Vietnam: Reaching your target shoppers more efficiently

Understand Vietnamese shoppers media habits and how this differs by region

By the end of 2018, it is forecasted that there will be around 68 trillion VND spent on media advertising by companies in Vietnam (1) – that is almost $3 billion USD. Knowing this, it is very easy to appreciate why advertisers, media agencies and media owners continue to work tirelessly to better understand the media return on investment (ROI) of the dollars they spend. 

Global studies from Kantar Worldpanel isolating the impact of media on brands show that the average impact of a media campaign in the uplift for any FMCG brand is 4.5% of the total sales during a campaign (2). However, looking at spending is only half of the story. From the same study, we know that more than a third of the people attracted to the brand after seeing its advertising will be new shoppers and looking through this lens also helps determine the success of any media campaign.  

As a result, getting the most out of any media investment starts with careful planning and accurate targeting of the target audience, be it potential new shoppers or existing shoppers whom we want to increase loyalty of.

Media touchpoint importance

In Vietnam, the media environment is changing rapidly with the rise of digital. Despite that, as of today, TV remains the most relevant touchpoint to FMCG shoppers in both Urban 4 Key Cities (3) and Rural Vietnam. In Urban 4, there is a 17% higher absolute consumption (Reach x Frequency) than the next biggest touchpoint which is digital, while in Rural, though swiftly increasing smartphone ownership is driving up the number of connected households, the overall reach of digital is slightly less than half that of TV.

If we look at the projected media spending for Vietnam, TV is expected to drop to 66% share of spending in 2018, while Online could reach 30% - reflecting the fact that TV still offers the greatest potential in terms of total exposure.

Source: Kantar Worldpanel Vietnam | Media Survey 2018 | Key Decision Maker for FMCG

In Rural, Loudspeaker can reach 76% of key decision makers thanks to activities organized by the Cultural Centre of the commune who use the loudspeaker to announce and deliver social information which can also include FMCG advertising.

Differentiating household main shoppers by region

One of the most common ways to segment key target audience is by region. In Vietnam, this is essential because we all know that the culture and shopping behaviors of each region can differ significantly due to historical reasons & cultural background of the landscape. It is fair then that the same can be expected for media consumption.

In Urban, some of the key differences we see between the top two cities are that HCMC skew slightly more towards traditional media channels, while Hanoi is more skewed towards digital. Newspaper and Magazine penetration is highest in HCMC with over a third of key decision makers reached by Newspaper and almost a fifth by Magazines – and if we add another filter to look at older decision makers, or the most affluent, these figures can soon rise to 40% or more.

While the reach of digital in HCMC is slightly higher, those in Hanoi are spending more time online. Hanoians spend on average 3.1 hours a day online compared to 2.6 hours on TV, so it is fair to say that Digital channels can work well in Hanoi. News sites, social networks and chatting online are just some of the activities those in Hanoi enjoy for longer in a day than their southern counterparts.

In Rural, the South accounts for a greater proportion of digital media consumption. Again, though penetration is slightly lower than in Central or North, the amount of time spent online is higher, around 2.2 hours per day compared to 2.1 hours for TV.

Targeting with buyer behavior

Analyzing groups of consumers by their buying behavior can ensure our media investment goes to the right place. Some examples might be those buying your category but not your brand, or those who recently switched from your brand to a competitor.

Many brands might try to spread their investment and focus on reaching the most people. But what if you are a brand playing in the premium format of this category? Is your target the same?

Download the full report by clicking the link on the right and answer all these questions.

(1) GroupM This Year Next Year report, 2017

(2) Kantar Worldpanel | Media Investment: Why you should judge in terms of shopper recruitment, too | April 2018

(3) Urban 4 Key Cities (Ho Chi Minh City, Hanoi, Can Tho, Da Nang)