Vietnamese officials target a 6%-6.5% growth in the gross domestic product (GDP) and a US$3,900 GDP per capita by 2022 more than that of the previous year which accounted for an overall growth rate of 2.6% in 2021. Vietnam is also ranked in the top 5 PPI among 34 countries. According to the General Statistics Office of Vietnam, the producer prices increased to 104.39 points in the first quarter of 2022 from 104.33 points in the fourth quarter of 2021.
Vietnam is becoming a popular destination for international manufacturers. These included many factories from China and Japan that specialize in electronics, textiles, footwear, and spare parts, such as Hanwha, Foxcom, Lenovo, Nintendo, and Sharp, among others.
Vietnam has a population of young and energetic people. According to Statista, the population of Vietnam has reached over 98 million in 2021 among which more than half of the population is aged from 17 to 35 years. With more investment flows to Vietnam, it drives more jobs and income. It provides enriched soil for the development of the mobile and mobile internet industry.
What is the ad spending from the digital advertising industry in Vietnam in 2022?
According to the source Statista, ad spending in the digital advertising market in Vietnam is projected to reach US$1,114.00m in 2022. In the digital advertising market, 59% of total ad spending will be generated through mobile in 2026. The programmatic share in digital advertising spend in years 2021 and 2022 was 76% and 78% respectively and is expected to reach 87% in 2026.
How the OTT platforms are accelerating the economy in Vietnam?
With the growing internet penetration, Vietnam has experienced a boom in digital advertising. The digital advertising industry has become a multi-billion-dollar industry.
Many advertising formats saw the highest value growth rate within the Vietnamese market until video advertising overtook it as the fastest-growing digital advertising format in 2020. Video streaming has become the new norm for leisure time among internet users in Vietnam following the COVID-19 pandemic in 2020, which has led to higher growth for video ads compared to other formats.
Online video advertising is one of the important and emerging trends of advertising, a solution that overcomes one of the greatest barriers of mobile marketing by using images, sound, and motion to convey the brand’s story across multiple screen sizes. 71% of internet users in Vietnam watch online videos daily, 22% of internet users watch videos every week, 3% watch videos every month, and 1% less than a month, on average, 42% of respondents said they spent 2 hours on video streaming services, 23% spent 1 hour, 17% spent 3 hours, 10% spent 4 hours, and 7% spent 30 minutes on video streaming services according to the source iris marketing agency.
In the digital media category, video-on-demand accounted for the highest E-commerce expenditure growth in Vietnam in 2021, at 28.6 %, according to a report published by DataReportal. In that year, the country’s digital media spending increased by over 23%.
Several companies have launched subscription video on demand (SVOD) services in Vietnam. VieON, developed by Vietnamese media, is one of the most recent entrants to the market. FPT Play, used by 39% of consumers according to a Statista survey conducted in February 2020 is also popular. Netflix, Wetv, and iQiyi are also top OTT players to meet the increasing user appetite for downloading and streaming content over the Internet.
Statista projects that SVOD market value will increase by 28% in 2021 to reach US$162m and will grow further at a compound annual growth rate (CAGR) of almost 17% to exceed US$302m by 2025. By 2025, user penetration will rise to 7.4%, and revenue per user will reach US$28.75.
What has in the future for digital marketing in Vietnam?
Brands were forced to adapt and digitalize at a scale and pace they had never anticipated due to pandemic. Eight in ten merchants anticipate online sales to exceed half of their total sales within the next five years. With 81% of Vietnam’s digital merchants likely to increase their use of digital payment methods in the next one to two years, this is driving them to get tech-savvy.
In addition to automation, voice search, machine learning, and artificial intelligence have opened up a new side of digital marketing. As a result, we are embarking on a path of technology-based marketing that offers a unique and highly user-oriented solution.
MOCA is a global OEM aggregator and advertising innovator, focusing on the Asian market MOCA is collaborating with global top publishers for user acquisition, branding, and re-engagement advertising solutions. MOCA is dedicated to providing a cost-effective and customized solution for advertisers to maintain top-of-mind awareness within their target audience.