Market Insights Advertising & Media Advertising TV & Video Advertising

Traditional TV Advertising - Vietnam

Vietnam

Ad spending in the Traditional TV Advertising market in Vietnam is forecasted to reach US$991.60m in 2024.
The ad spending is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of 1.44%, leading to a projected market volume of US$1,065.00m by 2029.
The average ad spending per TV Viewer in the Traditional TV Advertising market is estimated to be US$12.58 in 2024.
It is projected that the number of users in the Traditional TV Advertising market will reach 81.8m users by 2029.
Traditional TV advertising in Vietnam is seeing a resurgence due to its effectiveness in reaching a wide audience amidst digital saturation.

Key regions: Germany, Europe, Japan, United Kingdom, Australia

Definition:
Traditional TV Advertising refers to ad spending on moving image formats broadcasted via traditional transmission channels such as terrestrial and digital terrestrial (DTTV, DTT, DTTB) TV, cable TV, satellite TV, and linear TV delivered via Internet Protocol television (IPTV). Terrestrial television uses traditional antennas that transmit analog signals. Analog terrestrial TV has undergone a digital switchover (DSO) to digital terrestrial TV in most parts of the world. For digital terrestrial TV, television broadcasting stations transmit TV content through radio waves to televisions in households in a digital format. Internet Protocol television (IPTV) refers to the delivery of television content via Internet Protocol networks. IPTV is used in subscriber-based telecommunications networks via set-top boxes or other customer-premises equipment (IPTV is included in the cable revenue split here). Traditional TV Advertising covers all ad spending on pay-TV operators and networks as well as free-to-air networks and free-to-air spin-off digital channels from terrestrial network operators. Usually, the distribution of advertising time in television programs is either carried out by the broadcasters themselves or by marketing agencies.

Structure:

Cable TV signals are transmitted through coaxial or fiber-optic cables directly to each household without the need for external antennas.
Satellite TV includes television programming with the use of communication satellites that transmit to satellite dishes. A dedicated satellite receiver (external set-top boxes or built into TV sets) decodes the television program.
Digital Terrestrial Television (DTT), sometimes known as direct-to-terrestrial television, is a type of television reception in which a signal is transmitted directly to a viewer's antenna rather than through a cable or satellite system. As a rule, HDTV signals are available through digital terrestrial television, and this type of television also makes better use of the radio spectrum.

Additional information:
Traditional TV Advertising comprises advertising spending, users, average revenue per user, and user demographic. The market only displays B2B spending and users. Figures are based on Traditional TV Advertising spending and exclude agency commissions, rebates, production costs, and taxes. For more information on the data displayed, use the info button right next to the boxes.

Market

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Region comparison

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Analyst Opinion

The Traditional TV Advertising market in Vietnam is experiencing significant growth and development. Customer preferences are shifting towards digital platforms, leading to a decline in traditional TV viewership. However, advertisers are still investing in traditional TV advertising due to its wide reach and effectiveness in reaching certain target audiences. Additionally, local special circumstances such as limited internet access and cultural factors contribute to the continued popularity of traditional TV advertising in Vietnam. Customer preferences in Vietnam are gradually shifting towards digital platforms, with an increasing number of consumers accessing content through online streaming services and social media. This has led to a decline in traditional TV viewership, as consumers have more control over what they watch and when they watch it. As a result, advertisers are adapting their strategies to reach consumers on these digital platforms. However, traditional TV advertising still holds value for advertisers, particularly for reaching older demographics and rural populations who may have limited access to the internet. Despite the rise of digital platforms, traditional TV advertising remains popular in Vietnam due to its wide reach and effectiveness in reaching certain target audiences. Television is still a dominant form of media in many households, and advertisers can leverage this to reach a large number of viewers at once. Additionally, traditional TV advertising allows for more targeted advertising, with the ability to select specific time slots and programs that align with the target audience's interests. This can be particularly effective for reaching niche markets or specific geographic regions. Local special circumstances in Vietnam contribute to the continued popularity of traditional TV advertising. Limited internet access in rural areas makes traditional TV the primary source of entertainment for many households. Additionally, cultural factors play a role in the preference for traditional TV advertising. Vietnamese viewers are accustomed to the format and style of traditional TV commercials, and advertisers can leverage this familiarity to create impactful and memorable advertisements. Underlying macroeconomic factors also contribute to the development of the Traditional TV Advertising market in Vietnam. The country's strong economic growth has led to an increase in disposable income, allowing more households to afford televisions and pay for cable or satellite subscriptions. This has expanded the potential audience for traditional TV advertising. Additionally, the government's support for the media industry and the presence of a well-established broadcasting infrastructure further contribute to the growth of the traditional TV advertising market in Vietnam. In conclusion, while customer preferences in Vietnam are shifting towards digital platforms, traditional TV advertising remains popular and effective due to its wide reach, ability to target specific audiences, limited internet access in rural areas, cultural factors, and underlying macroeconomic factors. Advertisers in Vietnam continue to invest in traditional TV advertising to reach a broad range of consumers and leverage the familiarity and impact of this advertising medium.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on traditional TV advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers non-digital formats such as terrestrial TV, cable TV, satellite TV, and linear TV.

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use annual financial reports of the market-leading companies and industry associations, third-party reports, and survey results from our primary research (e.g., Consumer Insights Global Survey) to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as GDP, population, media consumption, number of households with television, and consumer spending.

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.