Illustrative image (Photo: VNA) Hanoi (VNA) – Online advertising, as the first choice of firms and brands amid the pandemic, is thriving in Vietnam and could reach the milestone of 1 billion USD in revenue thisyear.
Accordingto the Vietnam Digital Marketing Trends 2021 report by Novaon, Vietnam’s onlinead market will continue growing during the 2020-2025 period, with a compoundannual growth rate of 21.5 percent. Despite the pandemic last year, online adrevenue still reached 820 million USD, which is forecast to rise to 955.7million USD this year.
Chairmanof the Clever Group Nguyen Khanh Trinh expressed his optimism about the annualgrowth of 10-20 percent in the sector.
Lastyear, Vietnam’s digital economy was worth 14 billion USD, which is forecast toreach 52 billion USD by 2025. In particular, e-commerce expanded by 46 percent as Vietnamese spend 3.5 – 4.2 hours per day on the internet, which gives an edge for the online advertising sector to earn 1 billion USD this year.
However,the sector also faces unfair competition with cross-border platforms likeFacebook and Google accounting for over 80 percent of online adsrevenue in Vietnam.
Atpresent, Facebook, Google Ads, YouTube and channels of key opinion leaders arethe first choices of domestic firms for online ads, which spent an average 17 percent of their revenue on digital marketing in 2020.
Statisticsshowed that only about 5 percent of firms do not or have yet to use Facebook fortheir marketing campaigns. Many others spent more than 50 percent of their online ads budget on Facebook instead of other channels.
NguyenDang Ngoc, Deputy Director of the VCCorp, said customers prefer using ad servicesby cross-border platforms because they do not have to fulfill taxation and feeobligations.
TheDecree No.38//2021/ND-CP regulating administrative fines in culture and ads,which took effect on June 1, 2021, is expected to fill gaps to promote faircompetition in the field, making it easier for domestic firms to win marketshare from foreign giants./.
