Social Media Advertising - Vietnam

Vietnam

Highlights

In Vietnam, ad spending in the Social Media Advertising market market is projected to reach US$398.40m in 2024.
This ad spending is anticipated to exhibit an annual growth rate (CAGR 2024-2030) of 8.31%, leading to a projected market volume of US$643.40m by 2030.
In a global context, the majority of ad spending will be generated China, with an expected amount of US$84.65bn in 2024.
Within the Social Media Advertising market market in Vietnam, 73% of total ad spending is expected to be generated through mobile by 2030.
Furthermore, by 2030, the number of users in Vietnam's Social Media Advertising market market is anticipated to reach 98.4m users.
Vietnam's burgeoning digital landscape is driving innovative social media advertising strategies, as brands increasingly leverage local influencers to engage a youthful audience.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Social Media Advertising market in Vietnam has been experiencing significant growth in recent years.

Customer preferences: Vietnamese consumers are increasingly turning to social media platforms for entertainment, information, and social interaction. As a result, businesses are recognizing the value of advertising on these platforms to reach and engage with their target audience. Social media advertising allows companies to target specific demographics, interests, and behaviors, making it a highly effective and efficient marketing strategy. Additionally, social media platforms provide a variety of advertising formats, such as display ads, video ads, and sponsored content, allowing businesses to choose the format that best suits their marketing objectives.

Trends in the market: One of the key trends in the Social Media Advertising market in Vietnam is the growing popularity of mobile advertising. With the majority of Vietnamese consumers accessing social media platforms through their smartphones, mobile advertising offers a powerful way to reach and engage with the target audience. Mobile ads are often integrated seamlessly into users' social media feeds, ensuring high visibility and increasing the likelihood of user engagement. This trend is expected to continue as smartphone penetration and internet access continue to increase in Vietnam. Another trend in the market is the rise of influencer marketing. Vietnamese consumers are increasingly influenced by social media influencers who have large followings and credibility in specific niches. Businesses are leveraging this trend by partnering with influencers to promote their products or services on social media platforms. Influencer marketing allows businesses to tap into the influencer's audience and benefit from their trust and authenticity. This trend is particularly prevalent in industries such as beauty, fashion, and food.

Local special circumstances: Vietnam has a young and tech-savvy population, with a high percentage of internet users and active social media users. This demographic profile creates a favorable environment for the Social Media Advertising market to thrive. Additionally, Vietnamese consumers are highly active on social media platforms, spending a significant amount of time browsing and engaging with content. This high level of engagement presents businesses with ample opportunities to connect with their target audience through social media advertising.

Underlying macroeconomic factors: Vietnam's economy has been growing steadily in recent years, with rising disposable incomes and an expanding middle class. This economic growth has contributed to increased consumer spending and a growing demand for products and services. As businesses seek to capitalize on this growth, they are turning to social media advertising as an effective way to reach and engage with Vietnamese consumers. Furthermore, the government of Vietnam has been actively promoting digital transformation and e-commerce, creating a supportive environment for the Social Media Advertising market to flourish. In conclusion, the Social Media Advertising market in Vietnam is experiencing strong growth due to customer preferences for social media platforms, the popularity of mobile advertising, the rise of influencer marketing, the country's young and tech-savvy population, and underlying macroeconomic factors such as economic growth and government support for digital transformation. As businesses continue to recognize the value of social media advertising in reaching and engaging with Vietnamese consumers, the market is expected to further expand in the coming years.

Data coverage:

Data encompasses enterprises (B2B). Figures are based on social media advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers social media advertising generated by social networks or business networks such as Facebook, Tiktok, Instragram, Pinterest, and LinkedIn.

Modeling approach:

A combined top-down and bottom-up approach determines the market size. Starting with the top-down approach, we calculate global social media advertising by aggregating revenues from key players (Meta Platforms (Facebook and Instagram), ByteDance (Tiktok and Douyin), Twitter, Snapchat, and Microsoft (LinkedIn)). Followed by the bottom-up approach, we justify global, country, and region results using web traffic and the number of app downloads. Lastly, we distribute the results to each country individually with relevant indicators such as GDP, internet users, social media users, and digital consumer spending by country.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market. For instance, the S-curve function is well suited to forecast digital products due to the non-linear growth of technology adoption, whereas exponential trend smoothing (ETS) is more suited for projecting steady growth in traditional advertising markets.

Additional notes:

Data is modeled using current exchange rates. The impacts of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice per year in case market dynamics change.