Vietnam’s online advertising revenue remains modest

The Vietnam Advertising Association (VAA) has said advertising revenue from the internet-based sources still makes up a small fraction in Vietnam’s advertising industry although online trade has recorded remarkable growth in recent years.
VAA vice president Do Kim Dung said online advertising revenue was put at only 480 billion dong (around US$23 million) last year and this amount was poorly compared to some 20 trillion dong (about US$960 million) for the whole industry.

The advertising sector is expected to achieve a year-on-year revenue rise of some 15% this year but the online advertising segment would likely grow 20%, Dung told the Daily on the phone on Monday after Nielsen released findings of its latest survey on the influence of online advertisements on consumers in Southeast Asia (SEA).

The global information and measurement firm’s survey found that consumers in the region were highly impacted by online advertising, particularly if the content was specifically targeted or if their friends had also engaged with the product or brand.

According to the survey, up to 95% of consumers in Vietnam are ‘highly’ or ‘somewhat’ influenced by standard website advertisements on social media sites, the highest among nations in the region and much higher than the average regional percentage of 73%.

David Webb of Nielsen commented in the survey report that SEA consumers’ trust in and attitudes towards online advertisements provided opportunities for companies to engage with their target audience.

“As social media increasingly becomes a mainstream activity throughout the region, brands have been quick to ‘get on board’ with the practice of better understanding and connecting with their consumers when it comes to their advertising strategies, engagement and conversion,” Webb said.

The Nielsen study showed that 79% of Vietnamese consumers have ever ‘liked’ or followed a brand or company on social networking sites, and this percentage is significantly higher than the global average of 52% and 69% in the SEA.
Saigon Times Daily

Tags: Vietnam Online advertising