VietNamNet Bridge – The competition between Vietnamese and
foreign enterprises on the online ad market has been described as the fight of
David against Goliath. In order to survive, Vietnamese need to apply their own
tactical principle.
Experts agree that Vietnamese
enterprises have their own advantages. In HCM City, though Google is the most
visited website (28 percent), followed by Facebook (5.1 percent). However, most
of the viewers remain the readers of Vietnamese websites.
In principle, the income comes
from two sources, either from the fee collection from users or the ads from
enterprises. Meanwhile, Vietnamese Internet firms have the income mainly coming
from ads. This means that the websites with the high numbers of visitors would
have the advantages in the revenue. This is the second big advantage of
Vietnamese enterprises.
According to TNS Media,
vnexpress.net is now leading the market, earning 31.1 percent of the total ad
turnover in 2011. The second position belongs to 24h.com.vn (25.1 percent), the
surface areas reserved for ad pieces on the two websites always account for
20-30 percent of the surface areas. The ad fees set by the two websites have
always been by far higher than that set by other newspapers.
As for the ads charged per click,
in the past, the starting price level applied to all websites was 1500 dong per
click, not including VAT. The current prices are between 1100 dong and 2000
dong per click.
Marketing experts have pointed
out that with the current profit sharing at 40/60, the decrease of the fee from
1500 dong per click to 1100 dong per click would lead to the sharp fall of 26
percent of enterprises’ revenue.
Who to bet on?
It’s clear that Vietnamese enterprises
now get the better of foreign in terms of the number of service providers, but
they are inferior to foreign ones in terms of the market, revenue and ad forms.
Minh, when analyzing the
advantages and disadvantages of the rivals, noted that good content has always
been a big advantage of domestic enterprises. However, the problem is that they
would not be able to grow up if they purely rely on content services,
especially in Vietnam, where people do not think they have to pay for content.
Vnexpress.net is still being
highly appreciated in terms of the number of visitors. However, analysts say
they should find out another way to follow in the new stage of development. Its
model of charging fees on the real time of displaying is now considered out of date.
In order to improve their
business performance, FPT Online, which owns vnexpress.net, has just launched a
website at www.eclick.vn. eClick, like other ad networks in Vietnam, tries to
attract publishers to join the system and post ad pieces. The prices for
advertisers and the income for publishers would be decided on the numbers of
clicks.
At present, eClick charges 1500
dong per click, an average level if compared with Admarket, Ad360 and Adnet. It
hopes to obtain 1.25 billion pageviews by the end of 2012.
VCCorp, one of the big guys on
the ad market, which holds 30-40 percent of the market share with more than 150
websites, has launched an ad network on mobile devices (Mobile Ad network),
after realizing the increasing popularity of mobile phones.
Especially, the corporation has
joined hands with Google and become the partner of the big guy since October
2012 in its plan to develop the ads on searching engines.
DNSG
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