This document summarizes findings from Kantar Media's monitoring of online display advertising in Vietnam from April 2010 to March 2011. Some key findings include: - Total monitored spending on display advertising across 10 major websites in Vietnam was $26.3 million USD. - VNExpress attracted the most advertising dollars with $7.8 million spent on the site, accounting for 30% of total monitored spending. - Telecommunications was the largest spending sector, with telecom advertisers spending $4.2 million total during the period. - Youth are driving growth in internet penetration in Vietnam, while social networks, online gaming, and mobile access are emerging trends in online usage.

1. NET INSIGHTS REPORT
2011

2. About this report:
Kantar Media is shedding light on the fast growing Internet advertising industry in
Vietnam. The industry is definitely aware of the potential of online advertising but
currently marketers lack the reliable and transparent information they have in traditional
media fields.
We have been conducting Vietnam’s original in-depth study of online behavior – the
Yahoo & Kantar Media Net Index – for the past 3 years. This year’s survey was
conducted face to face in 4 key cities (Ho Chi Minh, Ha Noi, Da Nang and Can Tho)
with a sample size of 1,500 respondents. Net Index respondents are representative of
the urban population aged between 15-54 years old.
As a pilot project we have carried out continuous advertising monitoring of 10 key
websites in the Vietnamese market for 12 months (1st April 2010 - 31st March 2011).
The purpose of this monitoring is to gain an understanding of the current state of the
online advertising industry in Vietnam. Our online monitoring staff visit 10 selected sites
and record the advertising content on each site. The dynamic nature of online
advertising means that manual monitoring is not the ultimate solution but it does provide
a great overview of the advertising scene. This is why we have decided to release
these findings.
The 10 sites that have been monitored are:
www.24h.com.vn (24h) www.thanhnien.vn (TNIEN)
www.dantri.com.vn (DTRI) www.tuoitre.vn (TTRE)
www.ngoisao.net (NGSAO) www.vietnamnet.vn (VNNET)
www.nhacso.net (NHSo) www.vnexpress.com.vn(VNEX)
www.nhac.vui.vn (NVUI) www.mp3.zing.vn (MP3)
Where offline advertising has been referred to in comparison with online advertising
offline refers to all monitored TV channels, radio stations, newspapers and magazines.
At this time there are no available estimates of spending on OOH, direct marketing and
other marketing activities.
The objective of this report is to shed some light on the development of the Internet and
its users in Vietnam. Everyone, from site owners, advertisers and agencies to the users
themselves know that the Internet in Vietnam is growing rapidly. What is needed now is
clear actionable understanding of just what is happening online.
Please contact Clientservice.VN@kantarmedia.com for any further information
about this report or our current and proposed services.
Kantar Media Vietnam
Net Insights Report
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3. Report Contents
Executive summary .................................................................................. 4
On the surface........................................................................................... 5
How much is being spent on online display advertising? ............................................... 5
Where is online advertising expenditure going? ............................................................. 5
How does online advertising activity vary throughout the year? .................................... 6
What share of total advertising expenditure is spent online? ......................................... 7
Who is using the Internet? ............................................................................................... 8
How are people accessing the Internet? ......................................................................... 9
How often are Internet users online? .............................................................................. 9
Going deeper........................................................................................... 10
What are people doing online? ...................................................................................... 10
Who’s visiting? ............................................................................................................... 11
Who is advertising online? ............................................................................................. 12
How are the biggest offline advertisers advertising online? ......................................... 13
Which sectors are advertising online? .......................................................................... 13
…and how does their online advertising compare to offline?....................................... 14
Where are the different sectors advertising? ................................................................ 15
How do competitors compete in their online advertising activities? ............................. 16
Telecommunications: .................................................................................................... 16
Transportation: .............................................................................................................. 17
Kantar Media Vietnam's Services ........................................................... 18
Kantar Media Vietnam
Net Insights Report
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4. Executive summary
 Total monitored spend on 10 biggest display advertising sites in Vietnam was
$26,316,500 (US) (April 2010-March 2011).
 Display advertising on the Internet made up a 3.5% share of all advertising
expenditure over the monitoring period.
 Display advertising on the Internet is growing but it doesn’t reflect the high
reach the Internet is achieving in Vietnam relative to offline media types.
 Internet penetration has grown across all ages between 2010 and 2011. Over ½ of
all urban residents of Vietnam’s 4 biggest cities are now online regularly.
 Youths are driving the growth of internet penetration in Vietnam.
 The 3 main emerging online usage trends this year are the increased the usage of
social networks and online gaming and the growth of mobile access.
 VNExpress is the leading website in terms of advertising expenditure on the site.
Advertisers spent $7.8 million (US) on the site during the monitoring period.
 Vinaphone is the biggest online advertiser followed by 2 other telecommunications
sector advertisers. Vinaphone spent $1.1 million (US) on display Internet
advertising during the monitoring period.
 Telecommunications is the biggest spending sector online. Telecoms spent $4.2
million (US) on display Internet advertising during the monitoring period.
 Some of the biggest, strongest and most proactive offline advertisers are almost
invisible online.
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Net Insights Report
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5. On the surface
How much is being spent on online display advertising?
In the 12 months until March 31st 2011 there was $26,316,500 (US) of display
advertising monitored on the 10 sites. It’s important to note that this figure doesn’t take
into account any discounts on rate card prices of the insertions monitored.
Where is online advertising expenditure going?
VNExpress is clearly the strongest performing website in terms of attracting advertising
dollars. Vietnamese Internet-goers’ thirst for online news is highlighted by the fact that
the top 4 ranked sites are all news sites. It’s going to be interesting to see whether
growth in entertainment, socializing and mobile access alter the balance of online ad
spend in the coming years.
Advertising expenditure per site (April 2010 – March 2011)
$8 $7.8
Millions
$7
$5.8
$6
$5 $4.3
$4
$3 $2.6
$2.1
$2 $1.5
$1.0
$1 $0.5 $0.5 $0.3
$0
VNEX 24H DTRI VNNET MP3 NGSAO TTRE TNIEN NVUI NHSo
.
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6. Not only are those the top four sites news sites (VNExpress, 24h, Dantri and
Vietnamnet), they also account for over 75% of the advertising expenditure across the 10
monitored sites.
Share of online advertising expenditure per site (April 2010 – March 2011)
2% 2% 1%
VNEX
4%
24H
5%
30% DTRI
8%
VNNET
MP3
10% NGSAO
TTRE
TNIEN
16% 22%
NVUI
NHSo
How does online advertising activity vary throughout the year?
There’s a definite upwards trend in online spend as well as the share of overall
advertising going online across the 12 month monitoring period. These figures support
industry estimates that have placed Internet spending at around 1-2% in 2009 and
somewhere around 3% in 2010.
Ad expenditure by month and the online share of all advertising expenditure (April 2010 – March 2011)
$4,000,000 6%
5%
$3,000,000
4%
$2,000,000 3%
2%
$1,000,000
1%
$0 0%
APR MAY JUNE JULY AUG SEP OCT NOV DEC JAN FEB MAR
'10 '10 '10 '10 '10 '10 '10 '10 '10 '11 '11 '11
NET ADEX ($ MILLIONS) SHARE OF ALL ADEX (%)
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7. The dip in the early months of 2011 is not exclusive to the online advertising industry. It
is shown across the industry around the new year (Tet) period and was displayed
across all the media types.
Advertising expenditure by media type (April 2010 – March 2011)
$60
Millions
$50
$40
$30
$20
$10
$0
JULY '10
MAY '10
AUG '10
APR '10
DEC '10
FEB '11
JUNE '10
NOV '10
JAN '11
SEP '10
OCT '10
MAR '11
INTERNET TV NEWSPAPERS MAGAZINE RADIO
What share of total advertising expenditure is spent online?
It’s clear that advertisers world-wide are increasing their focus on digital advertising.
Vietnam is no different although the process is still in its primitive stages. As Table 4
and Table 5 (next page) show, spending on display advertising is still a relatively small
share of the overall advertising spend. TV is the advertising king in Vietnam and this
isn’t going to change any time soon but Internet is definitely starting to develop its
share.
Table – Share of advertising (April 2010-March 2011)
6.2%
10.3%
0.2%
3.5% INTERNET
TV
NEWSPAPERS
MAGAZINE
79.7% RADIO
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8. Who is using the Internet?
Vietnam’s young and developing population coupled with improved Internet accessibility
have helped Internet penetration in Vietnam become amongst the strongest in the
South East Asian region.
Media reach in the past week (%) by age. Source-MHS 2010 52 week fieldwork, 4 cities.
100
80 Internet
60 TV
40 Radio
Newspaper
20
Magazine
0
15-19 20-24 25-29 30-34 35-39 40+
The costs of internet access mean that its only natural to expect the higher socio-
economic levels (SEL) to be more likely to be internet users. There are a higher
proportion of upper SEL ranked people using the Internet than any other media type
and far fewer members SEL 4 (bottom 40% socio-economic classification of the
population). SEL represents both durable items owned and highest level of education.
It’s considered a far more reliable estimate of spending power in Vietnam due to the
sensitive nature of income related questions.
INTERNET 21 34 36 9
TV 10 20 30 40
NEWSPAPER 13 23 35 30
MAGAZINE 17 29 40 15
RADIO 8 18 33 41
SEL1 SEL2 SEL3 SEL4
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9. How are people accessing the Internet?
There is a definite shift to private access. Better access to Internet connection,
cheaper computers and mobile devices are all contributing to Vietnamese citizens’
ability to get online on their own terms. The growth of mobile access is strongest in the
smaller cities of Da Nang and especially Can Tho where traditional access can be more
difficult than in the 2 biggest cities.
88
75
2010 2011
42
36
29 28 30
17 18 19
13 13 12 13
How often are Internet users online?
The Internet has become the second most accessed media type on a daily basis behind
TV. Over 70% of Internet users claimed to have been online yesterday. Not only are
Internet users going online more often they’re seemingly very highly engaged. More
than 80% of people who accessed the Internet yesterday agree that “when I need
information the first place I look is the Internet”.
Accessed media type yesterday (%) – Based on Kantar Media MHS Survey 4 city survey Week 1-52 2010
95
40 42
23
6
TV NEWSPAPER MAGAZINE RADIO INTERNET
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10. Going deeper
What are people doing online?
Whilst the most popular online activities in Vietnam – search, keep up to date,
communicate one-to-one - remain popular with almost all users, there are some
significant increases in the usage of social networks, using mobile devices to access the
internet and online gaming.
100
90
80
2010 2011
70
60
50
40
30
20
10
0
Forum
Purchase
News
UGC
Blog
Gaming
Social network
Search
IM
Portal
Email
Mobile
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11. Who’s going where?
Advertisers’ decisions are not just based on absolute reach, but also the ability of a site
to reach their specific target market. The bigger news sites generally attract older than
average males. Each of the music sites attracts a younger audience. MHS results
provide site level analysis so all users of the Zing family of sites (Zingme, Zing MP3,
Zing News etc) are aggregated in this analysis.
ZING 24H
ALL SITES VNEX TNIEN
NHSO DTRI
NVUI
VNNET
TTRE
NGSAO
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12. Who is advertising online?
Online advertising top spenders (April 2010-March 2011)
$1,200
Thousands
$1,071
$1,000 $803
$766
$800
$522
$600 $402
$353
$349
$338
$289
$400
$282
$295
$265
$223
$239
$218
$212
$211
$211
$227
$197
$200
$0
Online advertising is a growing market but it’s being pushed hardest by specific sectors.
Just by scanning the top 20 online advertisers you will notice an abundance of
telecommunication (5) and transportation companies (6).
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Net Insights Report
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13. How are the biggest offline advertisers advertising online?
It’s interesting to note that the biggest advertisers on offline media in Vietnam aren’t the
most proactive Internet marketers at this stage. Aside from Unilever, the top 10 offline
advertisers are well down in the ranks of online advertisers.
Biggest offline advertisers online ad spending ranking (April 2010 – March 2011).
OFFLINE RANK BIGGEST OFFLINE ADVERTISERS ONLINE RANK
1 UNILEVER VIETNAM 5
2 P&G VIETNAM Co. Ltd. 146
3 TAN HIEP PHAT Beverage Group 162
4 MASAN Food Corp 450
5 VINAMILK CORPORATION 70
6 FRIESLAND CAMPINA VIETNAM 48
7 PEPSICO VIETNAM 297
8 AJINOMOTO VIETNAM Ltd. 751
9 COCA-COLA VIETNAM Ltd. 24
10 UNILEVER Bestfoods & ELIDA P/S (VietNam) Ltd. 115
Which sectors are advertising online?
Given the number of telecommunication and transportation companies amongst the
biggest online spenders it’s unsurprising that telecommunications is by far the biggest
spending sector online.
10 biggest spending sectors online (April 2010 – March 2011).
$4.5 $4.2
Millions
$4.0
$3.5
$2.8
$3.0
$2.5 $2.1 $2.1 $2.1
$2.0 $1.6 $1.5 $1.4 $1.3
$1.5 $1.1
$1.0
$0.5
$0.0
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14. …and how does their online advertising compare to offline?
The clothing, apparels and textiles sector followed by IT and office technology are the most
proactive online advertising sectors (in comparison to offline). These sectors are spending up to
7 times more on Internet advertising than average. Food, hygiene and beauty and household
cleaning are the most active advertising sectors in Vietnam, but at this stage they are using their
spending power sparingly on the Internet. Now that the majority of urban Vietnamese are online
it will become increasingly important for these advertising giants to increase their online
presence.
Sector share of all advertising spend online compared to offline (includes TV, Press, Radio)
(April 2010 – March 2011)
ONLINE OFFLINE
TELECOMMUNICATION 16% 4%
TRANSPORTATION 11% 3%
CLOTHING - TEXTILES 8% 1%
DISTRIBUTION 8% 2%
FINANCE - INSURANCE 8% 2%
HYGIENE & BEAUTY 6% 19%
IT & OFFICE TECHNOLOGY 6% 1%
TRAVEL & TOURISM 5% 1%
EDUCATION - TRAINING 5% 1%
FOOD 4% 22%
PROPERTY 4% 1%
PHARMACY & MEDICINE 3% 7%
HOUSEHOLD APPLIANCES 3% 3%
AUDIO-VISUAL 2% 2%
INFORMATION MEDIA 2% 1%
DRINKS 2% 10%
FURNITURE & DECORATION 2% 1%
SERVICES 2% 1%
CULTURE & LEISURE 2% 0%
BUILDING INDUSTRY 1% 1%
HOUSEHOLD CLEANING 0% 11%
ENERGY 0% 0%
INDUSTRY 0% 0%
CHARITY-SPONSORSHIP 0% 0%
PUBLISHING 0% 0%
DIVERSE PUBLICITY 0% 3%
SPORT EQUIPMENT/ WEAR 0% 0%
AGRI-FISHERY-GARDERNING 0% 1%
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15. Where are the different sectors advertising?
While we know that the biggest news sites are attracting the lion’s share of online display
advertising, the biggest spending sectors have quite varied spending patterns. The clothing,
apparels and textiles sector spends almost entirely on news sites whilst the hygiene and beauty
and telecommunication sectors spend more evenly across all types of sites including the music
sites. VNExpress attracts a very high proportion of the spending from the finance/insurance and
transportation sectors while 24h is attracting a lot of the distribution and clothing, apparels and
textiles sectors’ advertising spend.
Table 12 – Sector spending share per site (April 2010 – March 2011).
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
TELECOMMUNICATION
TRANSPORTATION
CLOTHING - APPARELS - TEXTILES
DISTRIBUTION
FINANCE - INSURANCE
HYGIENE & BEAUTY
IT & OFFICE TECHNOLOGY
TRAVEL & TOURISM
EDUCATION - TRAINING
FOODS
VNEX 24H DTRI VNNET MP3 NGSAO TTRE TNIEN NVUI NHSo
Kantar Media Vietnam
Net Insights Report
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16. How do competitors compete in their online advertising activities?
Telecommunications:
Telecommunications is by far the most competitive advertising sector online, especially
the mobile carriers. Expenditure by telecommunications companies is quite widely
spread. In fact, Mobifone and Vinafone are the only 2 advertisers who have advertised
on all 10 of the sites monitored.
Table 13 – Telecommunications advertisers expenditure per site (April 2010 – March 2011).
VIETTEL
VNPT
NOKIA A.S.
VMS - MOBIFONE
VINAPHONE
$0 $200,000 $400,000 $600,000 $800,000 $1,000,000
VNEX 24H DTRI VNNET MP3 NGSAO TTRE TNIEN NVUI NHSo
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Net Insights Report
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17. Transportation:
Honda is by far the biggest transportation advertiser (and #4 spending overall). Unlike
telecommunications advertisers, Honda is the only company to advertise on a big scale
outside the big 3 sites (with zing.mp3). There is almost no ad spending from the biggest
transportation advertisers beyond the 5 biggest sites.
The car manufacturers Ford and Toyota also have completely different approaches.
Both use Dantri but Ford has invested heavily in promotion on 24h while Toyota has
spent the majority of their online budget with VNExpress.
Table 14 – Transportation sector advertisers advertising per site (April 2010 – March 2011).
SUZUKI
YAMAHA
PIAGGIO
HONDA
FORD
TOYOTA
$0 $100,000 $200,000 $300,000 $400,000 $500,000
VNEX 24H DTRI VNNET MP3 NGSAO TTRE TNIEN NVUI NHSo
Kantar Media Vietnam
Net Insights Report
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18. Kantar Media Vietnam’s Services
Building Media Momentum Together
Kantar Media is the one stop shop for media research in Vietnam. Our global
experience as part of the Kantar brand and our local expertise developed over more
than a decade in Vietnam allow us to key insights to the ever evolving media
environment.
Our syndicated and customized service offers can provide the answer to any media
question.
TAM (Television Audience Measurement) – TV is a very powerful medium in Vietnam.
We can tell you exactly what is being watched, who is watching it and when. Our in-
home measurement panels cover the 6 biggest cities and the 3 economic regions of
Vietnam.
MHS (Media Habits Survey) – The media landscape in Vietnam is vast and expanding.
The MHS brings it all together to provide a 360° single source understanding of ever
changing media habits in Vietnam.
Yahoo & Kantar Media Net Index – Vietnam’s deepest study of online behavior is
undertaken yearly in partnership between Yahoo and Kantar Media. Now in its third
year the study covers all key and developing areas of online behavior.
Media Intelligence – We are monitoring TV, radio, print, Digital OOH and now Internet
advertising 24 hours a day 365 days a year to provide continuous understanding of the
dynamic Vietnamese advertising environment.
Customized Media Research – Our media research experience and capabilities mean
we can solve any media research question.
To see how Kantar Media can provide vital insights to match your media needs contact
ClientServiceVN@kantarmedia.com.