AR Advertising - Vietnam

Vietnam

Highlights

In Vietnam, revenue in the AR Advertising market market is projected to reach US$16.9m in 2024.
This revenue is expected to exhibit an annual growth rate (CAGR 2024-2029) of 9.26%, leading to a projected market volume of US$26.2m by 2029.
While a projected market volume of US$1.2bn is anticipated in 2024, it is noteworthy that the majority of revenue is generated the United States.
As Vietnam's digital landscape rapidly evolves, AR advertising is increasingly becoming a vital tool for brands to engage the tech-savvy youth market.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The AR Advertising market in Vietnam has been experiencing significant growth in recent years. Customer preferences for interactive and immersive advertising experiences, coupled with advancements in technology, have contributed to this trend.

Customer preferences: Vietnamese consumers have shown a growing interest in interactive and immersive advertising experiences. They are increasingly seeking out engaging and entertaining content that goes beyond traditional advertising methods. Augmented reality (AR) advertising offers a unique and interactive way for brands to connect with their target audience. By blending the physical and digital worlds, AR advertising allows consumers to interact with products and experience them in a more personal and memorable way. This level of engagement has resonated with Vietnamese consumers, who are eager to explore new and innovative advertising formats.

Trends in the market: One of the key trends in the AR Advertising market in Vietnam is the integration of AR technology into various industries. Companies across sectors such as retail, real estate, and entertainment are leveraging AR advertising to enhance their marketing efforts. For example, real estate developers are using AR to create virtual tours of properties, allowing potential buyers to explore and visualize spaces before making a purchase decision. Retailers are also adopting AR technology to enable customers to virtually try on products, enhancing the shopping experience and reducing the need for physical contact. Another trend in the market is the increasing availability and affordability of AR-enabled devices. With the rise of smartphones and tablets, more Vietnamese consumers have access to AR technology, making it easier for brands to reach their target audience. This accessibility has opened up new opportunities for businesses to incorporate AR advertising into their marketing strategies.

Local special circumstances: Vietnam's young and tech-savvy population has played a significant role in the growth of the AR Advertising market. With a large percentage of the population being digital natives, there is a high level of familiarity and comfort with technology. This has created a receptive audience for AR advertising, as consumers are more willing to engage with and adopt new technologies. Furthermore, Vietnam's rapidly growing economy has contributed to the expansion of the AR Advertising market. As disposable incomes rise, consumers have more purchasing power and are more likely to engage with brands that offer unique and innovative advertising experiences. This has prompted businesses to invest in AR advertising as a way to differentiate themselves in a competitive market.

Underlying macroeconomic factors: The AR Advertising market in Vietnam is also influenced by broader macroeconomic factors. The country's stable economic growth and increasing urbanization have created a favorable environment for businesses to invest in advertising and marketing. As more companies enter the market and competition intensifies, brands are seeking innovative ways to capture the attention of consumers and stand out from the crowd. AR advertising offers a solution to this challenge by providing a novel and engaging way to connect with customers. In conclusion, the AR Advertising market in Vietnam is experiencing growth due to customer preferences for interactive and immersive experiences, as well as advancements in technology. The integration of AR technology into various industries, the increasing availability of AR-enabled devices, Vietnam's young and tech-savvy population, and the country's stable economic growth all contribute to the development of this market. As the market continues to evolve, businesses in Vietnam have a unique opportunity to leverage AR advertising to engage with their target audience and drive brand awareness.

Data coverage:

The data encompasses B2C enterprises. Figures are based on AR advertising revenue, which includes pop-up advertising displayed in social media apps, gaming apps, and eCommerce apps as well as advertising that is integrated into the virtual world.

Modeling approach / market size:

The market size is determined through a top-down approach. We use annual financial reports of the market-leading companies and industry associations, as well as third-party studies and reports 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 consumer spending, internet penetration, 4G coverage, and historical developments.

Forecasts:

We apply a variety of forecasting techniques, depending on the behavior of the relevant market. For instance, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption. The main drivers are level of digitalization, adoption of technology, GDP per capita, and internet penetration.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development).