Online advertising is a type of marketing & advertising which use internet to deliver promotional advertising messages to customers. With the quick growth of internet users & internet technology, various companies started advertising their products or services online.It is also known as online marketing or web advertising or internet advertising.It provides a consistent platform for smooth shopping experience for natives. It also brings out the immediate outcomes of performance tracking,better targeting, improve brand recognition, insights, measurable, drive website traffic, easily creative, simple & fast, scalability, acquiring new leads, convert customers, flexibility, increase sales & revenue, engagement and cost effectiveness etc.
According to study, “Vietnam Online Advertising Market” the companies currently operating in Vietnam online advertising market are GroupM, Digital Marketing Vietnam, Publicis, Dentsu, Blueseed Digital, Mirum, PHD Media, Adtima, CleverAds, Face book, Zalo, Google, CocCoc Browser, FPT Online.Most of the players in Vietnam compete on the basis of promotion strategies, major clientele,their networking, and the platforms used for digital advertising.Pricing, brand value and advertising strategies adopted by a particular vendor are considered as of high significance in order to reach a wider intention audience in the country.
Based on medium, the Vietnam online advertising market is segmented into mobile and desktop. Desktop dominated the market due to better resolution of the advertisements & bigger screen. Based on type, the market is defined as video advertising, banner advertising, search advertising, social media advertising or online classifieds advertising etc. Social media has the highest market share owing to the higher custom of social media for calls, messaging, online payments and many more activities. In social media, Zalo and Face book messenger accounts the highest user penetration followed by Skype, Instagram, etc. Based on sectors, the market is breakdown into Fast-Moving Consumer Goods (FMCG), automotive, entertainment & media, e-commerce, BFSI, and others. FMCG is the top segment which spends a lot on its product & services advertising due to low product switching cost and high market competition followed by the healthcare sector that is coming up with new medical services & need to raise awareness among customers. Based on cost model, the market is segmented into cost per Mille (CPM) orcost per thousand impressions, cost per click (CPC), Click through Rate (CTR), Return on Investments (ROI) andCost per Action or Cost per Acquisition (CPA).
The market of Vietnam online advertising is primarily driven by growth in internet & smart phone penetration. Some other driven aspects include rise of e-commerce in Vietnam, rising innovative technologies, increasing government’s initiatives and increase in social media users. Apart from benefits, few of the issues & challenges are lack of proper hosting infrastructure, regulations by communist government, newspaper & television still dominates the advertisement market, difficult to measure an ad's reach and gaps between brand and agency etc.
In Vietnam, the online advertising market is being conquered by the traditional channels of advertising for instance newspaper, television, magazines and radio. It is estimated that this market will be grown due to higher internet penetration and the increased use of smart phones. It is also expected that the industry is anticipated to have a CAGR (2018-2023) of approximately 21%, owing to the availability of software that could measure ads reach & optimize the monetization rate.
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Ankur Gupta, Head Marketing & Communications