Ad revenues may exceed $3 billion yearly by 2020

Vietnamese firms are spending more and more on advertising to establish their brand images.

The Advertising Association (VAA) says that advertising revenues are growing by 30 to 35 percent each year and are on track to top three billion dollars annually by 2020.

VAA Deputy Chairman Do Kim Dung told Thoi bao Kinh te Saigon that estimated total revenue from all advertising channels in Vietnam in 2009 was one billion dollars.

Even in 2009, when enterprises had to cut back budgets for ads due to the economic difficulties, total advertising grew by nearly 20 percent.

Dung believes that revenue will continue to grow because companies need to advertise for their products and services in order to boost sales in the context of stiff competition.

Spending growth is most notable in new advertising channels like billboards and ads at supermarkets, department stores or shopping malls, and somewhat slower in traditional channels such as TV, print newspaper or radio.

“Big corporations in Vietnam have increased their budget for ads at sales points, hoping to motivate persuade consumers to buy products whose names they already recognize through TV advertisement,” Dung said.

Dung noted that overall ad revenue of one billion dollars is quite small for a nation of 87 million people, or if compared with Thailand, Singapore and Indonesia. Advertising revenue of those countries is several times higher per capital.

Tags: Vietnam ads