[Online Ads] Top Online Mkt Spenders (p. 12, 13,14,15))

NET INSIGHTS REPORT

2011

Kantar Media Vietnam Net Insights Report

2

About this report:

Kantar Media is shedding light on the fast growing Internet advertising industry in

Vietnam. The industry is definitely aware of the potential of online advertising but

currently marketers lack the reliable and transparent information they have in traditional

media fields.

We have been conducting Vietnam’s original in-depth study of online behavior – the

Yahoo & Kantar Media Net Index – for the past 3 years. This year’s survey was

conducted face to face in 4 key cities (Ho Chi Minh, Ha Noi, Da Nang and Can Tho)

with a sample size of 1,500 respondents. Net Index respondents are representative of

the urban population aged between 15-54 years old.

As a pilot project we have carried out continuous advertising monitoring of 10 key

websites in the Vietnamese market for 12 months (1st April 2010 - 31st March 2011).

The purpose of this monitoring is to gain an understanding of the current state of the

online advertising industry in Vietnam. Our online monitoring staff visit 10 selected sites

and record the advertising content on each site. The dynamic nature of online

advertising means that manual monitoring is not the ultimate solution but it does provide

a great overview of the advertising scene. This is why we have decided to release

these findings.

The 10 sites that have been monitored are:

www.24h.com.vn (24h)

www.dantri.com.vn (DTRI)

www.ngoisao.net (NGSAO)

www.nhacso.net (NHSo)

www.nhac.vui.vn (NVUI)

www.thanhnien.vn (TNIEN)

www.tuoitre.vn (TTRE)

www.vietnamnet.vn (VNNET)

www.vnexpress.com.vn(VNEX)

www.mp3.zing.vn (MP3)

Where offline advertising has been referred to in comparison with online advertising

offline refers to all monitored TV channels, radio stations, newspapers and magazines.

At this time there are no available estimates of spending on OOH, direct marketing and

other marketing activities.

The objective of this report is to shed some light on the development of the Internet and its users in Vietnam. Everyone, from site owners, advertisers and agencies to the users themselves know that the Internet in Vietnam is growing rapidly. What is needed now is

clear actionable understanding of just what is happening online.

Please contact [email protected] for any further information

about this report or our current and proposed services.

http://www.24h.com.vn/

http://www.dantri.com.vn/

http://www.ngoisao.net/

http://www.nhacso.net/

http://www.nhac.vui.vn/

http://www.thanhnien.vn/

http://www.tuoitre.com.vn/

http://www.vietnamnet.vn/

http://www.vnexpress.com.vn/

http://www.mp3.zing.vn/

mailto:[email protected]


3

Report Contents

Executive summary .................................................................................. 4

On the surface ........................................................................................... 5

How much is being spent on online display advertising? ............................................... 5

Where is online advertising expenditure going? ............................................................. 5

How does online advertising activity vary throughout the year? .................................... 6

What share of total advertising expenditure is spent online? ......................................... 7

Who is using the Internet? ............................................................................................... 8

How are people accessing the Internet? ......................................................................... 9

How often are Internet users online? .............................................................................. 9

Going deeper........................................................................................... 10

What are people doing online? ...................................................................................... 10

Who’s visiting? ............................................................................................................... 11

Who is advertising online? ............................................................................................. 12

How are the biggest offline advertisers advertising online? ......................................... 13

Which sectors are advertising online? .......................................................................... 13

…and how does their online advertising compare to offline?....................................... 14

Where are the different sectors advertising? ................................................................ 15

How do competitors compete in their online advertising activities? ............................. 16

Telecommunications: .................................................................................................... 16

Transportation: .............................................................................................................. 17

Kantar Media Vietnam's Services ........................................................... 18


4

Executive summary

Total monitored spend on 10 biggest display advertising sites in Vietnam was

$26,316,500 (US) (April 2010-March 2011).

Display advertising on the Internet made up a 3.5% share of all advertising

expenditure over the monitoring period.

Display advertising on the Internet is growing but it doesn’t reflect the high

reach the Internet is achieving in Vietnam relative to offline media types.

Internet penetration has grown across all ages between 2010 and 2011. Over ½ of

all urban residents of Vietnam’s 4 biggest cities are now online regularly.

Youths are driving the growth of internet penetration in Vietnam.

The 3 main emerging online usage trends this year are the increased the usage of

social networks and online gaming and the growth of mobile access.

VNExpress is the leading website in terms of advertising expenditure on the site.

Advertisers spent $7.8 million (US) on the site during the monitoring period.

Vinaphone is the biggest online advertiser followed by 2 other telecommunications

sector advertisers. Vinaphone spent $1.1 million (US) on display Internet

advertising during the monitoring period.

Telecommunications is the biggest spending sector online. Telecoms spent $4.2

million (US) on display Internet advertising during the monitoring period.

Some of the biggest, strongest and most proactive offline advertisers are almost

invisible online.


5

On the surface How much is being spent on online display advertising?

In the 12 months until March 31st 2011 there was $26,316,500 (US) of display

advertising monitored on the 10 sites. It’s important to note that this figure doesn’t take

into account any discounts on rate card prices of the insertions monitored.

Where is online advertising expenditure going?

VNExpress is clearly the strongest performing website in terms of attracting advertising

dollars. Vietnamese Internet-goers’ thirst for online news is highlighted by the fact that

the top 4 ranked sites are all news sites. It’s going to be interesting to see whether

growth in entertainment, socializing and mobile access alter the balance of online ad

spend in the coming years.

Advertising expenditure per site (April 2010 – March 2011)

.

$7.8

$5.8

$4.3

$2.6$2.1

$1.5$1.0

$0.5 $0.5 $0.3

$0

$1

$2

$3

$4

$5

$6

$7

$8

VNEX 24H DTRI VNNET MP3 NGSAO TTRE TNIEN NVUI NHSo

Mill

ion

s


6

Not only are those the top four sites news sites (VNExpress, 24h, Dantri and

Vietnamnet), they also account for over 75% of the advertising expenditure across the 10

monitored sites.

Share of online advertising expenditure per site (April 2010 – March 2011)

How does online advertising activity vary throughout the year?

There’s a definite upwards trend in online spend as well as the share of overall

advertising going online across the 12 month monitoring period. These figures support

industry estimates that have placed Internet spending at around 1-2% in 2009 and

somewhere around 3% in 2010.

Ad expenditure by month and the online share of all advertising expenditure (April 2010 – March 2011)

30%

22%16%

10%

8%

5%4%

2% 2% 1%

VNEX

24H

DTRI

VNNET

MP3

NGSAO

TTRE

TNIEN

NVUI

NHSo

0%

1%

2%

3%

4%

5%

6%

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

APR '10

MAY '10

JUNE '10

JULY '10

AUG '10

SEP '10

OCT '10

NOV '10

DEC '10

JAN '11

FEB '11

MAR '11

NET ADEX ($ MILLIONS) SHARE OF ALL ADEX (%)


7

The dip in the early months of 2011 is not exclusive to the online advertising industry. It

is shown across the industry around the new year (Tet) period and was displayed

across all the media types.

Advertising expenditure by media type (April 2010 – March 2011)

What share of total advertising expenditure is spent online?

It’s clear that advertisers world-wide are increasing their focus on digital advertising.

Vietnam is no different although the process is still in its primitive stages. As Table 4

and Table 5 (next page) show, spending on display advertising is still a relatively small

share of the overall advertising spend. TV is the advertising king in Vietnam and this

isn’t going to change any time soon but Internet is definitely starting to develop its

share.

Table – Share of advertising (April 2010-March 2011)

$0

$10

$20

$30

$40

$50

$60

AP

R '1

0

MA

Y '1

0

JUN

E '1

0

JULY

'10

AU

G '1

0

SEP

'10

OC

T '1

0

NO

V '1

0

DEC

'10

JAN

'11

FEB

'11

MA

R '1

1

Mill

ion

s

INTERNET TV NEWSPAPERS MAGAZINE RADIO

3.5%

79.7%

10.3%6.2%

0.2%

INTERNET

TV

NEWSPAPERS

MAGAZINE

RADIO


8

0

20

40

60

80

100

15-19 20-24 25-29 30-34 35-39 40+

Internet

TV

Radio

Newspaper

Magazine

Who is using the Internet?

Vietnam’s young and developing population coupled with improved Internet accessibility

have helped Internet penetration in Vietnam become amongst the strongest in the

South East Asian region.

Media reach in the past week (%) by age. Source-MHS 2010 52 week fieldwork, 4 cities.

The costs of internet access mean that its only natural to expect the higher socio-

economic levels (SEL) to be more likely to be internet users. There are a higher

proportion of upper SEL ranked people using the Internet than any other media type

and far fewer members SEL 4 (bottom 40% socio-economic classification of the

population). SEL represents both durable items owned and highest level of education.

It’s considered a far more reliable estimate of spending power in Vietnam due to the

sensitive nature of income related questions.

21

10

13

17

8

34

20

23

29

18

36

30

35

40

33

9

40

30

15

41

INTERNET

TV

NEWSPAPER

MAGAZINE

RADIO

SEL1 SEL2 SEL3 SEL4


9

How are people accessing the Internet?

There is a definite shift to private access. Better access to Internet connection, cheaper computers and mobile devices are all contributing to Vietnamese citizens’

ability to get online on their own terms. The growth of mobile access is strongest in the smaller cities of Da Nang and especially Can Tho where traditional access can be more difficult than in the 2 biggest cities.

How often are Internet users online?

The Internet has become the second most accessed media type on a daily basis behind

TV. Over 70% of Internet users claimed to have been online yesterday. Not only are Internet users going online more often they’re seemingly very highly engaged. More than 80% of people who accessed the Internet yesterday agree that “when I need

information the first place I look is the Internet”. Accessed media type yesterday (%) – Based on Kantar Media MHS Survey 4 city survey Week 1-52 2010

95

40

6

23

42

TV NEWSPAPER MAGAZINE RADIO INTERNET

75

13

29

18

42

1219

88

17

28

13

36

13

30

2010 2011


10

Going deeper

What are people doing online?

Whilst the most popular online activities in Vietnam – search, keep up to date, communicate one-to-one - remain popular with almost all users, there are some significant increases in the usage of social networks, using mobile devices to access the internet and online gaming.

0

10

20

30

40

50

60

70

80

90

100

Po

rtal

Sear

ch

Ne

ws

Emai

l

IM

Soci

al n

etw

ork

Foru

m

Blo

g

UG

C

Pu

rch

ase

Mo

bile

Gam

ing

2010 2011


11

Who’s going where?

Advertisers’ decisions are not just based on absolute reach, but also the ability of a site

to reach their specific target market. The bigger news sites generally attract older than average males. Each of the music sites attracts a younger audience. MHS results provide site level analysis so all users of the Zing family of sites (Zingme, Zing MP3,

Zing News etc) are aggregated in this analysis.

ZINGALL SITES

DTRIVNEX

TTRE

24H

NGSAO

VNNET

TNIEN

NVUI

NHSO


12

Who is advertising online? Online advertising top spenders (April 2010-March 2011)

Online advertising is a growing market but it’s being pushed hardest by specific sectors.

Just by scanning the top 20 online advertisers you will notice an abundance of

telecommunication (5) and transportation companies (6).

$1,071

$8

03

$7

66

$5

22

$4

02

$3

53

$3

49

$338

$295

$2

89

$2

82

$2

65

$2

39

$2

27

$2

23

$2

18

$2

12

$2

11

$2

11

$197

$0

$200

$400

$600

$800

$1,000

$1,200

Th

ou

san

ds


13

How are the biggest offline advertisers advertising online?

It’s interesting to note that the biggest advertisers on offline media in Vietnam aren’t the

most proactive Internet marketers at this stage. Aside from Unilever, the top 10 offline

advertisers are well down in the ranks of online advertisers.

Biggest offline advertisers online ad spending ranking (April 2010 – March 2011).

OFFLINE RANK BIGGEST OFFLINE ADVERTISERS ONLINE RANK

1 UNILEVER VIETNAM 5

2 P&G VIETNAM Co. Ltd. 146

3 TAN HIEP PHAT Beverage Group 162

4 MASAN Food Corp 450

5 VINAMILK CORPORATION 70

6 FRIESLAND CAMPINA VIETNAM 48

7 PEPSICO VIETNAM 297

8 AJINOMOTO VIETNAM Ltd. 751

9 COCA-COLA VIETNAM Ltd. 24

10 UNILEVER Bestfoods & ELIDA P/S (VietNam) Ltd. 115

Which sectors are advertising online?

Given the number of telecommunication and transportation companies amongst the

biggest online spenders it’s unsurprising that telecommunications is by far the biggest

spending sector online. 10 biggest spending sectors online (April 2010 – March 2011).

$4.2

$2.8

$2.1 $2.1 $2.1

$1.6 $1.5 $1.4 $1.3$1.1

$0.0

$0.5

$1.0

$1.5

$2.0

$2.5

$3.0

$3.5

$4.0

$4.5

Mil

lio

ns


14

…and how does their online advertising compare to offline? The clothing, apparels and textiles sector followed by IT and office technology are the most

proactive online advertising sectors (in comparison to offline). These sectors are spending up to

7 times more on Internet advertising than average. Food, hygiene and beauty and household

cleaning are the most active advertising sectors in Vietnam, but at this stage they are using their

spending power sparingly on the Internet. Now that the majority of urban Vietnamese are online

it will become increasingly important for these advertising giants to increase their online

presence.

Sector share of all advertising spend online compared to offline (includes TV, Press, Radio) (April 2010 – March 2011)

16%

11%

8%

8%

8%

6%

6%

5%

5%

4%

4%

3%

3%

2%

2%

2%

2%

2%

2%

1%

0%

0%

0%

0%

0%

0%

0%

0%

4%

3%

1%

2%

2%

19%

1%

1%

1%

22%

1%

7%

3%

2%

1%

10%

1%

1%

0%

1%

11%

0%

0%

0%

0%

3%

0%

1%

TELECOMMUNICATION

TRANSPORTATION

CLOTHING - TEXTILES

DISTRIBUTION

FINANCE - INSURANCE

HYGIENE & BEAUTY

IT & OFFICE TECHNOLOGY

TRAVEL & TOURISM

EDUCATION - TRAINING

FOOD

PROPERTY

PHARMACY & MEDICINE

HOUSEHOLD APPLIANCES

AUDIO-VISUAL

INFORMATION MEDIA

DRINKS

FURNITURE & DECORATION

SERVICES

CULTURE & LEISURE

BUILDING INDUSTRY

HOUSEHOLD CLEANING

ENERGY

INDUSTRY

CHARITY-SPONSORSHIP

PUBLISHING

DIVERSE PUBLICITY

SPORT EQUIPMENT/ WEAR

AGRI-FISHERY-GARDERNING

ONLINE OFFLINE


15

Where are the different sectors advertising?

While we know that the biggest news sites are attracting the lion’s share of online display

advertising, the biggest spending sectors have quite varied spending patterns. The clothing,

apparels and textiles sector spends almost entirely on news sites whilst the hygiene and beauty

and telecommunication sectors spend more evenly across all types of sites including the music

sites. VNExpress attracts a very high proportion of the spending from the finance/insurance and

transportation sectors while 24h is attracting a lot of the distribution and clothing, apparels and

textiles sectors’ advertising spend.

Table 12 – Sector spending share per site (April 2010 – March 2011).

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

TELECOMMUNICATION

TRANSPORTATION

CLOTHING - APPARELS - TEXTILES

DISTRIBUTION

FINANCE - INSURANCE

HYGIENE & BEAUTY

IT & OFFICE TECHNOLOGY

TRAVEL & TOURISM

EDUCATION - TRAINING

FOODS



16

How do competitors compete in their online advertising activities?

Telecommunications:

Telecommunications is by far the most competitive advertising sector online, especially

the mobile carriers. Expenditure by telecommunications companies is quite widely

spread. In fact, Mobifone and Vinafone are the only 2 advertisers who have advertised

on all 10 of the sites monitored.

Table 13 – Telecommunications advertisers expenditure per site (April 2010 – March 2011).

$0 $200,000 $400,000 $600,000 $800,000 $1,000,000

VINAPHONE

VMS - MOBIFONE

NOKIA A.S.

VNPT

VIETTEL



17

Transportation:

Honda is by far the biggest transportation advertiser (and #4 spending overall). Unlike

telecommunications advertisers, Honda is the only company to advertise on a big scale

outside the big 3 sites (with zing.mp3). There is almost no ad spending from the biggest

transportation advertisers beyond the 5 biggest sites.

The car manufacturers Ford and Toyota also have completely different approaches.

Both use Dantri but Ford has invested heavily in promotion on 24h while Toyota has

spent the majority of their online budget with VNExpress.

Table 14 – Transportation sector advertisers advertising per site (April 2010 – March 2011).

$0 $100,000 $200,000 $300,000 $400,000 $500,000

TOYOTA

FORD

HONDA

PIAGGIO

YAMAHA

SUZUKI


Kantar Media Vietnam’s Services

Building Media Momentum Together

Kantar Media is the one stop shop for media research in Vietnam. Our global

experience as part of the Kantar brand and our local expertise developed over more

than a decade in Vietnam allow us to key insights to the ever evolving media

environment.

Our syndicated and customized service offers can provide the answer to any media

question.

TAM (Television Audience Measurement) – TV is a very powerful medium in Vietnam.

We can tell you exactly what is being watched, who is watching it and when. Our in-

home measurement panels cover the 6 biggest cities and the 3 economic regions of

Vietnam.

MHS (Media Habits Survey) – The media landscape in Vietnam is vast and expanding.

The MHS brings it all together to provide a 360° single source understanding of ever

changing media habits in Vietnam.

Yahoo & Kantar Media Net Index – Vietnam’s deepest study of online behavior is

undertaken yearly in partnership between Yahoo and Kantar Media. Now in its third

year the study covers all key and developing areas of online behavior.

Media Intelligence – We are monitoring TV, radio, print, Digital OOH and now Internet

advertising 24 hours a day 365 days a year to provide continuous understanding of the

dynamic Vietnamese advertising environment.

Customized Media Research – Our media research experience and capabilities mean

we can solve any media research question.

To see how Kantar Media can provide vital insights to match your media needs contact

[email protected].

mailto:[email protected]

Documents

[Online Ads] Top Online Mkt Spenders (p. 12, 13,14,15))