The total turnover of the advertisement market still increased sharply in 2011. However, experts have noted that the growth of the market has been associated with the new media trends.
The Vietnamese advertisement market got 1.2 billion dollars in 2011, which meant a growth rate of 15 percent over the previous year. The growth rate was lower than the average rates of 25-30 percent seen in the previous consecutive years. Though the turnover increased, experts have pointed out that this would be a minus growth rate if comparing with the inflation rate.
In general, the market is quiet in the first months of the years, which is not a high sale season, while businesses are still planning their budgets for advertisement campaigns. However, the first quarter of 2012 witnessed a more dynamic kick-start than in the previous years.
The growth in the first quarter was attributed to the stable demand from the companies leading their production and business fields, such as food, drink, pharmacy, electronics manufacturers.
Though the total market turnover keeps increasing, a lot of relating enterprises have fallen into decay, because of the sharp increase of 20 percent in the number of newspapers and the number of TV channels. All the enterprises now have to compete fiercely in a small market, where the turnover increases slowly.
Television remains the most popular ad channel which has been holding 80 percent of the ad market share over the last many years. Meanwhile, e-newspapers and online channels have made a big leap in their development, print newspapers and radiobroadcasting have been in decline.
Commenting about this, Warwick Olds, Asian Strategy director of Riverorchid Group, believes that in fact, the media advertisement market would not get narrower. While some market segments could be narrowed or disappear, other segments would continue developing rapidly.
He said that this should be seen as a change and evolution rather than the decline.
He went on to say that communication firms should target new ideas which have high linkage. A growing tendency for the near future is that there would be a ramification which would target different specific segments. Besides, he has also anticipated the tendency of shifting from monologue to dialogue. The market would also witness the boom of digital communication, which would be led by social communication. These would be the biggest challenges for communicators.
Vu Kim Oanh, director of Fifth Media in Hong Kong, said that in previous years, in digital ads, clients mostly post ad pieces on some newspapers with high page views, while they now target social networks (like Facebook), forums and searching tools (Google).
According to Oanh, this shows that Vietnamese enterprises have been aware of the value of the community, thus pushing up the development of the market segment
The online ad turnover reached 35 million dollars in 2011, which is expected to rise to 60 million dollars in 2012 and to 100 million dollars in 2013. Though the turnover remains modest, experts have noted that online ads have developed very rapidly.
Experts have forecast that the online ad market would see the high growth rates of 50-100 percent per annum in the next many years and it would dominate over other traditional ad channels.
Currently, the costs of the ads on Internet are just equal to 1/10 of that on TV, and 1/4 on print papers. Meanwhile, it’s clear that the less costly ad channels would attract enterprises in the current context of the economic difficulties.
Oanh has also predicted that the ads on mobile phones would see rapid growth this year, saying that many companies are planning the “mobile marketing” since they can see the increasingly high number of mobile phone users.