Oct 23, 2012

Vietnam - Ad-on-mobile market booming

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VietNamNet Bridge – A lot of information technology (IT) firms have jumped into the ad-on-mobile market which is considered a gold ore bed, especially for small and medium enterprises.

The market has existed in the world for the last several years. According to emarketer, most of the CEOs in the communication and showbiz industry highly appreciate the advertisements on mobile devices (smart phones, tablet computers).

A survey conducted by Ernst & Young in September showed that 79 percent of CEOs believe that tablets would have the highest impacts, while 62 percent said smart phones would also have big impacts on the communication and showbiz industry in the next three years.

In Vietnam, according to Inmobile, mobile phone has become the leading communication channel. Start-ups about mobiles have been mushrooming, network operators, website development companies and technology firms have been well aware of the development of the services on mobile phones, especially the advertisement service.

The development has triggered a new tendency – advertising on mobile phones.

Analysts have commented that all small and big businesses surely want to use the new ad method immediately. However, they do not think that advertisements on mobile phones would be suitable to all enterprises.

Vietnamese enterprises need to have thorough consultancy before they decide to post ads on mobile phones. Currently in Vietnam, the users of smart phones are mostly high income and medium income earners. Of these, class A clients account for 24 percent, while the figures are 19 percent and 19 percent for B and C classes, according to Admicro in June 2012.

Meanwhile, according to Comscrore, these clients mostly are interested in the fields of finance, high grade products and non-essential goods. Since the ad pieces on mobile are believed to reach out to this kind of clients, businesses may waste their money if advertising unsuitable products.

The technological limitations have also cited to explain why advertisements on mobile phones are not suitable to all. It is not popular in Vietnam that every enterprise can set up a website friendly to mobile phones.

It would be a great waste of money if businesses have to spend big money on advertisements on mobile phones, but potential clients cannot easily find the information about the products on the websites, or they feel unpleased with the interfaces lop-sided with the mobile phone screens.

Having a website or an app specifically designed for mobile phones is the prerequisite for businesses to consider posting ad pieces on mobile phones.

To some extent, analysts say, advertisement on mobile phones would badly affect clients’ private lives. While mobile phones are considered more personal than any other high technology product, they can also most disturb consumers.

Therefore, advertising in mobile phone should follow the way so that it does not make clients unpleased. It would be reasonable to send ad pieces to clients while they are playing games, but it would be troublesome to them if the ads come when they are viewing wedding photos.

There always exists the difference in the consumption behavior of the clients using websites and the clients using smart phones. Therefore, the same ad pieces to the two different groups of clients would not bring the same effects.

Phan Dang Tra My from Admicro, which is considered the pioneer in the ad-on-mobile market, also said not all Vietnamese businesses can fit the new type of advertisement.

My said the businesses which can take full advantage of the ads on mobile phones are mostly the ones in the fields of games, finance, car, phone and value added service enterprises.

Analysts say though a lot of enterprises still stay outside the market at this moment, this would be the dominating communication channel in Vietnam in the next two or three years.

DDDN


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