Oct 6, 2012

Vietnam - Advertising on TV – the games of the big guys

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VietNamNet Bridge – Not only multi-national groups, but domestic big enterprises also spend big money on TV ad campaigns.

Ad market lucrative

An officer of a market survey firm recorded 112 TV ad pieces posted within two hours on a Friday in late August. These were the ad pieces of 48 goods brands on VTV3 channel, nine of which appeared four times during the two hours. They were mostly the brands in the fast consumer goods and pharmacy sectors.

The survey has found that 60 percent of ad pieces were placed by foreign companies, while the other 40 percent by domestic companies. The ad pieces appear on TV more frequently on weekend.

Not only fast consumer goods manufacturers, but enterprises in many other industries, not only multi-national groups, but domestic conglomerates now also pour their money into noisy advertisement campaigns.

The success of Vinamilk, which is now leading the dairy product market, has been partially attributed to its reasonable advertisement campaigns. In 2007, the dairy product market was divided to Vinamilk, Dutch Lady, Ba Vi and Moc Chau brands. However, Vinamilk has left the rivals far behind, now holding up to 40 percent of the market share.

The dairy producer spent 1812 billion dong on marketing and advertisement in 2011, of which 902 billion dong was spent on advertisement.

Samsung also once surprised people when it budgeted a huge sum of money for advertisement in the first half of 2011. The two products of TV and mobile phone alone gobbled up 44 million dollars of the total advertisement budget of the brand.

As for TV products, Samsung is believed to spend more money on advertisement than other rivals such as Toshiba, or Sony in the number of ad pieces placed on TV and printing newspapers, and only spent less than the rivals in the number of ad pieces on online newspapers.

Samsung spent nearly one million dollars on the ad pieces on TV, much higher than the reported figure of 400,000 dollars spent by Nokia. The figure is nearly double that spent by other rivals such as HTC or LG.

The continual advertisement campaigns of Samsung helped the group to expand its electronics market share from 28.6 percent to 32.9 percent in the first six months of 2012.

However, Vinamilk and Samsung are not the big guys who have spent utmost money on advertisements. The records in the field are being held by the two multi-national groups Unilever and Procter & Gamble.

The Vietnamese Tan Hiep Phat drink brand ranks the third. The company with the turnover of 18 trillion dong is now the aiming point of domestic and foreign ad firms.

Despite economic downturn, money still poured into ads

The TV ad market in the first six months of 2012 witnessed a splendid growth rate of 34 percent in comparison with the same period of 2011.

Despite the economic downturn, which has forced businesses to cut down expenses, money still has been poured into ad campaigns. A company would have to pay 120-150 million dong for a 30-second ad clip on TV appeared on “golden hours,” while the price sometimes climbs to 180 million dong.

Experts have found out that though the index of consumers’ confidence on TV advertisements has decreased over the last two years, it still stays firmly high, at over 60 percent.

The surveys all have shown a common finding that consumers usually go to markets and ask for “the products which are now advertised on TVs,”

Tran Bao Minh, Deputy General Director of the Asia Food Company, said in 2011 it spent 150 billion dong on advertisements, while the company would spend more money on instant noodles and rice gruel products.


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