertising spending.  Along with these, Vietnam has come up with some local Apps such Zalo or Cốc Cốc Browser that will further promote the idea of advertising the products and services over an online platform. Owing to increasing number of social media users and rise in media consumption, share of social media platforms seems to benefit higher in the long terms. Major advertising agencies in Vietnam are competing on the basis of number of clients, industry expertise, advertisement cost etc. Few popular advertisement agencies in Vietnam which have the highest visibility are Group M, Publicis, Dentsu, Clever Ads, Adtima.
Future Potential: The Vietnam Online Advertising Market is forecasted to grow but at a slower pace as compared to the other countries in the Southeast Asia. The factors for its growth lie in the growing young population base that is internet savvy. Due to the increased use of the social media and the E-commerce for a variety of activities, the internet penetration rate is growing since its inception in Vietnam.

Source: Ken Research
 

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