Vietnam’s digital landscape is growing and this is a big opportunity for brands.
Internet penetration is 35.6%. The We Are Social / Cimigo reports have shown that more Vietnamese are going online on desktop and mobile, especially youths, and less on TV. 52% of Vietnamese consumers watch video online daily.
Mobile penetration is high at almost 145%. However only about 36% (or about 33 mil) are using smartphones – ie 3G subscribers. Cheaper smartphones in recent years have contributed to this rapid growth.
Chat apps (Zalo is the largest with over 22mil subscribers), online / mobile games (locally produced games are aplenty especially after the Flappy Bird success) and online commerce (e-shopping like Lazada, Tiki, Adayroi & e-bookings like GrabTaxi, Uber) have become popular as a result.
All these new digital channels spell more opportunities for advertisers to reach out to more people.
With online tracking technologies and lots of user data collected from how consumers use digital channels (behavior, interests, location, etc), digital advertising is becoming more important for brands to market their brands more effectively and on an individual basis based on needs.
So there is no denying that if advertisers want to further reach out and convince a bigger target audience beyond TV, then digital (online, social, mobile) is the way to go. Being present in digital alone is not enough. Digital channels allow engagements (2-way interactions) which traditionally TV doesn’t allow. Advertisers should fully take advantage of this.
Media (and creative) agencies should start to play a big role in fulfilling advertisers’ needs to market their products in the most optimal way; and that is through digital channels. After all, most consumers who make purchase decisions “live” online and online is the best place to reach out to them.
This in turn gives rise to opportunities for publishers and ad networks (like Admob, Admicro) to develop more creative digital advertising inventories to suit the different needs of the different advertisers. However, advertisers should be more creative to stand out from the clutter of online ads.
A snapshot of the general consumer’s online journey as follows:
– heard about it / saw on TV
– will go google or Facebook it
(Alternatively, consumers may see our online or mobile advertisements and click on them)
– a click through will land user on the campaign page (website, microsite, mobile site, facebook page, etc)
– user also does research about your product vs competitors… Again Google search.
– user reads in forums for recommendations from peers or others; and user also compares prices / specs / nutrition information etc to find the best
– user finds out where to go and buy
– user goes to retail shop (offline)
** if brands have an online shop, it will be better as users can purchase immediately (from experience, online to offline has high drop outs, and will make your digital ROI low, unless the product is irresistible).