Crawling to the future - Vietnam Media scene

1
infocus
Ralf Matthaes
infocus & Associates
Crawling to the future
Vietnam’s shift in media spend and consumption

This slideshow is from a presentation at the M2 Marketing & Media events
in Ho Chi Minh City, Vietnam organized by ITV-Asia.com and VietnamBusiness.TV
To see videos from the events, interviews with speakers and
to get information on upcoming M2 - Marketing & Media Network events
Please visit VietnamBusiness.TV

Who is infocus & Associates?
infocus is a Competitive Intelligence Management / Brand Optimization and
implementation consultancy
Our Core FocusBased on need and expertise, TNS Consult shall partners with both
strategic & other industry experts to provide a holistic approach to client needs &
solutions
Based on need and expertise, infocus shall partner with both strategic & other
industry experts to provide a holistic approach to client needs & solutions.
3
Market entry /
feasibility / landscaping
Operational redesign /
transformation
Holistic market analysis
Consultative research
on retail / customer
commitment / B2B
Synergizing measuring /
monitoring services
Strategic planning &
implementation
6
5
4
3
2
1
Visit VietnamBusiness.TV
for business videos, news & research

A look into the past
4
infocus

A-T-L Media spend and growth 1996 - 2013
 Media spend has grown by roughly 25% year on year. However, the lion’s share has
been spend on TV adverting, garnering over 80% of total spend.
5
0
200
400
600
800
1000
1200
1400
1600
1996 2000 2004 2008 2012 2013
Total
TV
Others
(000000)

The interrelationship between “other A-T-L media”
 With the advent of technology both Print and Radio are rapidly loosing advertising
spend to Internet and other digital platforms
6
0
20
40
60
80
100
120
140
160
180
1996 2000 2004 2008 2012 2013
Print
Radio
Internet

Today’s media landscape
7
infocus

8
Advertising spend
 Even with the advent and high usage of internet, TV monopolizes media spend in
Vietnam, creating a mismatch between delivery and audience consumption.
Ad turnover by
US$ (Estimated)
Ad turnover by
US$
Media Type
(%) 2013 Vs 2012
Media Type 2014 2013 2013 (%)
TV 1,650,000,000 1,320,013,079 91.2 54.3
RADIO 2,000,000 1,654,463 0.1 42.7
Magazine 34,000,000 40,339,000 2.8 -9.4
Newspaper 53,000,000 58,316,065 4.0 0.4
Internet 30,000,000 26,841,530 1.8 -5.0%
Total 1,770,000,000 1,447,164,137 100% 46.6%
Source:

Why TV is King?
9
 Old Habits Die Hard – advertisers more comfortable with medium
 Majority targets are housewives, thus Media spend reflects this
 Lack of measurable R.O.I. for Internet, as Internet can not identify
consumer demographics…today!

10
19
37
77
58
29
44
64
50
37
62
47
31
2011 2014 2011 2014
2011 2014 2011 2014
2011 2014 2011 2014
Most used
Most entertaining
Will use more in
the future
Media characteristics:
Source: TNS VietCycle 2014
Shift in media consumption
 Television consumption in steep decline as consumers spending more time online.
 Advertisers will need to re-think allocation of marketing spend.

11
Top media channels – By region (%)
61
49
36
14 16 12 7 5
74
31 29
18
9 15 17
5
Urban Rural
TV
Internet/
Online
Newspaper
Mobile
phone
Social
media
Word of
mouth
Radio Magazines
The Urban vs Rural divide
Source: TNS VietCycle 2014
 Urbanites prefer; Internet, newspaper and social media
 Rural folks prefer: TV, mobile phone and radio
 Thus, different media mix strategies need to be applied to different regions

Internet as a support medium to fill the gaps
 Internet is a critical media medium as it tends to fill gaps in consumer connections
throughout the day, allowing for constant contact
0
10
20
30
40
50
60
70
80
TV
Internet
Print

Internet as a research tool
13
Source: TNS Digital life 2012
 Presently, outside of entertainment Internet is predominantly used for researching
potential purchases, not on line but to gain information before physical purchases
are made.
ENSURE YOU ARE DIGITAL

Example of Black Friday Internet behavior
Source: Vietnam E-commerce and Information Technology Agency 14
 3.5 million views = 8% of Internet
population
 550,000 accessing websites (15%)
 15 times higher than usual
 77% access by computer
 19% by mobile phone.
 Purchases reached 6,400 = 1.6%
 Valued at $370,000 =US $58.00/
Purchase
 Thus becomes clear, that while interest is there, money is not… YET!

Drivers of Growth
15
infocus

Vietnam’s youth
By 2021 – 15.5 million new
consumers enter the market
Source: VN GSO 2009, TNS analysis
% of population
 60% of Vietnam’s population is young enough to embrace Digital, but only 35% are
considered cashed up consumers.
 By 2021 - 55% shall be Digitally cashed up consumers, creating a digital explosion

GDP per capita evolution in USD
 Vietnam’s GDP doubled between 1995 & 2005 & again between 2005 and 2010,
but has slowed since 2011, but making overall media consumers more attractive
17
289
402
650
1,400
1,600
1,700
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
1995 2000 2005 2010 2,012 2013

18
66
44
Urban Rural
Internet penetration (% )
Source: VietCycle 2014
Reach and convergence of Digital
 Internet is becoming ubiquitous in urban Vietnam, challenging other media formats for
consumer attention, while smart phone penetration is also driving connectivity and
convergence.
42
35
27
19
Global Emerging
Asia
Vietnam
2013
Vietnam
2012
Smartphone Ownership (%)

What is Driving this crawling shift?
 Increased Reach
 66% urban penetration and 44% rural
 Increased wealth – GDP / capita / annum
 US $1,700 nationally and US $8,400 urban
 Increased Connectivity and Convergence
 Already over 30% smart phone penetration (2014)
 Cost of entry lower will drive mobile
 Most major print exists in Digital format
 Time, Internet has been in Vietnam for 15 years
 Demographics
 60% of population has grown up with internet as a staple (born 1974)
 All are hungry for information
19

Barriers to Growth
20
infocus
Hunting, Gathering… It’s so
hard to prioritize!

Barriers to growth
 More that half of netizens are under 25 and have limited incomes
 Still no validated or verified R.O.I. Measure
 Fragmentation of players and deliverables
21
“Those who understand the
benefits of on -line advertising,
do not have the power to
influence decision makers
today, while those in powers
are to busy figuring out how
their I-Phone works”
Famous
VN Ad
Exec
(

The future of media consumption
22
infocus

 Traditional market research spend is stagnant at 1.5%, while on-line related growth
is over 10%, showing advertisers shift in priorities
Source: ESOMAR 2014 report
23
Turnover in US$ billions 2012 2013 2012/13
GMR Outsell GMR Outsell growth (%)
Traditional market research 39.7 35.7 40.3 37.1 1.5
Online analytics 6.5 7.2 10.1
Management consultancies 4.8 5 3.6
IT & telecom research 3.3 3.6 7.5
Marketing reports & research 2.9 3.2 9.6
Social media communities 2 2.2 12.0
Web traffic measurement 0.92 0.99 7.6
Sample & panel providers 0.88 0.92 4.5
Media monitoring 0.54 0.54 0.2
Survey software 0.39 0.44 16.7
Web and social media research 0.28 0.31 10.0
Incremental turnover segments 22.51 24.4 8.4
Total value expanded market 58.2 61.5 5.6
Market research as a refection of media consumption globally

The future of media consumption
 By 2021 Digital shall have its place in the sun and will truly compete with TV,
especially streaming and the evolution of APPS, as netizens become mainstay
consumers
 R.O.I. Measurement will drive ad spend
 Reach & affordability will be 100%
24
“New technology,
demographic shifts in age,
and income, as well as reach
and cost of traditional media
will drive mobile and digital
to new heights”
ME!
…. And new law on advertising,
which repeals cap on ad spend
and allows for advertising to be a
tax deductible, will create mass
change in spend by July 2015

Thanks
ralf.matthaes@infcocusmekong.com
infocus & Associates
25

Crawling to the future - Vietnam Media scene

Empfohlen

Empfohlen

Weitere ähnliche Inhalte

Was ist angesagt?

Was ist angesagt? (20)

Andere mochten auch

Andere mochten auch (20)

Ähnlich wie Crawling to the future - Vietnam Media scene

Ähnlich wie Crawling to the future - Vietnam Media scene (20)

Mehr von VietnamBusinessTV

Mehr von VietnamBusinessTV (17)

Kürzlich hochgeladen

Kürzlich hochgeladen (20)

Crawling to the future - Vietnam Media scene