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Vietnam Digital Advertising Report (2019, trends for 2020)

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• ADSOTA’S VIETNAM DIGITAL ADVERTISING REPORT 2020
ADSOTA officially released Vietnam Digital Advertising 2020 report, updated with the latest figures and trends on the online advertising market in Vietnam; Specialized figures are aggregated and statistical throughout 2019 and forecast for 2020.
We are very pleased to share this report with you believing that the above information will help Marketers and Businesses have an overview of Digital in Vietnam, dig into users’ behavior and shape the latest trends, which will help you ready to welcome 2020 with more effective and successful campaigns.

ABOUT ADSOTA:
• An advertising company under Appota Group.
• The first & only Facebook gaming agency in Vietnam
• Joint venture partner of TNK Factory (of Kakao Group)
• Facebook Gaming Creator Program’s MCN in Vietnam
• Member of Mobile Marketing Association (MMA)

• Third Party Accreditation:
- Google's Fastest Revenue Growth Channel Partner in SEA
- Top 1 Facebook Ads Team For Game/App In APAC.
- Top 10 SMB Partner Of Google Network
- Top Non-gaming Media Source 2016 (By Appsflyer)
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• BÁO CÁO VỀ THỊ TRƯỜNG QUẢNG CÁO TRỰC TUYẾN VIỆT NAM 2020
ADSOTA chính thức phát hành báo cáo Vietnam Digital Advertising 2020, cập nhật những số liệu và xu hướng mới nhất về thị trường quảng cáo trực tuyến tại Việt Nam; các số liệu chuyên ngành được tổng hợp và thống kê xuyên suốt năm 2019 và dự đoán xu hướng cho năm 2020.
Tin rằng, những thông tin trên sẽ giúp các Marketer và các Doanh nghiệp có cái nhìn bao quát về Digital tại Việt Nam, hiểu được hành vi người dùng và định hình những xu hướng mới nhất trong tương lai, sẵn sàng đón đầu năm 2020 với những chiến dịch hiệu quả và thành công hơn.

GIỚI THIỆU - ADSOTA là:
• Adsota là công ty con thuộc Appota Group
• Agency quảng cáo của Facebook trong mảng Game đầu tiên và duy nhất tại Việt Nam
• Đối tác liên doanh của TNK Factory (thuộc tập đoàn Kakao) - Hàn Quốc
• Đối tác triển khai chương trình Gaming Creator duy nhất của Facebook tại Việt Nam
• Thành viên Hiệp Hội Mobile Marketing

• Thành tích nổi bật:
- Đơn vị chạy quảng cáo Game/App hàng đầu APAC do Facebook xếp hạng
- Đối tác của Google có doanh thu tăng trưởng nhanh nhất KV Đông Nam Á
- Top 10 đối tác SMB của Google Network
- Kênh quảng cáo hàng đầu cho app ngoài Game do Appsflyer bình chọn
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Website: http://adsota.com
Business inquiries: sale@adsota.com
Hotline: (+84) 911 983 189

Published in: Marketing

Vietnam Digital Advertising Report (2019, trends for 2020)

  1. 1. 2019 REPORT Vietnam Digital Ads
  2. 2. TABLEOFCONTENTS SUMMARY 03 04 15 30 42 01. VIETNAM DIGITAL AND MOBILE MARKET OVERVIEW 02. VIETNAM DIGITAL ADVERTISING MARKET 03. VIETNAMESE USERS’ BEHAVIOUR ON DIGITAL PLATFORMS DIGITAL ADVERTISING TRENDS PREDICTION IN 2020
  3. 3. SUMMARY Adsota Team, 2019 is the year that marks the steady growth of the advertising industry in general and digital advertising, in particular. User’s behavior and shopping activities on online platforms over the past few years has been significantly influenced by the raise of new touchpoint. The emergence of various smartphone models such as Realme, Oppo and Samsung with affordable prices has led to a soar in the number of mobile users in Vietnam. In a society that gradually switches its aim to integrating everything in one mobile device including fintech and e-commerce, marketers has regarded mobile as an indispensable channel in their digital campaigns. This thriving trend marks the rise of new mobile- friendly content formats such as vertical video, short video, together with the "explosion" of Tik Tok. All the above trends will be reviewed through vividly visualized data and numbers from Adsota's Vietnam Digital Advertising Report 2019. The report will provide you with the most noticeable insights and trends in digital advertising throughout the whole year of 2019. We hope that with all the contents that Adsota has summarized in this report, digital marketers will gain useful information and be ready to grasp the newest trends of the year 2020 with a lot of more efficient and high targeted advertising campaigns. Happy reading!
  4. 4. 01 VIETNAM 01DIGITAL AND MOBILE MARKET OVERVIEW
  5. 5. VIETNAM’S DIGITAL OVERVIEW 97M Dân số 50.1% Nam giới 49.9% Nữ giới 32.6 Độ tuổi trung bình 36% Dân số thành thị 145.8M Số thuê bao di động Source: We Are Social (2020) 97M Population 50.1% 36% Male 49.9% 32.6 145.8M Female Average Age Urban population Number of mobile subscribers
  6. 6. VIETNAM’S DIGITAL OVERVIEW Source: We Are Social (2020) 70% (68.0M) 67% (65.0M) 59.8% (58.0M) 97% 72% 13% 1% Since 1997, when Vietnamese people were exposed to the Internet, the country has witnessed the fastest growth in the number of Internet users in the region and the world. The number of Inter- net users reached 68 million (70% of the popula- tion) in 2019. Internet connection in Vietnam is currently among the best and most stable in South- east Asia. Social network platform is also on the rise recently. In 2019, the increase in social network users is by 9.6% (with 5.7 million new users), ranked 6th worldwide. This impetus gave Vietnamese people a better approach to additional digital and entertainment content. The Growing Trend Of Internet And Social Network Users In Vietnam In 2019 Adult Users Of Smart Devices (Survey-based) Social Network Users Mobile phone (All types) Smartphone Wearable Smart Device Tablet Internet Users Social Network Users On Mobile Platforms
  7. 7. Others Others Source: Gfk, Stat Counter (2019) OPPO AND SAMSUNG ARE RULING IN VIETNAMESE SMARTPHONE MARKET Smartphone And Tablet Market Share In Vietnam A large proportion of the market share of smart mobile devices in Vietnam at the end of 2019 belongs to Samsung and Oppo. Low-cost mobile segment continues to grow dramatically, with Realme, the rising star, swiftly reached 6.3% market share. However, the actual market share of Apple might be multiple times larger as Vietnamese users prefer hand-carried iPhone to retailed ones due to lower pricing. According to statistics from Stat Counter, it is iPhone that Vietnamese people use the most nowadays with 40.4% of the number of devices. Big brand names such as Sony and Huawei nearly vanished on the Vietnamese mobile market map. In contrast, the tablet market in Vietnam shows signs of leveling off and gradually saturating. Apparently, only Apple and Samsung have launched new models, and remains the dominant position.
  8. 8. ANDROID WON THE SMARTPHONE SEGMENT, WHILE IOS DOMINATED TABLET DEVICES 2019 2018 2017 Android iOS Others iOS 13 iOS 12 Earlier 9.0 Pie 8.1 Oreo 5.1 Lollipop 6.0 Marshmallow Others 48.39% 24.76% 26.85% 38.68% 15.02% 9.80% 7.67% 19.51% Source: Stat Counter (2019) Android is still the most popular operating system in Vietnam as it is operated on 58% of the total number of active smartphones. This figure for iOS is more than 40%. As for the current tablet market, iOS is undoubtedly the most popular operating system, with 73% of the total active devices in 2019. A large percentage of Vietnamese users have not upgraded their devices' operating systems to the latest version. App developers and marketers should take this characteristic of users into consideration, to optimize and promote their apps to be compatible with these available versions of operating system.
  9. 9. VIETNAM IS AMONG THE TOP 15 COUNTRIES IN TERMS OF SMARTPHONE USERS 851.1M 345.9M 59.90% 25.30% 79.10% 45.60% 66.30% 31.10% 57.20% 49.50% 79.90% 82.90% 77.50% 54.80% 54.00% 44.90% 33.60% Penetration Rate Top 15 Countries/markets By Number Of Smartphone Users Source: Newzoo (2019) 96.9M 95.4M 260.2M 83.9M 72.6M 65.9M 65.6M 55.5M 50.7M 45.4M 44.8M 43.7M 36.3M Belong in the top 15 countries with the highest number of smartphone users (Active Smartphone Users), Vietnam ranked 14th with 43.7 million users out of 97.4 million of the total population, which made the penetration rate grow up to 44.9%. This statistic has proven the enormous potential and rapid growth of the Vietnamese mobile market in recent years. China is leading the chart, with 851.2 million smartphone users by the end of 2019, far ahead of the second and the third which are India (345.9 million users) and the United States (260.2 million users), respectively. With its great demand and steady growth, China is expected to continue to hold the leading position for the long future to come.
  10. 10. 10. United Kingdom Source: AppTweak (2019) Hạng 502.609.100 50% 50% Source: AppTweak (2019) VIETNAM IS AMONG TOP 10 COUNTRIES WITH THE HIGHEST APP DOWNLOADS IN 2019 Leading Countries In App Downloads 2019 In the ranking of the top market with the most downloads on Apple Store and Google Play by the end of the second quarter of 2019, Vietnam is one of the two Southeast Asian countries (along with Indonesia) appearing in this list at 7th place. According to these statistics, there are approximately 750 million app down- loads from Vietnam, which shows a huge demand for mobile apps from the Viet- nam market. Another representative of Southeast Asia, Indonesia, ranks 4th place in the list. The top 3 is Brazil, United States, and India, which are inherently the biggest market in the world, continue to maintain their position. 1. 3. 5. 6. 7. 8. 9. 2. 4. 10. United Strates Japan United Kingdom Russia India Brazil Indonesia Mexico Turkey Vietnam 5 184 710 900 3 333 197 400 1 890 386 400 1 536 383 300 1 115 105 900 877 837 700 748 641 400 711 545 900 564 410 200 502 609 100 2% 98% 63% 37% 9% 91% 3% 97% 22% 78% 10% 90% 21% 79% 17% 83% 61% 39% 50% 50% Rank Country Total Downloads iOS Android
  11. 11. 49.5% 6.3% 6.3% 6% 5.7% 1. Games 2. Photography 3. Social 4. Entertainment 5. Healthcare 2. Photography 3. Social 4. Entertainment 5. Healthcare 7% 3.8% 1.9% 1.3% 1. Games APPLE STORE 82.2% GOOGLE PLAY Source: Applyzer (2019) GAMES IS THE CATEGORY WITH THE MOST APPS ON THE STORES Proportion Of App Categories in Vietnam 2019 – Grossing
  12. 12. Source: App Annie (2019) FACEBOOK, GOOGLE AND VNG ARE THE BIGGEST PUBLISHERS Top Apps of 2019 By Combined iOS and Google Play Downloads Top Games of 2019 By Combined iOS and Google Play Downloads App Publishers With The Most Downloads Game Publishers With The Most Downloads 1. Facebook Messenger 6. Shopee 7. B612 8. Lazada 9. WiFi Master Key 10. Kwai(快手) 2. Facebook 3. Tik Tok 4. Zalo 5. Zing MP3 1. Arena of Valor 6. Subway Surfers 7. Rules of Survival 8. Zombie Tsunami 9. Temple Run 2 10. Talking Tom Gold Run 2. Free Fire 3. Helix Jump 4. My Talking Tom 5. PUBG MOBILE Social Network apps and Messaging apps such as Facebook, TikTok, and Zalo bring the most downloads to the publishers in the Vietnamese market. Two game genres, which are Battle Royale (Free Fire, PUBG, Rules of Survival) and Hyper Casual (Helix Jump), continue to be the leading trend of the mobile gaming industry worldwide including Vietnam. Facebook, VNG, Google, and SEA (Garena) were the most successful publishers in Vietnam last year, thanks to the high app popularity.
  13. 13. 96% 95% 51% 22% 19% Source: We Are Social (2019) Most Popular Social Network Platforms* *Based on the percentage of internet users who claims using each platforms FACEBOOK, YOUTUBE, ZALO ARE THE MOST POPULAR SOCIAL AND MESSENGER PLATFORMS IN VIETNAM In 2019, Youtube surpassed Facebook to become the most popular social media platform by internet users in Vietnam, with 96% of respondents saying that they do use this platform, followed by Facebook with 95% of daily active users. The trend shows a high positive correlation with the general direction of digital marketing worldwide as video gradually becomes an influential format drawing huge traffic. Therefore, the thrive of video marketing is undoubtedly noteworthy for marketers in 2020. Meanwhile, Facebook Messenger continues to be a prevalent messaging, followed by Zalo. Marketers nowadays are getting familiar with messaging platforms as advertising operation channels, thanks to their native display ability, with an insignificantly negative impact on user's experience. 79% Most Popular Messaging Tools* 74% 33% 28% 23%
  14. 14. KEY TAKEAWAYS FOCUS ON SMARTPHONE1 BIG OPPORTUNITIES FOR APP DEVELOPERS AND MARKETERS 2 Game category is taking the lead on the app store, with 49.5% of the number of apps (Apple Store) and 82.2% of the number of apps (Google Play). It can be inferred that Vietnamese users spend most of their time using smartphones on playing games. Besides, social networks, e-commerce, messaging, hypercasual, and battle royale game apps have the most downloads in 2019. Mobile marketers should pay extra attention to these catego- ries to place their displayed advertising elements in apps effectively. Apple and Samsung are the leaders of a declining tablet market in Vietnam. The emergence of new smartphone models with larger screen sizes made owning another tablet device unnec- essary. However, it's not the time for publishers or app marketers to completely "ignore" tablet devices yet although mobile apps and advertising formats that are more compatible with smart- phone screen sizes are more favored.
  15. 15. 02 VIETNAMDIGITAL ADVERTISING MARKET 02
  16. 16. ALL TYPES 2018 2019 2020 2021 2022 $0.6 $0.9 $1.2 $1.5 0 $0.3 $1.2 $1.26 $1.33 $1.38 $1.43 ` 20.6% 22% 27.2% 21% 22.5% 44.6% 41.3% 29.9% 17.4% 64.8% 20.5% 22.5% 23.4% 24.2% 24.7% Source: eMarketer (2019) VIETNAM’S ANNUAL DIGITAL ADVERTISING SPENDING IS STILL ON THE RISE Projection Of Total Spending On Media and Online Advertising Of Vietnam Market 2019 (Unit: Billion USD) Percentage Of Digital Spending On Total Online Media Spending Digital Spending Total Spending On Online Media % Rate For Digital Spending Although spending on digital online platforms has been on the rise for the last few years, the Vietnam advertising market is still “covered” mostly by traditional advertisements. In 2019, Vietnamese brands spent approximately 284 million USD on online ads, only taking up 20.6% of the spending on all forms of advertisement. This is an average number compared with Southeast Asian countries such as Thailand (22%), Singapore (27.2%), and Philippines (21%). However, this ratio pales in comparison with other countries like Korea, Japan, and China. Digital advertisement in the Vietnam market is predicted to grow steadily in the following years, taking up to 24.7% the sum of the spend- ing on advertisement in 2022. This means digital marketing will slowly but surely become an essential factor in marketing activities.
  17. 17. LINKS STATUS POSTS 23.9% 12.9% 6.7% 6.2% 4.9% 2.8% 4.5% 38% Others FMCG Source: Statista (2019) RETAILS - E-COMMERCE AND FMCG ARE THE MOST GENEROUS SPENDERS Vietnam Digital Advertising Spending By Industries Retails/ E-Commerce In 2019, brands in the industries of retails/ e-commerce and FMCG were the biggest spenders for digital advertising with 23.9% and 12.9%, respectively, out of the total online advertising budget. Other major spending groups are Automobiles, Financial Services, Tourism, and Telecommunications. These figures have shown the resources that e-commerce businesses are willing to invest in digital advertising in recent years, which is linked to the "money burning" race of e-com- merce businesses such as Shopee, Lazada, Sendo, and Tiki on advertising channels. This trend is expected to continue in 2020. Autom obiles Financial services Tourism Telecom munications Techno logies
  18. 18. 34 569 900 30 929 800 27 114 500 24 364 700 Shopee Sendo Tiki Lazada 28% 72% 1. 2. 3. 4. 21.3% 10.2% 6.5% 4.6% Total visiting traffic between foreign e-commerce platforms and domestic platforms. Source: iPrice (2019) VIETNAMESE E-COMMERCE BUSINESSES MARK A LEAP WITH THE SUPPORT OF INFLUENCER MARKETING Most Visited E-commerce Platforms In Vietnam (Web-based) RANK PLATFORM MONTHLY VISITS PERCENTAGE OF APP USERS Foreign Platforms Domestic Platforms The e-commerce industry in recent years is in a fierce money-burning race among regional giants such as Shopee and Lazada, together domestic enterprises such as Tiki and Sendo. Businesses must invest a lot of their budgets in warehouse infrastructures, human resources, and notably marketing and advertising campaigns in order to leverage their position in the market. Enterprises with insufficient capacity will soon be "eliminated" from this race. In 2019, Vietnam's e-commerce industry reached a total value of US $ 38 billions. In terms of the number of visits in the past year, Lazada was falling behind after being surpassed by Shopee and Tiki at the end of 2018. It has also been surpassed by Sendo in the last two quarters. Domestic e-commerce platforms are gradually taking a significant piece of the cake over big play- ers from regional markets thanks to its profound understandings of the local market and effective use of Influencer marketing.
  19. 19. 18.95 millions 18.04 millions 50.48 millions 34.5 millions 27.1 millions 24.3 millions 24 millions 31 millions Q3/2017 Q3/2019 #4 #5 #3 #1 #1 #2 #3 #4 Source: iPrice (2019) VIETNAMESE E-COMMERCE BUSINESSES MARK A LEAP WITH THE SUPPORT OF INFLUENCER MARKETING Monthly Website Visits Of Big E-commerce Platforms In Vietnam From 2017 To 2019 2019 is a successful year for e-commerce businesses in the Vietnam market that used Influencer Marketing as the main tactic of promoting their product. Shopee rose to the top of the market with campaigns partici- pated by “top tier” worldwide KOLs such as Cristiano Ronaldo, BlackPink, and notable Vietnamese influenc- ers, which are Huong Giang and Hoai Linh. Tiki joined the race when choosing the golden couple Truong Giang - Nha Phuong as the brand ambassador, as well as taking wide coverage in a lot of popular Vietnamese music videos. Sendo, though "quieter", also had famous female singer My Tam as the brand ambassa- dor. The only platform outside this trend - Lazada, had suddenly “fallen behind” in the race, experiencing the most significant decrease in market share and number of visitors in recent years. After a period of applying influencer marketing, both Shopee and Tiki have impressively advanced their positions in the rankings of user’s monthly website visits in Vietnam. Along with attractive promotional programs and good system optimization, it is undeni- able that influencer marketing has brought great efficiency and coverage to Vietnamese e-commerce platforms. Eventually, Lazada has to catch up on this trend. They have had Gil Le, Miu Le, game streamers like PewPew, ViruSs do live streams in their recently promotional campaigns.
  20. 20. LINKS 55.20% 67.1% 67.8% 68.1% 68.4% 2018 2019 2020 2021 2022 SPENDING FOR MOBILE ADS MAKES UP A LARGE PROPOTION OF DIGITAL MARKETING BUDGET Source: eMarketer (2019) Following up with the above trends, mobile ads are on the rise and will play an increasingly important role in the near future. Mobile advertising budgets in 2019 have increased sharply compared to a year before, from 55.2% of the total online advertising budget (in 2018) to 67.1% in 2019. Mobile Ads are also forecasted to grow steadi- ly. It is expected to reach 67.8% of the total digital budget by 2020 and 68.1% by 2021. Total Spending For Mobile Ads/ Total Spending For Digital Ads (Spending for Mobile Ads includes advertisement on smartphone, tablet and other smart devices, except MMS or P2P message)
  21. 21. ALL TYPES 3.81% VIDEO POST 6.55% PHOTO POST 5.22% 3.25% LINKS 2.71% STATUS Source: We Are Social (2019) The Ratio For The Number Of People Who Engage With A Facebook Page’s Posts Vs. Page Reach For Every Type Of Content On Social Media VIDEO – THE LEADING FORMAT OF DIGITAL CONTENT Video is the most engaged format of content on Facebook in Vietnam, with a rate of 6.55% of total reach. It can be understood that when a Facebook post in the format of video reaches 100 users, there will be more than 6 of them interacting (comment, react, share). Meanwhile, the average interaction rate of all types of posts on fanpage is only 3.81%, of posts containing images is 5.22%, of posts that contain links is 3.22%, and of status is the lowest with 2.71%. Therefore, visual elements such as images or videos are very important for every post on social networks. These numbers also once again confirm the effectiveness of video content in 2019. Marketers need to pay attention to the content and duration of their advertising video clips on social media to increase brand recognition. In particular, the “fast food”, mobile-friendly, and highly interactive videos such as live videos, short videos, and vertical videos proved to be effective and will be the trend in the near future.
  22. 22. 2016 2019 Like it So so Dislike ” - Source: Q&Me (2019) Most Popular Types Of Content On Social Media VIDEO – THE LEADING FORMAT OF DIGITAL CONTENT 33% 30% 37% 31% 29% 40% 35% 27% 38% 40% 26% 34% 49% 30% 21% 19% 32% 49% 18% 37% 34% 24% 32% 44% 22% 38% 40% 27% 39% 34% Content With Video Content With Celebrity Content With Game Content With Q&A Content With Infographics Content With Video Content With Celebrity Content With Game Content With Q&A Content With Infographics Social media users’ interests are always geared toward video content. Among the types of content included in the survey, content with the presence of celebrity had the highest reach in 2016, with 40% of users surveyed saying they were interested in this type of content. Video content was also popular at the time with 37% of its users. By 2019, video content has taken the leading position with nearly 50% of the people surveyed. Previously, in 2016, infographic content with a lot of information and high expertise tended to be unattractive to the majority of users. However, the numbers from 2019 also show a greater openness of users to social media content, even to content with infographics, as the number of “like it” or “so so” options has increased compared to the past.
  23. 23. #1 YouTube (Google) #2 Facebook #4 #5#3 Source: Comscore (2019) Leading Video Sharing Platforms Owners In Vietnam VIDEO SHARING PLATFORMS IN VIETNAM – YOUTUBE LEADS IN TERMS OF TRAFFIC Monthly Unique Visitors: 13 676 000 Videos: 3 496 033 000 Average minute per viewer: 1 522.20 Monthly Unique Visitors: 2 365 000 Videos: 51 115 000 Average minute per viewer: 2.5 Monthly Unique Visitors: 2 156 000 Videos: 42 051 000 Average minute per viewer: 38 Monthly Unique Visitors: 2 014 000 Videos: 18 628 000 Average minute per viewer: 6 Monthly Unique Visitors: 10 012 000 Videos: 193 902 000 Average minute per viewer: 153.5 Admicro - VCCorp 24H Advertising Group Adtima – VNG Corporation The owners of the leading video media platforms in Vietnam are also those with the highest digital advertising revenue in recent years. Google, with its YouTube video platform, still obviously takes the lead with more than 13 million unique visitors (the number of people - the network account by IP address) visited the site on average in a month, and nearly 3.5 billion videos were posted. Apart from the two giants Facebook and Google, domestic owners such as Admicro, 24H, or Adtima are the next with their own platforms. These will probably be the leading media platforms in the Vietnamese market in the next few years.
  24. 24. 3% 6% 15% 65% 86% 91% Source: Q&Me (2017) FACEBOOK AND YOUTUBE ARE STILL THE BEST PLATFORMS FOR ADVERTISEMENT IN VIDEO FORMAT Most Popular Platforms For Video Content Others CocCoc Ad Network/ DSP Website/Businesses’ platforms Facebook Youtube Using video marketing is one of the most basic tools in the digital marketing activi- ties of Vietnamese businesses. Up to 85% of businesses in Vietnam use this tactic in their marketing activities. Along with that, Facebook and YouTube are still the two most popular platforms for businesses to post their promotional videos thanks to the high traffic and various advertising formats. Besides, businesses are gradually taking advantage of their owned platform/website, with 65% of businesses surveyed. Moreover, some ad networks from media agencies are also a highly valued choice.
  25. 25. ` Source: We Are Social (2019) SOCIAL MEDIA PLATFORMS AND ONLINE NEWSPAPER HAVE THE HIGHEST VISITS IN VIETNAM Websites With The Highest Visits In Vietnam Monthly Visit: 371 700 000 The search engine - Google and two social networks Facebook and YouTube respec- tively continue to be the 3 websites with the highest number of visits in Vietnam. Vietnamese people also visit major online newspapers such as VnExpress, Zing.vn, Kenh14.vn and 24h.com.vn. Another search engine that takes turn in the list is Coccoc's website. It is worth noting that all these names are very effective platforms for marketers in recent times. Google, Facebook, and Coccoc are platforms that have significant revenue from advertising with various solutions and ad formats . Meanwhile, the leading newspapers are now in the network of reputable advertising agencies such as Eclick (VNExpress), Adtima (Zing.vn), Admicro (Kenh14), 24H Group (24h.com.vn). YOUTUBE Monthly Visit: 334 100 000 KENH14 Monthly Visit: 33 200 000 VNEXPRESS Monthly Visit: 68 300 000 FACEBOOK Monthly Visit: 341 600 000 24H Monthly Visit: 28 100 000 GOOGLE ZING.VN Monthly Visit: 55 800 000 COCCOC Monthly Visit: 28 600 000
  26. 26. 87% GEN Z 82% MILLENNIAL 66% GEN X 66% GEN Z 44% MILLENNIAL 30% GEN X 67% GEN Z 90% MILLENNIAL 86% GEN X 25% GEN Z 16% MILLENNIAL 5% GEN X Source: Decision Lab (2019) FACEBOOK IS THE “MULTI-GENERATIONS” SOCIAL NETWORK WHILE TIKTOK & INSTAGRAM ARE GEN Z’S WORLD Social Media Usage By Generations Facebook is considered a "national" social network with millions of users of all ages and generations. Meanwhile, Tiktok is only popular among young users (25% of Gen Z surveyed said to use this social network). Another social media application - Zalo messaging is popular with older users (86% of Gen X and 90% of Millennials). When executing advertising campaigns, marketers need to identify which social media platforms have users of the age groups corresponding to their targeted customer profiles, have appropriate communication channel and deliver the suitable messages.
  27. 27. 66% 34% Mobile App Mobile Web 40% 60% 53% 47% 61% 39% 59% 41% 44% 56% 38% 62% 25% 75% 30% 70% 43% 57% 22% 78% 19% 81% 51% 49% Source: Vpon (2018) Ad Inventory ratio of Mobile Website and Application in Asia MOBILE APPS TAKE MORE AD INVENTORY THAN MOBILE WEBSITE Mobile advertising space (advertising inventory) in Asia mostly belongs to the mobile app. Regional markets all have a higher proportion of mobile apps, and the Vietnam market is no exception.
  28. 28. 7% 5% 65% 22% 2.06% 0.60% 1.06% 1.91% 9.18% 7% 5% 1% 65% 22% 4.53% 3.58% 7.34% 1.78% 0.84% Source: Mobvista (2018) NATIVE ADS HAVE THE HIGHEST CONVERSION RATE IN SEA MARKET Impression Clickthrough Rate Conversion Rate 75% 50% 0% 25% 10% 0% 5% 10% 0% 5% Impression, Click-through rate and Conversion rate of mobile ads formats in SEA market. Among mobile advertising formats in Southeast Asia, native in-feed ads have the highest impression with 65%, while full-screen ads (Interstitial) have the highest click-through rate. Native app wall (list of ads offer) is the format with the highest conversion rate. Rewarded video Native in-feed video Interstitial Non- rewarded native feed ad Native app wall Rewarded video Native in-feed video Interstitial Non- rewarded native feed ad Native app wall Rewarded video Native in-feed video Interstitial Non- rewarded native feed ad Native app wall
  29. 29. KEY TAKEAWAYS VIDEO CONTENT IS THE MOST ATTRACTIVE DIGITAL CONTENT FORMAT 1 TARGET THE RIGHT SOCIAL MEDIA CHANNEL 2 NATIVE IN-APP MOBILE ADVERTISING IS ALWAYS THE CREDIBLE FORMAT 3 On Facebook, video is the most interactive content in Vietnam, with an interaction rate of 6.55%. Vietnam is also one of the top 5 countries that have the highest watch-time on YouTube in the world. The proves that video is still the most effective content format. Not only does brands and marketers need to invest more on videos but they also need to focus on the rising format with impressive interaction rate - live videos. In the context that Mobile Ads are expected to grow steadily in the coming years, advertisers need to find the most optimal formats for them. Traditional banner ads are inherently not highly appreciated visually on websites or mobile platforms. Along with that, video and reward ads are considered to be time-consum- ing for users and can easily be ignored. There- fore, native in-app ads proved to be an effective form for marketers to promote their products or applications. The conver- sion ability of the native app wall format also reached the highest rate with 9.18%, far behind other ad formats. Social networks also have different age groups of users, when Facebook is a social network of all ages, Tik Tok is for Gen Z and Zalo has the majority of users are Gen X and Millenial. There- fore, marketers need to pay attention to using social media channels that are appropri- ate for each of their customers, while offering content suitable for each age group that they target.
  30. 30. 03 VIETNAMESE USERS’ BEHAVIOUR ON DIGITAL PLATFORMS 03
  31. 31. 6H42M 2H33M 2H31M 1H11M . Source: We Are Social (2019) MORE THAN 6 HOURS SPENT ON THE INTERNET Time Spent For Online Media Total Time Spent Online Using Social Media Watching TV or Streaming Video-on-demand Content Streaming Music According to a survey from We Are Social, Vietnamese people in 2019 spent an average of 6 hours 42 minutes daily to access the internet on all devices. Coinci- dentally, 6 hours 42 minutes is also the average online time in a day of internet users worldwide. During that 6 hours, Vietnamese people spend an average time of 2 hours and 33 minutes on social network, 17 minutes higher than the world average. Entertainment streaming platforms (music, TV shows) such as Netflix, Spotify are also on the rise in the Vietnam market. In 2019, Vietnamese people spent 2 hours 31 minutes a day on streaming TV and 1 hour 11 minutes on listening to streaming music. In addition to TVCs for TV shows, marketers have begun to pay attention to audio advertising through platforms like Spotify or Zing MP3.
  32. 32. 1:47 1:57 2:07 2:16 2:34 2:36 2:33 2:33 2012 2013 2014 2015 2016 2017 2018 2019 Ranked # 21 in the world for the average time spent social media in a day Source: GlobalWebIndex (2019) THE AVERAGE ONLINE DAILY TIME OF VIETNAMESE PEOPLE ON SOCIAL NETWORK MAINTAINS AT MORE THAN 2 HOURS Average Daily Time A Vietnamese Spends On Social Networks (Hourly) The amount of online time on social networks of Vietnamese people has remained stable at 2 hours and 33 minutes in the past two years. After the booming period in 2015, since 2016, the online time of Vietnamese users has stopped at more than two and a half hours. This is an average figure compared to the world data when Vietnam ranked 21st out of all the countries surveyed. Filipinos have the most time online in the world (both on social networks and the internet) with 4 hours and 10 hours a day.
  33. 33. 1% THE MAJORITY OF USERS USE SOCIAL MEDIA TO CATCH UP WITH RELATIVES AND FRIENDS The Majority Of Users Use Social Media To Catch Up With Relatives And Friends Source: Q&Me (2019) CATCH UP WITH FAMILY AND FRIENDS 76% GET INFORMATION ON NEWS AND EVENTS 48% FIND OUT ENTERTAINMENT NEWS 39% MAKE NEW FRIENDS 30% SHARE PICTURES AND VIDEOS 26% PLAY GAMES 13% FOLLOW BUSINESSES AND BRANDS 11% FOLLOW CELEBRITIES 9% FIND POTENTIAL DATES 7% SHARE REVIEWS AND OPINIONS 7% 3%CO-ORDINATE EVENTS OTHERS 1% Contact and update news from friends and relatives, update the latest information about entertainment activities and nearby events are the keywords that social network users in Vietnam give out when asked about the main purpose of using social network. 76% of people surveyed said they use social networks to follow and interact with their friends and relatives. The next three activities are news and information updates on events (48%), entertainment news (39%), and making friends (26%). The survey’s data also showed that only 11% of people use social networks to track information from brands or businesses, while up to 30% follow entertainment contents. Therefore, brands need to invest more in innovative and interactive content formats instead of traditional one-sided content to raise brand awareness.
  34. 34. Facebook YouTube Mobile Apps Website Facebook Messenger 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% FACEBOOK IS THE MOST POPULAR ADVERTISING CHANNEL Most Popular Advertising Channels Advertising Efficiency On Social Media Source: Q&Me (2019) Other social media besides Facebook Other video platforms beside YouTube Others 36% 64% 51% 49% Percent of users clicking the ads within 7 days Percent of users purchasing products after seeing ads Facebook remains the most popular channel for consumers to click on ads, with 53% of people surveyed saying they often click on ads on social networks. They are followed by ads on YouTube (42%) and Mobile App (20%). Social media advertising has also shown its effectiveness, with more than 64% of users clicking on Facebook ads in 7 days. The number of people who decide to buy after seeing ads on social networks is also up to 51%.
  35. 35. ALL TYPES LINKS STATUS POSTS 3 6 9 12 15 FEMALE USERS IS MORE INTERACTIVE THAN MALES Interactive Activities On The Facebook In 30 Days Source: We Are Social (2019) Male Female Comment Like post Share post Click ads The average number of times a person performed interactive actions on Facebook over a 30-day period (survey-based) Female social media users tend to interact more with social media posts. Within 30 days, the number of actions (interactions) of female users on social networks such as comments, react, share, or click on ads is always marginally higher than men. This is a notable fact for executives and manag- ers when implementing campaigns on social networks. For brands aimed at female custom- ers, promote the interactivity of the article such as discussions, likes, shares will increase the coverage and accessibility of the products.
  36. 36. 40% 45% 30% 28% 28% 27%24% THE MAJORITY OF USERS CLICK ON ADS WHEN THEY HAVE THE NEED FOR THE PRODUCTS Reasons To Click On Ads/CTA Buttons Source: Q&Me (2019) By Mistake Attractive Promotion/Discounts Have To See The Ads To Watch The Desired Contents Products/Services Match My Interest The Favourite Brands As The Ads Look Impressive Funny Contents Advertisers need to be very careful when tracking the results of their advertising campaigns because it is possible that among the number of clicks on banner ads, there might be many interactions that happened because users accidentally did the wrong click. According to a survey from Q&Me, this number is 24%. Also, 28% see or click on the ad just to see the content they want. However, there are still positive signals to the advertisements of which products meet the needs or interests of customers. Other noticeable criteria are eye-catching, entertaining, funny content or content belongs to favorite brands, attractive pro- motions/discounts also gain a good amount of clicks and interactions.
  37. 37. LINKS 42% 30% 20% 8% Internet (Mobile) Internet (PC) TV Others MOBILE – POTENTIAL CHANNEL TO REACH CUSTOMERS Amount Of Time For Media Channels Source: Q&Me (2019) Most of the online time of Vietnamese adults is spent on their mobile devices Currently, mobile is not only a trend but also a mandatory channel in digital marketing. Whenever marketers think about digital, they have to think of mobile first, spend more advertising budget on mobile marketing as well as optimize the user experience on mobile platforms such as app or web- site.
  38. 38. 59% 79% 53% Source: Google, Kantar (2018) MOBILE IS THE KEY TOUCHPOINT IN CUSTOMERS’ DECISION MAKING PROCESS Smartphone is becoming an important touchpoint, as well as a catalyst for purchase decision of buyers Southeast Asian consumers use smartphones to research products they are interested in before making a purchase. Consumers in Southeast Asia will still look up information about products online while shopping, even at the point of sale. Consumers in Southeast Asia have a habit of buying online through the phone.
  39. 39. 53% 20% THEREFORE, USERS HAVE HIGH EXPECTATIONS FOR THE CONVENIENCE OF MOBILE WEBSITE Source: Google, Kantar (2018) User will leave the website if it does not finish loading after 3 seconds Conversion rate drop within every second the website “delays” to load Brands need to optimize the user experience on their mobile sites if they don't want their customer base to decrease. Designing mobile-friendly websites (RWD-Responsive Web Design or Mobile Responsive Web) is not only a popular method but also a must. According to Google, to optimize for mobile websites for their brands, businesses need to pay attention to invest in two main technologies, AMP (Accelerated Mobile Pages) and PWA (Progressive Web Application).
  40. 40. MOBILE FIRST LUÔN LÀ XU HƯỚNG Although consumers in SEA and Vietnam are spending a lot of time on online channels, the time spending for TV channels is not completely "cut off". Although digital spend- ing is currently growing in recent years, Traditional adver- tisement are still taking the bigger share in the market. Spending on digital advertising only takes up 20.6% of the expenditure on all forms of advertisement, which is the average figure in the region. Marketers should avoid follow- ing the "trend" so much that they might neglect effective traditional advertising channels such as OOH, TVC. As long as the brand's marketing budget is sufficient enough, the multi-channel marketing strategy will be the most ideal and effective solution. Facebook remains the most popular channel for consumers to click on ads. Social media advertising has also proven its effectiveness, with more than 64% of users clicking on Facebook ads within seven days. The number of people who decide to purchase a product after seeing ads on social networks is also up to 51%. Social Media will undoubted- ly be the main digital channel of brands for many years to come, along with online video platforms. KEY TAKEAWAYS FOCUS ON DIGITAL BUT DON’T FORGET TRADITIONAL CHANNELS 1 SOCIAL NETWORK IS THE MOST POPULAR DIGITAL ADVERTISING CHANNEL 2
  41. 41. Vietnamese spend most of their time on social networks following and updating news from friends and relatives, keeping up with events around them, and reading entertain- ment content. In addition to that, they also regularly access the online newspaper to update the news. This shows that online users have no desire to be "surrounded" by purchasing messages from brands while using social networks. Therefore, brands need to create natural, creative, and highly interactive content to attract users' attention. KEY TAKEAWAYS DELIVER APPROPRIATE MESSAGES 3 MOBILE FIRST IS ALWAYS AN INPORTANT TREND 4 Mobile platforms is not only a trend but also a mandatory channel in digital marketing as Vietnamese adults spend most of the online time on mobile devices. Whenever marketers think about digital, they have to think of "mobile first". The smartphone is becoming an import- ant touchpoint, as well as a catalyst for the purchase decision of buyers. Brands need to optimize the user experience on their mobile sites if they don't want their customer base to decrease. Designing mobile-friendly websites (RWD-Responsive Web Design or Mobile Respon- sive Web) is not only a popular method but also a must.
  42. 42. 2020 DIGITAL ADVERTISING TRENDS PREDICTION 2020
  43. 43. 2019 is the year that marks the rise of a new video platform - TikTok. Along with that, the platform paves the way to the new shorter, more interactive, more "fast food" video contents that are short clips and vertical videos. The popularity of Tik Tok and Instagram's IGTV has set a new trend in the way users interact with video content. An attractive advertising video needs to be concise, creative, simple, and highly entertained in order to attract viewers. Having compatible size with mobile devices, short videos with vertical format are much more accessible with media users (who mainly use mobile devices to log in to social network). Less than a minute is the ideal duration for short videos posted on social media. In addition to adjusting the video format to be trendier on social media, marketers also need to refine the messages they want to deliver, especially when the amount of time spent by users on online content is significantly decreasing with the appearance of short videos. Audio Ads will also be a potential format for marketers in 2020, due to the growth of music stream- ing platforms like Spotify or MP3 Zing. In Vietnam, the percentage of smartphone users listening to music accounts for 78%, and up to 68% of them listen to music when multitasking. Audio advertising was also proved to be an accessible tool that helps users to memorize information faster and longer through "screenless moment." For a 30-second audio ad, brands need to deliver the message as quickly and concisely as possible, using a positive and upbeat tone with about-55-to-70-word script. 1. NEW CONTENT FORMATS: VERTICAL VIDEO, SHORT VIDEO AND AUDIO
  44. 44. Social Commerce is a feature that allows consumers to directly make instant purchases on photos or regular posts on social network's newsfeed or advertise- ments without leaving the app Business or shop owners only need to upload photos with items and tag prices on products like a normal post, then users can easily see the prices and make purchases with just one click. This feature of social networks allows brands to reach new customers in a quick, easy way, helps shorten the sales funnel and increase the conversion rate between interaction and the brand's order Currently, popular social networks such as Facebook, Instagram, and Pinterest all offer this feature. Therefore, shop owners can link their online shops to social networks easily. Social Commerce promises to be a key tool for eCommerce and small businesses in the future. Combining Social Commerce and Influencer Market- ing will be a remarkable marketing strategy in 2020. 2. SOCIAL COMMERCE/SHOPPABLE POST
  45. 45. 3. MICRO - INFLUENCER A KOL who is classified as a celebrity (over 1 million followers) or a macro influencer (250 thousand - 1 million followers) will surely receive a lot of advertising invitations from many brands. However, when an influencer appears and represents for too many campaigns or brands, customers' trust will considerably reduce. In contrast, micro-influencers with fewer than 50k followers have their reach in every aspect of daily life and can interact with their followers frequently. Most of their followers trust in their messages and promotion which results in a higher conversion rate. A micro-influencer is often an expert in one major field, specialized in creating content that can naturally reach millions of viewers and very attached to his/ her community. Using micro-influencer also proven to be more cost-effective for marketing campaigns on social media. Statistics show that influencers who have a community of 30,000 followers or less often have an average of 60% more engagement than celebrities or macro-influenc- ers, while the cost is cheaper from 6 to 7 times. Therefore, platforms or networks of micro-influencers such as OTA Network, Minet, 7Saturday, or Viralworks will play a more important role in the field of online advertising.
  46. 46. - 4. DATA - DRIVEN MARKETING 2020 will be a year that marketers will focus more on the application of data and technological advances. Together with automation marketing, they will become powerful tools for marketers to carry out personalized marketing campaigns. Personalized marketing is implementing marketing strategy with personalized content for each specified group of potential customers through collecting and analyzing data based on user habits on different platforms The data is analyzed and collected to help marketers create different customer portraits, from which to come up with campaigns targeting the right audience, with the right message at the right time. The main available data sources that are commonly used are online advertising campaigns, demographic data, and customer relationship management (CRM) systems. Nowadays, when customers are constantly besieged with advertising messages, they will only be interested in highly personalized messages that meet their needs instead of generic ones. Emails and customized messages will also become increasingly important, especially in B2B Marketing, where customers always have high requirements for the content delivered.
  47. 47. At the moment, content marketing is no longer about providing raw informa- tion or conveying a one-way message to consumers. In the time of digital age, customers are bombarded by too many contents and advertisement messages everyday. Therefore, customers now tend to pay more attention to visual content that offers fresh and high interactive experience. In that context, interactive content was applied to bring "a breath of fresh air" to the online audiences. Among all kinds of interactive formats, live streaming is claimed to be the most effective form of interactive marketing, especially when it is used in combination with streamers and micro-influencers to promote products. This trend is becoming more and more popular in recent times. Because of its uniqueness and interactivity, interactive content will encourage users to react, share, or discuss the topic, which can contribute to the increase of brand awareness. The mixture of interactive content with differ- ent types of traditional content across multiple channels will be ideal for every business in the upcoming 2020. 5. INTERACTIVE CONTENT
  48. 48. VIETNAM MOBILE MARKETING LANDSCAPE Mobile Game Publisher Advertising & Marketing Mobile Payment Social Platform Carriers Events News and Media Infrastructure
  49. 49. VIETNAM DIGITAL ADS ECOSYSTEM Digital Agency Influencer Marketing Platforms & Agencies Livestreaming Platform Social Platform MCNs Social Listenng Tools
  50. 50. Adsota.com Adsota is a marketing company under Appota corporation. We strive to become the leading integrated marketing company that elevates digital landscape in Vietnam. Adsota provides digital solutions to help content creators, publisher and advertisers improve customer acquisition and maximize revenue growth. ABOUT ADSOTA
  51. 51. HEAD OFFICE: Building 11 (LE Building), Alley 71, Lang Ha St., Ba Dinh Dist., Hanoi, Vietnam Hotline: (+84) 911 983 189 Fanpage: facebook.com/adsota Email: sales@adsota.com Website: adsota.com CONTACT US Adsota.com 694K+ 596K+ 301K+ 170K+ 242K+

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