Digital advertising set to grow

Experts believe the trend of using digital advertising including online and mobile advertising will pick up in the near future.

According to Nguyễn Tiến Dũng, manager of the digital section of Maxus Việt Nam under GroupM, advertising on social networks has become a popular trend as many brands have deployed their advertising campaigns this way.

There are over 30 million Internet users in Việt Nam, of which 86% are using social networks, Dũng said at a seminar on advertising held by the Leading Business Club in Hồ Chí Minh City (HCMC) on Wednesday, adding that 81% of such social network users have the habit of sharing shopping activities with their friends.

Facebook is still the most popular social network in Việt Nam with around 14 million users, with 11 million users accessing the network through mobile phones.

Users spend an average of 40 minutes browsing this page daily.

Two actions that local Facebook users usually perform are to press the button “Like” and make comments, while in other developed markets, Facebook users often check in, meaning they inform their friends when they visit certain locations and upload pictures, Dũng remarked.

However, Dũng noted that it was not easy to make advertising on social networks and digital advertising effective.

Most local enterprises have made inconsiderable investments in digital advertising, which accounts for less than 5% of the total budget for marketing, he told the seminar.

Digital_AdsCustomers experience advertising via interactive technology on mobile phones

At the seminar, Phan Quốc Công, general director of the International Consumer Products Corporation (ICP), said that his firm began paying attention to advertising on the Internet some years ago due to the rising number of Internet users then.

The marketing budget at ICP is divided into the ratios of 70%, 20% and 10%, Công informed.

The 70% volume has been carried out on local media, especially television, and has proved its efficiency, while the 20% volume is set aside for new channels whose efficiency is measurable and the remainder is used for new campaigns but its efficiency has yet to be measured, he stated.

The fact that an advertising campaign of ICP on television costs US$1 million is normal, Công asserted.

But he said the cost would be only one-tenth, or around US$100,000, if the enterprise launched the campaign on the Internet, with the sum used for many different processes, ranging from creation and production to advertising.

Lê Hồ Mỹ Duyên, who is in charge of the high-end brands of ICP, argued that advertising on social networks should not be separated and that it should be integrated with plenty of other traditional channels, from television, newspapers, selling points to other related activities.

According to the market research company eMarketer, advertising sales on the Internet in Việt Nam was about US$26 million in 2012, making up 2.9% of the total sales of the whole market.

The firm expects advertising sales on the Internet of the nation to reach roughly US$32 million this year and US$45 million in 2015.

Advertising sales on local media in Việt Nam posted nearly VND11 trillion in the first half of this year, with television holding up to 92%, Kantar Media Việt Nam reports.

The figure, however, is exclusive of sales of digital advertising.

By HOÀNG PHI

Source: The Saigon Times Daily

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