The recent report from Statista in 2018 brings us in-depth information about the digital marketing industry in Vietnam. Please read our report analytic or download the full report here.
Digital Marketing is a response tool for small and medium-sized businesses in the context of the pandemic to face these difficulties, the marketing solution that businesses have applied broadly in recent times is to switch from marketing to digital Offline to Online Marketing, and Digital Marketing is approached from the perspective of digital communication. The recent report from Statista in 2018 brings us in-depth information about the digital marketing industry in Vietnam. Please read our report analytic or download the full report here.
Over the past two years, the Covid-19 pandemic has caused severe impacts on the world economy in general and Vietnam in particular, especially in the business sector of enterprises. In that context, small and medium enterprises have to face more difficulties and find ways to overcome the situation of production and business stagnation. One tool businesses use as an effective weapon is digital marketing (Digital Marketing) marketing activities through the Internet.
Distancing methods due to the pandemic made businesses not hesitate to spend money for digital advertising highlights, including Facebook, Google ads, and other eCommerce platforms, to reach online customers. According to the Statista report, Vietnam's total media advertising expenditure will increase steadily from 2018 to 2021, from 1.2 billion US dollars spent in 2018 to 1.38 billion US dollars media advertising expenditure in Vietnam in 2021.
The growth of total media advertising expenditure in Vietnam as of September 2018 was 6% and forecasted to decrease for the following years and has the growth of 3.5% in 2022.
In general, the digital advertising expenditure in Vietnam increased steadily from 2015 to 2020. In 2019, the digital ad spending in Vietnam reached 294.2 million US dollars, accounting for 23.35% of the total media advertising expenditure. This number in 2020 was 323.6 million US dollars, accounting for 25.68% of the total media advertising expenditure.
In Vietnam, popular digital platforms recently include websites; social media; digital ads (Facebook Ads and Google Ads); search engines (SEM and SEO); Email Marketing; mobile & games, App.
In the popular digital platforms, websites are the core and important foundation in Digital Marketing because it is the business's house online. Chrome is the most usable in Vietnam, followed by Safari and Coccoc. The share of browsers in 2020 are as follows: Chrome (66.72%); Coccoc (13.18%); Safari (10.68%).
In average, Vietnamese people spend their time to visit a website 322.7 minutes for Social Media, 204 minutes for Services and 155.5 minutes for News/information. People in Vietnam access the website for news/formation accounting for 97%, services 93.3%, entertainment 83.3%, social media 75.3%, media 68.5%, retail 54.5%, downloads (48.5%), email (44.8%), games (44.7%) and entertainment - music (41.5%).
The mobile ecosystem continues to multiply, covering many different products and services, including smartphones, mobile subscriptions, mobile display advertising, smartphone advertising budgets, video. This explains the increased mobile advertising expenditure in Vietnam from 2018 to 2021. According to the report, the mobile ads spending in Vietnam in 2018 was 136.1 million US dollars and increased to 227.4 million US dollars in 2020.
Thanks to the high penetration of smartphones in both urban (>80%) and rural areas (>60%) and the popularity of 4G networks since the beginning of 2017 (currently has about 3.5 million users and promises to expected to continue to grow), users have the opportunity to access more rich content on mobile devices. The advertising on mobile devices then increases from 2018 to 2021.
Advertising on mobile applications accounts for 57%, higher than its mobile website advertising, accounting for 43% of advertising inventory in 2020.
Online video advertising is an innovative form of advertising that overcomes one of the most significant barriers of mobile marketing that uses images, sound, and motion to tell a brand story across a variety of screen sizes. Furthermore, video advertising creates a rich, vibrant ad format that works on any mobile device.
The most popular video properties in Vietnam as of May 2019 was as follow: Google site (13.68 millions unique visitors); Facebook (10.01 millions unique visitors); Broadband TV (8.96 millions); UPROXX (4.53 millions); VEVO (2.89 millions); Admicro - VCCorp (2.37 millions); 24h Online Advertising JSC (2.16 millions); ZEFR (2.04 millions); Adtima - VNG Corporation (2.01 millions); Fullscreen Video Network (1.77 millions).
71% of internet users in Vietnam watch online videos daily, 22% of internet users watch videos every week, 3% watch videos every month, 1% less than a month, and 2% never watch videos online. On average, 42% of respondents said they spent 2 hours on video streaming services, 23% spent 1 hour, 17% spent 3 hours, 10% spent 4 hours, and 7% spent 30 minutes on video streaming services in 2020.
Vietnamese businesses focus on social network activities the most in digital marketing activities. This was explained by the social network user penetration increasing rapidly and fastly from 46% in 2017 to 51% in 2021.
Facebook and Zalo are the 2 most popular media that most businesses use. 95% of respondents shared that Facebook is the most well-known platform, while Zalo accounts for 86%. The next platforms are Youtube (80%), Instagram (43%); Tiktok (37%); Pinterest (19%); Twitter (17%); Linkedin (6%); Gappo (3%); Lotus (2%).
Male from 25 to 34 years old are the primary audience for Facebook, Instagram, and Facebook Messenger, accounting for 18% of the total audience; females aged from 25 to 34 years old accounting for 16.5% of the total audience. The following is male and females aged from 18 to 24 years with around 13% of the total audience.
YouTube and Facebook are the two most popular channels for providing online videos. While YouTube is more famous for posting new content, Facebook is used with more paid ads to reach the target audience effectively. Online video is one of Vietnam's most popular digital marketing activities, with a 9.86% average engagement rate as of January 2020. The following post engagement rates include photo posts accounting for 4.29%, link posts 4.28%, status posts 1.17%.
Vietnamese audiences follow brands on Facebook mainly to receive promotion or campaign information (72%); to receive a new product or service updates (66%); they like the brand (50%); by brand's helpful post information (38%); by brand's posts are good (36%); by brand's posts have nice photos (26%); by brand uses their favorite celebrities (19%).
24% people clicking on Facebook ads by mistake
The report also reveals the main reasons that make audiences for clicking on Facebook online advertisements are as follow: products match their interest (45%); the advertisements look impressive (40%); the advertisement looks funny (30%); I have to see the ads to see my favourite content (28%); they like the brand (28%); the advertisement has a good promotion (27%) and by mistake (24%).
The pandemic has been and continues to be complicated and brings many challenges to businesses worldwide and Vietnamese SMEs. In addition, customers' consumption habits and shopping behaviour will continue to change in approaching online shopping channels to limit travel and contact in the community. This promotes the development of Online Marketing, especially Digital Advertising, to reach more target customers. Next, you can see Vietnam Internet Usage Report 2020-2025 gathered by Market Report IO.
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