Nowadays, in the fast-changing economic world where there is a proliferation of businesses, being noticed and mesmerized by consumers is all that a brand needs. Every year, corporations spend enormous budgets on advertising to promote their products in order to persuade Vietnamese consumers.
In this article, we will discuss Vietnam’s digital advertising industry, alongside the tips foreign advertisers need to know to maximize the budget.
I. AN OVERVIEW OF THE ADVERTISING INDUSTRY IN VIETNAM
According to data from Statista as of October 2022, the total revenue of the advertising market in Vietnam is expected to reach 2,192 billion USD in 2022, representing a 12.7% increase compared to 2021. The largest segment of the market is TV and video advertising with an estimated market volume of 1.19 billion USD.
So, overall, with the revenue mentioned above, Vietnam’s advertising market is still much smaller compared to the leading market, the United States (less than 1/167th of its size).
Within the Southeast Asia region, Vietnam’s advertising industry ranks fifth, following countries like Indonesia, Thailand, Singapore, and the Philippines. However, in terms of growth rate in 2022, Vietnam ranks second, just behind Malaysia.
|Regions||Revenue forecast 2022 (billion USD)||Revenue Forecast 2022 (billion USD)|
Statista forecasts that by the year 2027, digital advertising will dominate the total revenue in the market, accounting for approximately 62% of the market share. Additionally, about 83% of digital advertising revenue will be generated through programmatic advertising. This indicates a significant shift towards digital advertising and automated ad formats in the coming years.
II. DIFFERENT MEANS OF ADVERTISING
1. Print Ads
Print Ads (advertisements in newspapers and magazines) are the traditional Marketing channel of the advertising industry, dating back to a time before radio and TV existed. When reading newspapers or magazines, you can easily come across pages of advertisements for various products and services.
The media is the channel with the clearest customer segmentation. They often have specialized content targeting specific groups of readers with shared interests. Most readers choose the newspapers and magazines they love to read. For example, children prefer reading Nhi đồng newspaper, while women enjoy reading Mẹ và Bé newspaper, which focuses on beauty and lifestyle, and businesspeople prefer reading newspapers like Doanh nhân Sài Gòn, or báo Kinh tế (Economic Newspaper).
However, “The reader only selects the newspapers they like” is the most significant difference between Print Ads and other media channels. So, the disadvantage of advertising is that it can restrict users and create a feeling of boredom for them.
2. Social Media Advertising
Nowadays, social media is no longer a foreign concept in Vietnam, especially among young people and those living in major cities.
Key players in Vietnam’s digital ads market
The three most used social networking platforms in Vietnam today include Facebook, Zalo, and Facebook Messenger.
- Facebook: dominates the digital media market in Vietnam, Data from Kepios shows that only 5 percent of companies surveyed do not use or have not used Facebook as a digital communications channel. In particular, many firms spend more than 50 percent of their digital spending on Facebook alone, even though alternative channels might be more effective.
- Youtube: each Vietnamese person spends an average of more than 1-hour watching videos on Youtube every day. In Vietnam, reality TV shows, lifestyle, and product reviews are the most popular Using key opinion leaders (KOLs) to promote products is also popular in Vietnam, Businesses can reach up to 63.4 percent of internet users in Vietnam by using KOLs along with other forms of digital advertising available on Youtube.
- Zalo: Zalo offers basic chat features, entertainment, news, and other services such as paying electricity bills and booking appointments. The network has over 62 million monthly active users between the ages of 38 and 34. By allowing brands to set up official accounts, Zala has created a digital ecosystem that favors e-commerce, local community building, and timely customer service. Several multinational companies have set up their official Zalo accounts to access the Vietnamese market and connect with local customers.
With an immensely large number of users on social media platforms, it becomes a lucrative opportunity for businesses. Many target customer groups for various businesses are active on social media, and their online presence and usage frequency on these platforms are relatively high. Therefore, foreign businesses seeking to attract potential customers in Vietnam and promote their brand image should not overlook the advertising potential of social media.
a) Types of Facebook Ads
Running Facebook Ads has three basic formats that you can consider:
- Facebook Ads – Right Column Ad
This ad type will be displayed in the right column of the Newsfeed and includes a maximum of 25 characters for the headline, 90 characters for a short description, and an engaging image with dimensions of 100×72 pixels.
The destination of Facebook Ads can be your fan page, website, or any other URL you desire. When creating these ads, your goal should be to drive clicks from customers with just one small illustrative image and a concise introduction.
To run the most effective Facebook Ads, you should conduct experiments with different content and images to arrive at a final decision that truly resonates with your Vietnamese customer’s preferences.
- Sponsored Stories
Sponsored Stories can be displayed on the News Feeds or the right column of Facebook. If you pay close attention, you will notice that all Sponsored Stories are presented in the format of ‘Someone has Liked…’ (highlighted in the red portion in the image below).
Now, ask yourself, ‘If you see someone Like a post from a certain Fan Page on Facebook, would you be curious enough to click and see what it’s about?’
Sponsored Stories are an incredibly effective way to generate word-of-mouth effects and influence your target audience.
- Post Suggestion Ads
This form of advertising on Facebook called ‘Post Engagement Ads,’ is only displayed on the Newsfeed. It includes one image and text automatically taken from a post within the fan page.
b) Running Zalo Ads
Zalo – the social media platform is not unfamiliar to users in Vietnam, Though it may not be as globally prominent as Facebook, it is still considered one of the developing social networks widely used in Vietnam, not only by the youth but also by various age groups.
Initially, Zalo was mostly known for its online messaging feature, but over time, it has upgraded and expanded with various functions, such as creating individual online stores, and offering advertising services for businesses to promote their brands, products, etc., to potential users.
Zalo Ads is a paid advertising form that supports advertisers in creating campaigns to reach a large number of Zalo users. You can set up and optimize your ads on both Zalo Network and Zalo App.
Zalo Official Account Advertising is a type of ad that introduces a business’s official account to all Zalo users. The purpose of this advertising is to increase interest and followers for the Official Account.
According to GMA’s own observation, the diversity of ad content and the analytics available in Zalo’s reports are not as extensive as Facebook’s, which can limit businesses in analyzing the effectiveness of their advertising on the Zalo platform. However, the suitability of Zalo as an advertising channel depends on the specific business field and the potential target audience.
c) Instagram Ads
Running Instagram Ads is a form of advertising that utilizes images, short videos, stories, and links to a company’s website or stores, posted on the Instagram feed to promote products, and brands, increase sales, and more.
An Instagram ad post will be accompanied by the label ‘Sponsor’. Typically, the appropriate target audience is young Vietnamese users aged between 15 and 25, as they are the group that uses Instagram more frequently.
The advertising formats on Instagram that you often come across are:
- Image Ads: Instagram Image Ads are the most common type of advertising, using eye-catching images of products to attract customers’ attention. The advantage of this type of Instagram Ad is the variety of Call to Action buttons, such as Learn More, Shop Now, Download Now, Buy Now, Sign Up, etc. You can use only one image in this type of ad.
- Video Ads: If you have run FB Ads, you probably know the power of video. A close-up video of the product or focusing on prominent details is the fastest way to establish a professional image for your brand. Instagram Video Ads help customers have a more visual understanding of the product, engaging users for a longer time compared to a simple image.
- Carousel Ads: This type of ad is similar to Image Ads but upgraded. Instagram Carousel Ads allow businesses to use multiple images for advertising. This is effective for promoting products with various models or arousing customer curiosity. The Call to Action button in Instagram Carousel Ads is similar to Image Ads, but the “Learn more” button stands out, providing a direct link to the personal page on Instagram.
- Stories Ads: The advantage of Instagram Stories Ads lies in the ease of sharing with interested viewers through a few simple steps. Additionally, the creator can add effects, stickers, and dynamic images to enhance the uniqueness of the ads.
d) Youtube Ads
Running YouTube ads is a type of advertising where when customers are watching a certain video on YouTube, they will see your advertisement. This ad can appear in various formats such as images, videos, banners, text, etc., and it is also considered a form of advertising by Google.
e) Tiktok Ads
This is a form of using the TikTok social media platform to carry out marketing and advertising campaigns with the aim of expanding the brand or driving sales. With its feature of sharing short videos, a vast library of copyrighted music, and a plethora of unique effects, TikTok allows users to unleash their creativity. This enables product videos and advertisements on TikTok to be quickly transmitted.
Short videos are well-suited to the way Vietnamese consumers consume information. As a result, customers interested in the products will seek out your desired sales page, which can be a website or a storefront on other e-commerce platforms.
f) Tips To Run Ads Effectively on Social Media Platforms
- Choose the right target customer audience
For any product, it is essential to identify the customer segments to plan product marketing effectively. Moreover, given Facebook’s vast user base, selecting the right potential customers becomes an advantage.
This approach also helps you save a significant portion of advertising costs by reaching out to a specific audience rather than a broad group, thus increasing the revenue’s effectiveness.
- Delivering quality content
An indispensable element when advertising products to consumers is the content.
The content presented in your posts must showcase creativity and novelty. Facebook prioritizes displaying ads that meet this criterion, with constantly updated and distinctive images from the seller.
The wording in the posts must strike a chord with the psychology of potential buyers, evoking associations and excitement. You should stay updated on the latest trends to create high-quality and innovative content.
- Using eye-catching images
A crucial factor in grabbing customers’ attention to the product you are advertising is using beautiful and appealing images that attract users.
Invest in designing advertisement images that are clear, captivating, and highlight the product. Refer to various templates to choose harmonious colors, trendy decoration styles, and elements that arouse curiosity and attention from users.
You can also use short video clips to provide detailed descriptions so that customers can easily visualize the product.
- Advertising in a natural way
Several surveys have shown that users feel uncomfortable when ads aggressively try to persuade them to purchase a product. Therefore, an effective advertisement is one that makes customers discover their needs in the product you offer.
Help customers see what values they will gain when using that product. This will turn their buying intention into a desire and a genuine need to own the product.
3. SEM & Google Ads
In today’s digital age, where the Internet is an endless treasure trove, we use the Internet in many roles, from entertainment to work and education. Whenever we want to learn about a certain topic or have difficult questions that need answers, we turn to the internet to search for information and solutions.
According to surveys, websites appearing on the first page of search results are more likely to be viewed. Therefore, the higher the position in search results, the greater the website’s traffic will be.
Search engines such as Google, Cốc Cốc, and others employ complex algorithms to select trustworthy websites and rank them at the top. This is how they keep users satisfied and engaged, encouraging users to return to their search engines.
According to a Google statistic, appearing both in the advertising section and organic search results can increase website clicks by 50%.
Therefore, Search Engine Marketing (SEM) is crucial if you want your website to appear in the top suggestions of search engine result pages. With increased website traffic, you can also enhance brand awareness, brand identity, and much more.
What are the advantages of SEM?
- Increased website traffic: This is the most significant advantage of SEM. With a well-executed search engine marketing strategy, the number of clicks to your website can increase rapidly and sustainably.
- SERP visibility: As mentioned above, your website will also appear more frequently on search engine result pages. The higher and more frequent the displays, the higher the credibility of your website.
- Brand recognition: SEM is an extension of digital marketing, offering more promising prospects for online purchases and services compared to traditional marketing. As a result, your brand can build a loyal customer base and establish brand identity.
- Predictability: By allocating a specific budget, search engine tools can predict how many clicks you will receive for your website. This allows you to estimate potential customers through your conversion rate.
Disadvantages: What are some considerations for SEM marketing?
- High costs: Depending on your business’s scale, marketers may spend a considerable amount on keywords to attract internet users to your business advertisements. The more clicks you get, the more money you need to spend. You can use the following formula to estimate the cost: Total amount paid = Number of clicks x Cost per click.
- Competition and oversaturation: There is an abundance of ads appearing all over the internet, and not all of them provide a good viewing experience for users. SEM marketing can be easily confused with other types of ads in this crowded landscape.
The steps to create an effective SEM strategy are not complicated.
- Perform keyword research: Search for keywords related to your business that are relevant and have the right direction.
- Open Google Ads and create a campaign.
- Choose the most suitable keywords.
- Create an ad to appear on SERP (Search Engine Results Page).
- Select a bidding strategy and pay for each click you receive.
4. Advertisements On Television
The effectiveness of advertising on television is undeniable. It allows businesses to visually and quickly promote their brand, products, and services to customers. However, nowadays, there are various forms of television advertising that may leave you wondering which one will help convey your message and target the right audience most effectively.
a) Television Advertising with Logo
Among the various forms of television advertising, advertising with logos allows you to place your business logo on the TV set during television programs or insert the business logo in the corners of the screen when broadcasting TV shows, as illustrated in the image below.
b) Television advertising with scrolling text, panel
Scrolling text, panel, when broadcasting television programs, is one of the simplest and most common forms of television advertising today. With this format, the advertising message of the business will run below the TV screen while broadcasting television programs
c) Television advertising with TVC (Television Commercial)
When it comes to the most effective forms of television advertising today, TVC advertising is considered the most effective. Each TVC advertisement typically lasts for several seconds, allowing businesses to convey their message effectively through both visuals and audio.
Usually, these TVC advertisements are aired before, after, or in between two programs or within a single program.
The effectiveness of TVC advertising on television is quite high, but the cost is also not cheap. Therefore, if you have a limited budget, you should carefully consider before deciding to use this advertising method.”
Besides the fact that repeating advertisements on TV helps embed the brand name and message deeply into the audience’s memory, TV advertising also has significant drawbacks.
Unlike other traditional media, TV advertising is the most cost-intensive medium. To produce a TV commercial, you need to go through various processes, including hiring scriptwriters, actors, editors, set designers, or hiring an advertising agency, and that’s just the beginning. You have to pay for airtime, and research shows that TV ads are most effective when broadcasted repeatedly. To achieve multiple airings of your ad, TV stations with high broadcast rates will make your business carefully consider budget balancing. The cost for a 30-second TVC on a national TV station in Vietnam can be up to 200 million VND.
5. Advertisements On Billboards and Banners
Billboards are often placed along major roads and highways, making them visible to many consumers throughout the day.
Billboards are also effective in capturing the attention of the target audience. These individuals often travel the same routes every day. Therefore, seeing an advertising billboard repeatedly contributes to making consumers remember your product and brand for a longer period
NEvertheless, one of the drawbacks of using billboard advertising is the cost. This includes the expenses from the setup to the takedown of the billboards, as well as the contract with the space owner. Additionally, there are other costs such as maintenance and repairs. If there is any damage, you may need to incur additional expenses.
Another disadvantage of billboards is that they can pose risks on the road. Since billboards are designed to capture the attention of drivers or passersby, it may cause them to become distracted. This could potentially lead to traffic accidents. However, this is a relatively small concern, and it is unlikely to happen as most people only glance at billboards for a few seconds.
6. Advertising on LCD Screens and Elevator Frame
Lcd, Frame advertising (elevator advertising) can be simply understood as advertising on screens inside or outside elevators in high-rise buildings, including office buildings, skyscrapers, condominiums, and shopping centers.
This form of indoor advertising is similar to TV advertising but appears in front of customers as they step out of their living spaces, essentially falling under outdoor advertising.
This advertising format first appeared in 2007 in two major cities, Hanoi and Ho Chi Minh City. With rapid and strong development, it has now spread to many provinces and cities across the country, becoming so popular that wherever there is a high-rise building, you are sure to find Lcd, Frame advertising.
The choice of display frequency for posters is closely related to the budget. Within the same Frame, there will not only be advertisements from a single brand, but also a rotation of various brands’ ads.
The coverage and display frequency of advertisements depend heavily on the budget. There is an important consideration for businesses: when operating on a tight budget, if you choose to run a high frequency but with fewer Frames, it might be more beneficial to opt for a lower frequency but across multiple Frames over a longer period. This is because many providers often offer favorable time slots and running policies to their customers.
Here are 6 popular advertising channels nowadays. Hopefully, with the knowledge shared by GMA, it partially helps foreign brands to have an overview of these advertising channels and understand the advantages and disadvantages of each type. This enables businesses to make suitable choices and build effective advertising strategies to reach the right target audience and enhance business effectiveness.
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