Online ad – the gold mine for foreign ad firms

Online advertisement is considered the goose that lays golden eggs.

However, the eggs have been collected by foreign ad firms, not Vietnamese.

Cimigo, a market survey firm, has found out from its survey conducted on 5800 people aged from 15 to 64 in 12 urban areas that the percentage of Internet users in Vietnam has been increasing very rapidly.

In 2003, only four percent Vietnamese people used Internet, while the figure jumped to 27 percent in 2007 and then to 35 percent in 2011.

With the rapid development of Internet services, online advertisement has become a lucrative soil for ad firms.

Great potentials

Currently, online advertisements in Vietnam have been mostly carried out through searching tools, or by putting logos or banners on the websites with high number of page views and high number of readers who could be the potential clients of the products or services, through emails or multi-media.

President of Tre Advertisement Firm Nguyen Quy Cap said online advertisement has been developing very rapidly with the turnover accounting for 2-3 percent of the total turnover of the whole advertisement industry.

According to Kantar Media, which conducted a survey in the period from April 2010 to March 2011, the online advertisement market has the total revenue of 26.4 million dollars, or 550 billion dong and 10 big websites.

However, the figures still do not truly reflect the actual turnover of the market, because it’s very difficult to calculate the turnover of websites, including online game websites.

Nguyen Trung Thang, Director of Masso Group, said that Masso has been using online ads for the last three years with the budget increasing steadily by tens or 100 percent year on year.

For a long time, putting ad pieces on TV has been the top choice of all brands, even though this is very costly.

It is because producers believe that TV always has a big audience, which allows their products to be better known to consumers.

However, experts have pointed out that it’s not easy to attract consumers to watch ad clips on TV nowadays, amid the boom of domestic and foreign TV channels.

Meanwhile, online advertisement can show its big advantages which traditional ad channels do not have.

For example, online ads allow producers to better understand the tastes of consumers, so that they can change their business strategies to satisfy consumers’ demand.

Most importantly, online ad is not as expensive as TV ad.

Vietnamese businesses jump into online ad sector

According to Do Kim Dung, Head of the Advertisement Research and Training Institute ARTI, President of An Tiem Ad Firm, said that the enterprises in Vietnam have begun paying attention to online ads and got ready to pay for the ad services.

However, this still does not mean that Vietnamese ad firms can grab the opportunities.

Vietnamese enterprises, which could be the clients of Vietnamese ad firms, still favour traditional ad channels.

Meanwhile, foreign enterprises, which prove to be the most potential clients, only use foreign services.

Some big foreign ad firms, which anticipated the great potentials of the Vietnamese online ad market, have “conquered” the market.

One of them is TBWA belonging to Omnicom, which is considered as very powerful in digital media.

According to Thang, like in traditional ad channels, Vietnamese ad firms remain not capable enough to penetrate deeply into the online market.

The limitations in labor force and technology have been the biggest obstacles for domestic ad firms, because of which they have to stay outside the lucrative market.

Source: NLD

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