Vietnam Advertising Market Outlook to 2030

Vietnam Advertising Market Overview

• The Vietnam advertising market is valued at USD 2.8 billion, driven by rapid digital transformation, increasing internet and smartphone penetration, and the booming e-commerce industry. With a growing population of digitally connected consumers, businesses are investing heavily in digital advertising, particularly in mobile, social media, and video formats. The market's growth is bolstered by Vietnam's dynamic economy, favorable demographics, and the increasing shift of both large and small businesses towards digital platforms for more targeted marketing.
• Ho Chi Minh City and Hanoi dominate the Vietnam advertising market due to their status as the countrys major economic hubs, with a concentration of businesses, tech-savvy consumers, and higher levels of disposable income. These cities are home to the headquarters of multinational corporations and local conglomerates, making them key markets for advertising spending across various industries, including retail, FMCG, and telecommunications. Their dominance is further supported by advanced infrastructure and widespread adoption of digital technologies.
• Vietnams government has implemented stringent content regulations, particularly for sectors like healthcare, finance, and gambling. In 2023, over 200 ads were taken down for violating content standards, leading to a stricter compliance framework for advertisers. The government has also been working to enforce local content production standards to further regulate foreign ads.

Vietnam Advertising Market Segmentation

• By Medium: The market is segmented by medium into television, digital (mobile and desktop), print, and outdoor advertising. Television has traditionally held a strong position in the market due to its wide reach and popularity, particularly in rural areas. However, digital advertising, especially mobile, is emerging as a dominant segment due to the widespread use of smartphones and increased internet accessibility.

• By Format: The Vietnam advertising market is also segmented by format into banner ads, video ads, social media ads, and native advertising. Video ads dominate the format segmentation, accounting for the highest market share in 2023. The popularity of video ads is driven by the rise of video consumption on platforms such as YouTube, Facebook, and TikTok. These platforms offer immersive and engaging ad experiences, making video ads particularly effective for brand awareness and product launches.

Vietnam Advertising Competitive Landscape

The Vietnam advertising market is dominated by a few major players, including local giants like VNG Corporation and Yeah1 Group, alongside global advertising agencies such as GroupM, Dentsu Vietnam, and Ogilvy Vietnam. These companies are driving innovation in digital advertising, leveraging technologies such as programmatic advertising, AI-driven ad targeting, and influencer marketing to optimize campaigns. The competitive landscape is characterized by high levels of consolidation, with the top players accounting for a substantial share of the market.

Vietnam Advertising Market Analysis

Growth Drivers

• Digital Transformation in SMEs (Digital Penetration): Vietnams rapid digital transformation is supported by the governments policies promoting digitization among small and medium enterprises (SMEs). With over 95% of the countrys businesses classified as SMEs, the digital landscape is expanding rapidly. By mid-2024, digital platforms were adopted by majority of SMEs, enhancing their advertising efforts. This shift has also boosted e-commerce, contributing remarkably to the advertising sector. In parallel, investments in digital infrastructure, valued at USD 13 billion in 2023, are enhancing digital advertising channels.
• Increasing Internet and Smartphone Penetration (Mobile Advertising Share): As of 2024, Vietnams internet penetration rate stands at approximately 78 million users, driven by the rise in smartphone ownership, which has reached 73 million devices. This vast user base has fueled a surge in mobile advertising. With the average Vietnamese user spending 6.1 hours online daily, mobile ads now dominate the digital ad market, accounting for around majority of digital ad expenditures.
• Growing E-commerce Market (Retail Ad Spending): E-commerce in Vietnam continues to flourish, with revenues projected to substantially by the end of 2024. This boom has increased retail ad spending, as major platforms like Shopee and Lazada invest heavily in digital advertising. The Vietnamese governments National Digital Transformation Program is a major driver of this trend, pushing companies toward online sales channels, which in turn boosts retail ad budgets.

Challenges

• Ad Fraud (Fraudulent Ad Traffic): Ad fraud remains a important issue, with fraudulent traffic undermining the efficiency of digital advertising in Vietnam. The rise of programmatic ads, which allow for real-time bidding, has also led to greater exposure to fraudulent activities. This challenge compels advertisers to adopt more advanced tracking systems to mitigate these risks. This issue underscores the importance of investing in better fraud detection tools to safeguard ad revenue.
• Strict Government Regulations (Advertising Compliance): Vietnams government has tightened regulatory oversight on advertising, especially in sectors like healthcare, finance, and gaming. These stricter laws focus on ensuring ethical advertising standards and better data protection. The Ministry of Information and Communications has also increased controls over cross-border advertising, which impacts global platforms like Google and Facebook. This move reflects the government's commitment to maintaining stricter compliance frameworks across digital platforms.

Vietnam Advertising Future Outlook

Over the next five years, the Vietnam advertising market is expected to experience significant growth, driven by the continued shift towards digital platforms, rapid urbanization, and the rise of social media usage. The market will benefit from advancements in programmatic advertising, video ad formats, and AI-based ad targeting. Additionally, as brands focus on optimizing their cross-platform strategies and incorporating immersive technologies such as augmented reality (AR) and virtual reality (VR) into their campaigns, the market will witness substantial transformation.

Market Opportunities

• Expansion into Rural Markets (Rural Ad Penetration): Rural areas in Vietnam are home to over 60% of the population, yet they remain underserved in terms of digital advertising. As internet infrastructure expands into these regions, rural digital ad spending is expected to rise by 25% in 2024. This presents a significant opportunity for brands to tap into an audience of over 55 million rural residents.
• Video Advertising Growth (Video Ads Engagement): Video consumption in Vietnam is skyrocketing, with over 90 million views on YouTube and TikTok daily as of 2024. Video ads now account for 55% of total digital ad spending, fueled by high engagement rates. This growth is further supported by investments in faster 5G networks, which enhance streaming capabilities