Welcome to our comprehensive report on Vietnam’s digital advertising landscape from 2018 to 2022. In response to the challenges posed by the pandemic, businesses in Vietnam have increasingly turned to digital marketing as an effective tool to overcome stagnation and reach online customers. In this report, based on insights from Statista, we will explore the growth and trends in digital advertising expenditure, including search advertising, mobile advertising, online video advertising, and social media advertising. Read on to gain valuable insights into Vietnam’s digital marketing landscape and discover opportunities for your business.
I. Overview:
The Covid-19 pandemic has had a significant impact on Vietnam’s economy, leading businesses to face various challenges. In response, small and medium-sized enterprises have turned to digital marketing as a viable solution. According to the Statista report, Vietnam’s total media advertising expenditure is projected to steadily increase, reaching $1.38 billion in 2021. While there was a growth rate of 6% in total media advertising expenditure in 2018, subsequent years have shown a decline, with a growth rate of 3.5% anticipated in 2022. Notably, digital advertising expenditure in Vietnam has been on a consistent rise, accounting for 25.68% of total media advertising expenditure in 2020.
II. Search Advertising:
Digital platforms such as websites, social media, digital ads (Facebook Ads and Google Ads), search engines (SEM and SEO), Email Marketing, mobile apps, and games are popular in Vietnam. Websites serve as the foundation for digital marketing in the country, with Chrome being the most widely used browser, followed by Safari and Coccoc. Vietnamese individuals spend an average of 322.7 minutes on social media, 204 minutes on services, and 155.5 minutes on news and information websites. The top website categories in Vietnam include news/information, services, entertainment, social media, media, retail, downloads, email, games, and entertainment/music.
III. Mobile Advertising:
Vietnam’s mobile ecosystem has experienced significant growth, driven by high smartphone penetration in both urban and rural areas, as well as the popularity of 4G networks. Mobile advertising expenditure in Vietnam has seen a steady increase, rising from $136.1 million in 2018 to $227.4 million in 2020. Mobile applications constitute 57% of advertising inventory, surpassing mobile website advertising, which accounts for 43% in 2020.
IV. Online Video Advertising:
Online video advertising provides an innovative and engaging means of reaching audiences, particularly on mobile devices. Popular video properties in Vietnam include Google site, Facebook, Broadband TV, UPROXX, VEVO, Admicro-VCCorp, 24h Online Advertising JSC, ZEFR, Adtima-VNG Corporation, and Fullscreen Video Network. Approximately 71% of internet users in Vietnam watch online videos daily, with an average engagement rate of 9.86% as of January 2020.
V. Social Media Advertising:
Social media platforms play a crucial role in the digital marketing activities of Vietnamese businesses. Facebook and Zalo are the most popular platforms, followed by YouTube, Instagram, TikTok, Pinterest, Twitter, LinkedIn, Gappo, and Lotus. The primary audience on Facebook, Instagram, and Facebook Messenger consists of males aged 25-34, followed by females in the same age group. Vietnamese audiences follow brands on Facebook primarily to receive promotional information, updates on new products or services, and engaging posts. Relevance to their interests, impressive visuals, humor, and promotions are among the factors that influence users to click on Facebook ads.
In conclusion, the pandemic has presented a myriad of challenges for businesses, including SMEs in Vietnam. As customers increasingly turn to online shopping channels to limit travel and physical contact, the significance of online marketing, particularly digital advertising, cannot be overstated. This shift in consumer behavior underscores the need for businesses to embrace digital strategies that effectively target and engage with their desired audience. By capitalizing on the opportunities afforded by digital advertising and continuously adapting to changing market dynamics, businesses can position themselves for success in the evolving landscape of online marketing.
Key Points Summary:
- Vietnam’s digital advertising expenditure has been steadily increasing, reaching 25.68% of total media advertising expenditure in 2020.
- Websites, social media, digital ads, search engines, and mobile apps are popular digital platforms in Vietnam.
- Mobile advertising expenditure has seen significant growth due to high smartphone penetration and 4G network popularity.
- Online video advertising provides a rich and engaging format for reaching audiences on mobile devices.
- Social media platforms like Facebook and Zalo are essential for businesses in Vietnam, with strong user penetration.
- Vietnamese audiences follow brands on social media primarily for promotions, updates, and engaging content.
- Relevance, visual appeal, and promotions are key factors that influence users to click on Facebook ads.
Contact our Vietnam team for expert support and guidance in navigating the dynamic digital advertising landscape in Vietnam.