HCM City (VNS/VNA) - More than 68 trillion VND (over 2.9 billion USD) is expected to bespent on media advertising by companies in Vietnam, with fast-movingconsumer goods (FMCG) manufacturers to make up the bulk of the spending.  

In its recent report, Kantar Worldpanel, a global company specialising inshoppers’ behaviour research, said: “It is very easy to appreciate whyadvertisers, media agencies and media owners continue to work tirelessly tobetter understand the media return on investment (ROI) of the dollars theyspend.” 

Isolating the impact of media on brands showed that the average impact of amedia campaign in the uplift for any FMCG brand is 4.5 percent of total salesduring a campaign.

The study also showed that more than a third of the people attracted to thebrand after seeing its advertising will be new shoppers, which will helpdetermine the success of any media campaign, it said.  

“As a result, getting the most out of any media investment starts with carefulplanning and accurate targeting of the target audience, be it potential newshoppers or existing shoppers for whom we want to increase loyalty.”

The media environment is changing rapidly with the rise of digital in Vietnam.Despite that, TV remains the most relevant touchpoint for FMCG shoppers in bothurban and rural areas.

Regarding the projected media spending for Vietnam, the report said that TVadvertising is expected to drop to 66 percent share of spending in 2018, whileonline could increase to 30 percent, reflecting that TV still offers thegreatest potential in terms of total exposure.

In rural areas, loudspeakers can reach 76 percent of key decision makers thanksto activities organised by the cultural centre of the commune who useloudspeakers to deliver social information, which can also include FMCGadvertising.

The study also pointed out that one of the most common ways to segment keytarget audience is by region, because in Vietnam, the culture and shoppingbehaviours of each region can differ significantly, due to historical reasonsand cultural background. And the same can be expected for media consumption.

HCM City skews slightly more towards traditional media channels, while Hanoi ismore skewed towards digital.

“Newspaper and magazine penetration is highest in HCM City with over a third ofkey decision makers reached by newspapers and almost a fifth by magazines – andif we add another filter to look at older decision makers, or the mostaffluent, these figures could soon rise to 40 percent or more,” it said.

While the reach of digital in HCM City was slightly higher, those in Hanoi werespending more time online. Hanoians spend on average 3.1 hours a day onlinecompared to 2.6 hours on TV, so digital channels can work well in Hanoi.

In rural areas, the southern part of Vietnam accounted for a greater proportionof digital media consumption. Again, though penetration was slightly lower thanin the Central or North, the amount of time spent online was higher, around 2.2hours per day compared to 2.1 hours for TV.-VNS/VNA