KANTARMEDIANETINSIGHTSREPORT1

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NET INSIGHTS REPORT 2011

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 Vietnams original in-depth study of online behavior the Yahoo & Kantar Media Net Index for the past 3 years. This years 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.thanhnien.vn (TNIEN) www.dantri.com.vn (DTRI) www.tuoitre.vn (TTRE) www.ngoisao.net (NGSAO) www.vietnamnet.vn (VNNET) www.nhacso.net (NHSo) www.vnexpress.com.vn(VNEX) www.nhac.vui.vn (NVUI) 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 Clientservice.VN@kantarmedia.com for any further information about this report or our current and proposed services.Kantar Media Vietnam Net Insights Report 2

Report ContentsExecutive summary .................................................................................. 4 On the surface........................................................................................... 5How 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........................................................................................... 10What are people doing online? ...................................................................................... 10 Whos 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? ............................. 16Telecommunications: .................................................................................................... 16 Transportation: .............................................................................................................. 17

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

Kantar Media Vietnam Net Insights Report 3

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 doesnt 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 of all urban residents of Vietnams 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.

Kantar Media Vietnam Net Insights Report 4

On the surfaceHow 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. Its important to note that this figure doesnt 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. Its 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.$8 $7 $6 $5 $4 $3 $2 $1 $0 Millions 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

VNEX

24H

DTRI VNNET MP3 NGSAO TTRE TNIEN NVUI NHSo

.

Kantar Media Vietnam Net Insights Report 5

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 10monitored sites.Share of online advertising expenditure per site (April 2010 March 2011) 2% 2% 1% VNEX 4% 5% 24H DTRI VNNET MP3 10% NGSAO

30% 8%

TTRE16% 22% TNIEN NVUI NHSo

How does online advertising activity vary throughout the year? Theres 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) $4,000,000 $3,000,000 6% 5%

4%$2,000,000 $1,000,000 1% $0 APR '10 MAY JUNE JULY '10 '10 '10 AUG '10 SEP '10 OCT '10 NOV '10 DEC '10 JAN '11 FEB '11 MAR '11 0% 3% 2%

NET ADEX ($ MILLIONS)

SHARE OF ALL ADEX (%)

Kantar Media Vietnam Net Insights Report 6

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) Millions $60 $50 $40 $30 $20 $10 $0 MAY '10

JULY '10

AUG '10

APR '10

DEC '10

JUNE '10

NOV '10

OCT '10

JAN '11

FEB '11

SEP '10

INTERNET

TV

NEWSPAPERS

MAGAZINE

RADIO

What share of total advertising expenditure is spent online? Its 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 isnt going to change any time soon but Internet is definitely starting to develop its share.Table Share of advertising (April 2010-March 2011) 10.3%

6.2% 0.2%3.5% INTERNET TV NEWSPAPERS MAGAZINE

79.7%

RADIO

Kantar Media Vietnam Net Insights Report 7

MAR '11

Who is using the Internet? Vietnams 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 a