Vietnam’s digital marketing industry is experiencing rapid expansion, driven by increasing internet penetration, mobile-first consumers, and a thriving e-commerce sector. With a projected advertising market value of $2.74 billion USD in 2024, Vietnam has become a key player in Southeast Asia’s digital transformation. This article explores the financial aspects, social media impact, traditional media relevance, consumer behavior, and the future of digital marketing in the country.

The Financial Growth of Digital Advertising

Vietnam’s advertising industry is undergoing a major shift, with digital advertising expected to account for 59% of total ad spending by 2029. Key financial statistics include:

• TV and Video Advertising: The dominant segment, with $1.24 billion USD in spending
• Search Advertising: Estimated at $480 million USD in 2023, highlighting its role in immediate visibility and lead generation
• Influencer Marketing: Brands invested $75 million USD in 2023, leveraging the growing power of KOLs (Key Opinion Leaders)
• Digital Banner Advertising: Accounted for $342 million USD in 2023, remaining a major component of online promotions

Social Media’s Influence on Marketing

With 70% of Vietnam’s population actively using social media, digital platforms have become indispensable for marketing strategies. The most influential platforms include:

• Facebook: Still the leading social network, widely used for e-commerce and brand marketing
• TikTok: A major force in short-form video marketing and livestream commerce
• YouTube: The second most-used search engine in Vietnam, popular for long-form content marketing
• Zalo: Vietnam’s homegrown social app, crucial for localized brand engagement

The Role of Out-of-Home (OOH) and Traditional Media

Despite digital growth, traditional advertising still holds significance:

• OOH Advertising: Spending reached $87 million USD in 2023, with billboards and transit ads remaining effective in urban centers
• Print Advertising: Declining but still relevant, with $28 million USD spent in 2023
• Audio Advertising: Gaining momentum via podcasts and music streaming, generating $22 million USD in ad spend
• TV Advertising: Retains a 50% market share, with brands spending nearly $1 billion USD in 2023

Consumer Behavior Trends Driving Marketing Strategies

Vietnamese consumers are increasingly digital-first, with emerging trends shaping marketing approaches:

• Mobile-First Engagement: Over 70% of internet traffic comes from mobile devices, emphasizing the need for mobile-optimized campaigns
• E-commerce Boom: Platforms like Shopee, Lazada, and TikTok Shop are driving online retail growth at 25-30% annually
• Livestream Shopping: Generates conversion rates of 10-20%, making it a critical tool for brands
• Digital Payments Rise: Although cash-on-delivery remains popular, digital wallets like MoMo and VNPay are seeing wider adoption

Competitive Landscape and Industry Insights

Vietnam’s marketing industry is a mix of local expertise and global influence:

• Local Agencies: Companies like Đất Việt VAC dominate the domestic market
• International Firms: Agencies like Ogilvy, WPP, and Publicis play a key role in large-scale digital campaigns
• Industry-Specific Spending:
  • FMCG: The biggest advertising spender, focusing on TV and social media
  • Tech & E-commerce: Invests heavily in performance marketing and AI-driven campaigns
  • Luxury & Automobile Brands: Rely on traditional advertising and experiential marketing

The Future of Digital Marketing in Vietnam

As AI, automation, and personalization become more prominent, Vietnam’s marketing industry is evolving rapidly:

• AI-Powered Campaigns: Predictive analytics and chatbot-driven marketing are streamlining customer interactions
• Short-Form Video Dominance: TikTok and YouTube Shorts are becoming essential tools for brand engagement
• Personalization & Data-Driven Strategies: Brands are increasingly using AI to deliver tailored content and ads
• Regulatory Developments: Data privacy laws are expected to shape the digital marketing landscape further

Conclusion

Vietnam’s digital marketing industry is in a state of rapid transformation, balancing traditional advertising with innovative digital strategies. With social media dominance, the rise of e-commerce, and AI-driven marketing, businesses must adapt to the shifting landscape to remain competitive. As Vietnam’s economy and digital ecosystem continue to grow, brands that leverage data-driven insights, mobile-first approaches, and localized content will thrive in this dynamic market.