Vietnam is undergoing significant transformations in 2023, due to many drastic changes in the country’s market and economy. Driven by both traditional and digital advertising mediums, businesses are vying for a stable position in the crowded market. This article provides a complete run-down of the advertising industry in Vietnam, highlighting key sectors and emerging trends.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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 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.
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.
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.
