An overview of the advertising industry in Vietnam in 2024

The current situation of the advertising industry in Vietnam

In this ongoing digitalized age, the advertising industry in Vietnam has become a hot commodity. All businesses are allocating their time, effort, and business for successful campaigns to elevate their position on the playing field. To understand how far the industry has come, let’s take a look at all the sectors and their roles in the bigger picture.

What the future holds for each sector of Vietnamese advertising industry in 2024?

The Vietnamese market is seeing robust competition across all fronts, therefore incentivizing businesses to utilize a wide variety of advertising forms in order to acquire valuable leads and enhance their ability to generate effective conversion.

These are the current active sectors of the advertising industry in Vietnam accompanied by a look at how they are performing and their 2024 verdicts.

Out-of-home advertising

Out-of-home advertising, including billboards, transit ads, and outdoor displays, remains a powerful tool for reaching a broad audience. It took a detrimental hit during the epidemic period but has managed to gain back some ground in recent years.

OOH advertising is still going strong after the pandemic

The switch to digital mediums has made this sector take a backseat in the advertising scene. With a projected ad spending of over 87 million USD in 2023, it pales in comparison to the top sectors.

However, a giant billboard strategically placed at advantageous locations can still draw considerable attention. This is why businesses are still willing to invest in OOH advertising, though it is nowhere near the top priority.

Print advertising

Another medium forced to take a step back is print advertising. Unlike OOH advertising, however, print products have lost their ability to stay competitive. Newspapers, magazines, and brochures only enable businesses to target very specific demographics.

Involved in an uphill battle with digital media, print advertising cannot compete with the convenience of the Internet. Standing at only over 28 million USD in ad spending, it is currently in the bottom half of the advertising industry in Vietnam.

The main reason for its lackluster performance is that most newspapers or magazines have a digital version. In the digital realm, businesses can create more engaging advertisements, enhancing the success rate of their marketing campaigns.

Audio advertising

Although radio has been relatively obscured for quite some time, audio advertising still manages to find a second wind. The digital transformation gave birth to a plethora of audio and music streaming platforms, allowing audio advertisements another opportunity.

This new wave of audio advertising is still finding its place in the Vietnamese digital realm. While prominent music platforms like Spotify or Apple Music dominate the market, audio streaming channels are still uncharted territory.

The sector has a total ad spending of over 22 million USD in 2023, which is not a large number. Nonetheless, there is some potential for businesses to reach their designated audience.

For audio advertising, marketers need to pay closer attention to how intrusive their ads are. Make sure the ads are seamlessly integrated between music and podcast sessions to avoid negative user experience.

TV and video advertising

This is the crown jewel of the advertising industry in Vietnam. Standing atop the mountain with over 1 billion dollars of ad spending in 2023, TV and Video advertising accounts for nearly 50% of the market share.

Traditional TV ads trump digital videos, despite the ongoing digital revolution. Broadcast TV is still going very strong, so advertisements here can reach a significant number of viewers, especially during special occasions like sporting events. Furthermore, TV advertisements are unskippable, so the audience is more likely to watch the entire video.

TV and video advertising dominate Vietnam’s advertising industry

On the other hand, digital videos have a place on multiple platforms, increasing their exposure. From social media and websites to digital billboards, these videos can capture the attention of passersby effectively.

Vietnamese consumers are bombarded with information daily, and videos are no exception. This contributes to the astronomical ad spending of the sector, as businesses are constantly improving their efforts to stand out. Additionally, now that TikTok have built itself a stable foundation in the market with short-form videos, every brand is changing their approach in response to the trend.

These videos combat the reduced attention span and allow users to watch anywhere, at any time. They also require less investment than TVC or long-form videos. For those reason, the trend is showing no signs of slowing down as enterprises and small businesses all striving to hop on the engaging trend.

Search advertising

While TV and video advertising capitalizes on entertainment platforms, search advertising occupies the information hub. Vietnamese people, or anyone in the world, have developed a habit of asking search engines any question they may have. Once they enter a query, they can easily encounter an advertisement that answers their exact question.

Search advertising is rapidly making its presence known

Since search advertising is incredibly effective, it can rack up more than 480 million USD in ad spending in 2023, sitting comfortably in second place in the advertising industry in Vietnam.

This sector is especially fitting for enterprises gunning for quicker results than organic methods. Provided that a considerable budget is available, it can easily catapult a business to the top without spending as much time.

Influencer advertising

The pandemic has permanently altered the way Vietnamese people consume digital content. During the lockdown, numerous individuals have taken on the role of influencers by taking advantage of the increased Internet usage. Since then, these people have gathered an active and loyal following, perfect for the advertising industry in Vietnam.

This phenomenon was not overlooked by brands, which allowed influencer marketing to gain significant traction. Collaborations with local social media influencers are common, helping brands connect with target audiences authentically.

The method is still in its infancy, as shown by the 2023 ad spending of 75 million USD. If the worldwide trend persists, influencer marketing will continue its takeover.

Social media advertising

Part of the reason why influencer marketing is enjoying an upward trajectory is the social media boom. With 70% of the population being active users, every business needs to have a social media presence to attract their customers’ attention.

Social media opens a gateway for businesses to approach young audiences

Subsequently, social media advertising may yield 347 million dollars in ad spending in 2023. Facebook, Instagram, YouTube, LinkedIn, etc., are all promising land of opportunities, promoting a great relationship between brands and customers.

Most social media platforms have a built-in advertising system, which provides businesses with a template to devise their strategy. With that being said, everyone wants a piece of the social media pie, and companies are always facing fierce competition. Constant monitoring and improvements are the keys to success on social media.

Digital classifieds advertising

Same as the world, Vietnamese classifieds advertising has transitioned to digital platforms. While they are not as effective as they were, digital classifieds still have a stable seat at the table of the advertising industry in Vietnam.

Digital classifieds advertising is estimated to reach 37 million USD in ad spending in 2023. The number is not large, but significant for certain industries. In Vietnam, most digital classifieds are for real estate, motor, jobs, and general purposes.

This sector requires business to be brief and concise, presenting all information succinctly and straightforwardly.

Digital banner advertising

Lastly, digital banners are another giant in the advertising industry in Vietnam. It is possible to encounter an advertising banner on countless websites and applications. Since they take up a considerable space, users are very likely to notice them.

Due to their effectiveness, digital banners are the choice of many businesses. Its projected ad spending for 2023 is 342 million USD, the fourth highest in the list.

It is important to find the sweet spot between creating an appealing but non-intrusive banner advertisement. Consider the ad placement, design, and information to enhance exposure without compromising user experience.

Future trends of the advertising industry in Vietnam

The aforementioned nine marketing sectors make up a diverse advertising scene in the country. If you look closer, you may be able to spot a few common trends. These are what On Digitals manage to see:

The industry is leaning towards digital advertising for the future

• Social media dominance: The number of social media users in Vietnam will only rise. Businesses need to start making their presence known on these platforms.
• Influencer takeover: The previous years have proved that becoming an influencer is a viable online career option. This will lead to more individuals going down the same road.
• Preference towards visual elements: If TV and video advertising having the lion’s share of the market is anything to go by, then visual elements should be one of the primary options for advertising campaigns.
• The e-commerce boom: Once their advertising efforts have attracted customers, businesses should be ready to handle the e-commerce scene. Many Vietnamese people, specifically the young demographic, have considered e-commerce platforms to be the go-to places to search for their favorite products.
• Localization: People love seeing something familiar and relatable in advertisements. To enter the Vietnamese market seamlessly, businesses should understand the characteristics of Vietnamese culture and incorporate them into their advertisements.
• AI advancements: Many companies in Vietnam have started utilizing AI to enhance their advertising campaigns. This will improve efficiency tremendously, but it is also important to avoid over-reliance on these tools.
• The switch to mobile devices: In line with the worldwide trend, mobile device usage is also increasing in Vietnam. Businesses should consider mobile devices while devising their advertising strategy.

FAQs about the Vietnamese advertising industry

How has the COVID-19 pandemic affected the advertising industry in Vietnam?

The pandemic initially led to a reduction in ad spending but accelerated the shift towards digital advertising as consumers spent more time online. This trend shows no signs of slowing down as the influencer takeover is still going strong, indicating that the digital landscape is only getting more diverse.

Simultaneously, traditional methods are also making their way back, signaling a very fruitful era for the advertising industry in Vietnam.

The pandemic has altered the development of Vietnam’s advertising industry

Are there advertising regulations in Vietnam?

Yes, Vietnam has regulations governing advertising content and practices to ensure transparency and consumer protection. Furthermore, there are many restrictions that businesses should keep in mind to avoid penalties.

Check out the detailed rules and regulations of the advertising industry in Vietnam here.

Read more: Other advantages of doing business in Vietnam aside from the budding advertising industry.

Final thoughts

The advertising industry in Vietnam is dynamic and evolving. Businesses must adapt to the changing landscape and leverage emerging trends to create effective marketing campaigns.

If you are aiming to make a significant impact in Vietnam’s advertising arena, contact On Digitals today for marketing solutions tailored to your distinctive needs and customers’ preferences. Our PPC, social media, and KOL marketing services can help elevate your brand to new heights.