Online advertising heats up

With increasingiInternet use alongside consistent IT development, online advertising is on rise in Viet Nam.

By June this year the number of Internet users in Viet Nam had reached 24.6 million, up 12.7 per cent compared to the same period last year. Meanwhile, the number of people using the broadband internet also grew by 24 per cent to over 3.34 million subscribers.

These figures are really attractive conditions for the domestic online advertising industry to develop.

However, its development is still at the primary stage in Viet Nam, experts say, adding it has great potential to go much further.

The market would not be well developed until 2012, and it would achieve stable development in 2015, they predict.

At present, the country’s spending on online advertising accounts for only 0.4 per cent of the total ad expenditure. Per capita expenditure on online advertising in Viet Nam is estimated at just $0.5 oer year, much lower than $10 in China and $14.5 in Russia.

Consequently, the online advertising industry earned revenues of just $15.5 million in 2009, according to the Cimgio Market Research Company.

The main reason for slow development of the online advertising industry is a lack of tools that can be used to effectively measure the impact of online advertising campaigns.

This means enterprises lack information on benefits that online advertising can bring.

Local consumer habits and the opening of many websites are other inhibiting factors.

At present, most enterprises prefer putting their banners and logos on popular websites to using text advertising while the latter can create more benefits for advertisers.

According to AC Nielsen – the US-based global marketing research firm, banner advertising accounts for up to 80 per cent of online advertising market now.

The opening of many websites at present has also left enterprises confused about the right online site to advertise their products and services. Experts however believe that text advertising in Viet Nam will catch up with banner advertising in four or five years. — VNS

Tags: Vietnam Online advertising