Gathering advertising spending and trend in Vietnam

In the past decade, TV was by far the largest advertising medium in Vietnam. In 2015, TV ad expenditure in Vietnam was estimated at 969 million U.S. dollars. Furthermore, the source predicted it would grow to approximately 1.3 billion U.S. dollars by 2018. In that year, the Vietnamese ad market was predicted to reach 1.46 billion U.S. dollars while the advertising market value of the Asia Pacific region reached 228.7 billion.

  Figures from 2018 showed that the Vietnamese spent around 151 minutes on watching television every day. Due to the population’s trust in TV advertising and its reach in both urban and rural areas, TV proves to be an effective advertising medium, especially for FMCG. During the World Cup 2018, the men’s personal care brand Romano reached about 6.59 million TV viewers with their advertising spots.

  While the figures predicted that it was less likely for traditional newspapers and magazines to experience a growth in ad spending, internet advertising was forecasted to grow steadily. Especially with the rise of smart TV consumption, a bridge between TV and internet advertising has been built. In 2017, the majority of enterprises also stated that social media and online newspapers have become their main advertising channels.

    

  From statistics accumulated for the past 5 years from 2014-2018; The main media that growth every year are TV +10% every year, Internet media +30-35% per year and out-of-home media / transportation media +8-10% per year. While other media growth a bit or none.

  While the survey by CCIFV found that outside media is the 3rd touchpoint among Vietnamese people Second only to television and the internet, accounting for 71% in 2019.
 

  Under the national strategy for the development of the cultural industry by 2020, the Government has set a revenue target of $1.5 billion from advertising by 2020 and $3.2 billion by 2030. The city’s advertising industry is aiming for a high growth rate in line with global trends while also ensuring harmony with Vietnamese culture and the national cultural identity.
 

With the rapid development of technology and communications, the advertising industry needs to reform constantly to keep up with. These are key trend for aiming to develop the future of advertising industry in Vietnam.

With the rapid development of technology and communication techniques. Communication channels are making big changes, outdoor advertising (OOH) is no exception.

  3-4 years ago, the number of outdoor advertising screens only counted on the fingertips with the average display quality, now more new positions have appeared with much better display quality. Regarding supply: The price reduction of electronic display modules and the permission of many state agencies in the provinces. The investment to innovate the advertising media owners. On demand: Advertisers are used to running and book electronic screens, along with the pressure of innovation of the companies set for Marketing communications department.  This increase is an opportunity and a key driver for OOH to have more power to compete with other media channels, especially Digital in increasing content transmission, customer access and capabilities. creative use.

Despite these areas, the traffic volume is lower but it is more persuasive (viewers can see the content at close and longer distances). In addition, viewers in these areas are in a state of holding mobile devices on hand, which is an ideal condition for connecting Online and Offline (a concept is gradually becoming widely applied). For example: When you see an interesting content that wants to find out more information, almost no one in the middle of the road stops to pull the phone out to find more information, however if a student is sitting at the bus stop then that ability will be much higher. Especially with the appearance of the Metro Line in Hanoi and Ho Chi Minh City (with the metro stations located all over the route) will have a great impact on this growth.

  The motivation of this growth comes from information technology (QR Code, Internet, Camera identification, sync content online, …) as well as learning from advertising campaigns that have been successful abroad and fast. quickly introduced to Vietnam.

Some industries will increase demand for OOH within the next 5 years e.g. E-commerce & Mobile Application: OOH will be an indispensable channel for e-commerce sites and mobile applications. It can be seen that Lazada, Tiki, Shoppee or Grab are all big players in the outdoor advertising market in Ho Chi Minh City, along with Many forms of outdoor advertising are used simultaneously. This is explained mainly from the connection between Offline and Online. In addition, e-commerce and Mobile Application are the industries that require a lot of trust (consumers still have a lack of trust when transactions via mobile devices), so outdoor advertising is a simple channel near you to increase the trust of brands and services. In part of real estate, Fastfood and Fashion started to participate in recent outdoor advertising as well.