Vietnam’s Media Vietnam’s Media LandscapeLandscape

Prepared by Quang Ngoc, Hanoi Prepared by Quang Ngoc, Hanoi Branch Office of Dat Viet MediaBranch Office of Dat Viet Media

VAC - MediaVAC - Media

Access – Engagement - Results

Outline Outline • Brief Overview of Vietnam & Consumers

• Advertising Landscape

• Media Scenario

• Recommendations

VAC - MediaVAC - Media

Access – Engagement - Results

Vietnam &

Consumers

Source: Population Survey 1st April '99 General Population Office

TNS Media Habit Survey – Sweep 1-2007

Source: GSO/UNDP

Country at a glance - Socio-Country at a glance - Socio-demographic indicatorsdemographic indicators

• 59 provinces and 5 municipalities• Population (2006): 84.1 mill.• Pop. growth: 1.2% - 1.3%• Life expectancy at birth (2004): 71 years• Adult literacy rate (2004): 93.9%• Urban population (2006): 73% - 72% of urban

pop. in 6 largest cities• Non-agro workforce (2004): 40%

Source: UNDP/AAD

Economic DevelopmentEconomic Development

• Real GDP growth (2007): 8.3%

• Inflation rate (2007): 12% (year’s end)

• GDP per capita (2007): US$ 825

• FDI (1st half 2007): US$ 5.2 billion

• GDP composition (2006):– Agriculture: 20.89%– Manufacturing: 41.03%– Service: 38.08%    

Demographical InformationDemographical Information

Total Population: 84.5 M

72

74

76

78

80

82

84

86

1999 2001 2003 2006

1999

2001

2003

2006

Medium-sized country with estimated 84.5M population growing at 1.3% annually Average Household size: 4.6No. of Earners: 2

16

16.5

17

17.5

18

18.5

1999 2001 2003 2006

1999

2001

2003

2006

Household Population: 18.5 M

Population by AgePopulation by Age

40-5913%

60+8%

0-1439%

15-2419%

25-3921%

Bulk of population (39%) are age 15 years old and below

Teenagers and Young Adults (15-24) account for 19% while the Adults (25-39) represent around 21%

Household SEC ClassificationHousehold SEC Classification

ABC SEC ratio increased YOY. • SEC is estimated based on household durable

ownership.

7.8%

8.9%

9.5%

10.9%

19.8%

22.2%

23.4%

27.9%

39.3%

39.9%

39.9%

37.8%

19.3%

17.5%

17.8%

15.1%

13.9%

11.5%

9.4%

8.2%

2004

2005

2006

2007

Class A - $1,000+ Class B - $500- 999 Class C - $300- 499Class D - $150- 299 Class E/ F - <$150

Household Durable Household Durable OwnershipOwnership

Color TV

Motorcycle 100cc+

Motorcycle <100cc

Gas cooker

Fixed line telephone

Mobile phone

Fridge / Freezer

Video CD player

CD Stereo system

Stereo system

Washing machine

Personal computer

Camera

Air-conditioner

Microwave

Stereo system

Karaoke machine

Car

Handycam / Video camera

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0%

•Motorbike as main mode of transportation; very low Car ownership

•Audio (Stereo) system not popular

•Increase in telecom ownership – landline and mobile phone

Household ExpenditureHousehold Expenditure

Source: AC Nielsen Omnibus 2005

Shopping HabitsShopping Habits

0% 10% 20% 30% 40% 50% 60% 70%

Supermarket

Pharmacy

Cosmetic store

Soft Drink Agent

Grocery store

Market stall (Wet market)

1-2 times a month Weekly 2-3 times a week Everyday

Wet market as most popular shopping outlet followed by Grocery Stores and Supermarket

Vietnam’s Vietnam’s Advertising Advertising LandscapeLandscape

• Vietnam’s Ad is just for a decadeVietnam’s Ad is just for a decade

– Recently Booming in both numbers & revenuesRecently Booming in both numbers & revenues

• 6,000 ad companies, in HCM alone, 547 ad coms• 1,000 product-providers• Tens of newspapers, magazines, TV programs engaging in

business• About 30 Vietnamese advertisement companies have set

representative offices abroad. • Goldsun, Viet Land, XPR, Mai Thanh, An Tiem are big names in

the sector. • By 2010, ad coms will number 500,000, according to Nguyen Quy

Cap, chairman of HCM Ad. Association

– Huge TurnoversHuge Turnovers

• In 2006, Vietnam’s advertising revenue was estimated to reach VND7 trillion ($437.5 million), of which, 70% came from joint ventures between foreign advertisers and locals

• The figure is expected to hit VND15 trillion ($937.5 million) this year.

Source: TNS and VAC Estimates

Medium ShareMedium Share

2005 - US$341.12 Million

TV 66.0%

PRESS 25.9%Outdoor

7.9%

RADIO 0.2%

2006 - US$465 million

TV 70.8%

PRESS 23.2%

Outdoor5.8%

RADIO 0.2%

•Total industry monitored adex is 438 Million USD last year, 40% increased vs. the year of 2005; up to US$ 465 if estimated OOH spending added •TV as primary medium used (71% average share) followed by Press (23%)

Total Industry AdexTotal Industry Adex

63 73 80115

146197

288

130159

8 8 12

16

20

27

41

22

20

3744

55

66

77

88

108

50

57

0

50

100

150

200

250

300

350

400

450

2000 2001 2002 2003 2004 2005 2006 Jan-Jun 06 Jan-Jun 07

Million

s

Print

TV non-spot

TV spot

+28%

+23%

+34%+18%

+16%

Source: TNS – TV (All Activities), Print & Radio

+40%

+18%

• Increase of advertising spend, clutter and fragmentation.• Budget allocated to TV increased YOY

66% 65% 62% 66% 68% 71% 75% 75% 76%%TV spend

0

5

10

15

20

25

30

35

40

45

50

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Millions US$

2000 2001 2002 2003 2004 2005 2006 2007

Total Industry Adex by Total Industry Adex by monthmonth

Source: TNS – TV (Spots only), Print & Radio

Top 20 advertisers - Top 20 advertisers - YTD2007(June)YTD2007(June)

2,163

2,209

2,222

2,509

2,509

2,519

2,713

2,789

2,811

2,871

3,332

3,337

3,385

4,004

4,150

4,239

5,101

6,236

8,91123,581

MEAD JOHNSON Nutritionals

VTC - Digital Television

ABBOTT Laboratories Inc.

VIETNAM AIRLINES

NESTLE VIETNAM

UNILEVER Bestfoods & ELIDA P/S

BAO VIET LIFE Insurance

VINAPHONE

VIETTEL Corporation

AJINOMOTO VIETNAM

TAN HIEP PHAT Brewery Co.

NOKIA A.S.

VIETNAM Brewery Ltd

VINAMILK

TECHCOMBANK

VMS - MOBIFONE

ORICOMBANK

DUTCH LADY VIETNAM

P&G VIETNAM

LEVER VIETNAM

Thousands US$

• Top 3 advertisers are: Lever, P&G và DL• 11 out of 20 top advertisers are local company• 7 of the top 20 advertisers have increased spending more than 100% vs. the same period of last year.

Source: TNS – TV (All Activities), Print & Radio

Q1+2 `07

Q1+2 `06

%07/06

1 1 -10%

2 2 -3%

3 4 +14%

4 392

5 6 -6%

6 515

7 5 -22%

8 8 +7%

9 10 +29%

10 17 +90%

11 32+187

%

12 21 +82%

13 26+108

%

14 613

15 14 +8%

16 13 +3%

17 96+618

%

18 11 -17%

19

20 23 +51% 

Top 20 products - Top 20 products - YTD2007(June)YTD2007(June)

2,809

3,007

3,030

3,203

3,511

3,598

3,696

3,751

3,770

4,058

4,629

5,086

5,089

5,479

5,968

6,312

7,512

11,317

14,652

18,481

Television

Airlines (Aerial Navigation)

Automobiles

Telecommunication Network

Diverse Pharmacy

Tonics + Vitamins

Motorbike

Energy Drinks

Insurances

Ultra-Heated Treatment

Soups & aromatic

Beer & Stout

Fabric Softener & anti-electrization

Washing Powder

Facial Beauty Care Lines

Mobile Phones

GUM (1-5 years)

Shampoo

Banks

Telephone services

Thousands US$

Source: TNS – TV (All Activities), Print & Radio

Q1+2 `07

Q1+2 `06

%07/06

1 2 +70%

2 9+172

%

3 1 -9%

4 6 +29%

5 8 +12%

6 4 +0%

7 7 -5%

8 15 -44%

9 5 -14%

10 18 +69%

11 13 +10%

12 79+684

%

13 57+386

%

14 10 -15%

15 16 +15%

16 22 +48%

17 3 -59%

18 12 -24%

19 63+358

%

20 19 +6%

• Almost all categories raise their spending, especially in the telecom and banking sector.

Top 20 brands - YTD2007(June)Top 20 brands - YTD2007(June)

1,594

1,607

1,780

1,952

2,013

2,158

2,209

2,277

2,509

2,557

2,614

2,713

2,789

2,822

3,060

3,226

3,316

4,150

4,239

5,101

PANTENE PRO-V (Shampoo)

998 (Services)

OLAY

AJ I-NGON (Flavour Powdered)

VIETTEL Corporation

NUMBER 1 (Energy Drink)

VTC (Digital Transmission)

TIGER (Beer)

VIETNAM AIRLINES

POND'S Institute

CLEAR

BAO VIET LIFE Insurance

VINAPHONE

REJOICE (Shampoo)

COMFORT

OMO (Detergent)

NOKIA

TECHCOMBANK

VMS - MOBIFONE

ORICOMBANK

Thousands US$

Source: TNS – TV (All Activities), Print & Radio

Q1 `07

Q1 `06 %07/06

1 585

2 2 -6%

3 745

4 8 +31%

5 6 +14%

6 12 +53%

7 13 +45%

8 21 +108%

9 866

10 7 -2%

11 3 -42%

12 118 +618%

13 11 +13%

14 6613

15 299

16 110 +447%

17 58 +205%

18 10 -20%

19 6613

20 24 +32%Oricombank is the biggest spender in Ytd 2007, followed by VMS MobiFone and Techcombank

SummarySummary• Based on the abovementioned diagrams of

media spending some conclusions can be drawn as follows:– Media spending keep increasing sharply 18% in 06 vs

07– Almost categories raise their spending, especially in

banking and telecom sector.– Top 3 advertisers are: Unilever, P&G and VMS-

Mobifone. – HTV7 attract highest spending from advertisers in Q1 2007

– Tuoi tre and Thanh Nien are on the top. Spending spread on many others.

Media ScenarioMedia Scenario

Understanding the process Understanding the process delivers solutionsdelivers solutions

• Key Barriers• All state-owned• Monopoly• Political communication

channel• No service perception

As a result, local insights needed to generatebuying solutions

Ministry of Media & Comm.Services of Media & Comm.

Central Ideology & Cultural Comm.Pro. Ideology & Cultural Comms.

Provincial/City People’s Comms

Financial & Direct Management

MEDIA POLICIES

Government ManagementPolicy & Direction

Advertising Ordinances to Advertising Ordinances to ConsiderConsider

(Ordinance No. 39-2001-PL-UBTVQH10)

• Acts Strictly Prohibited in Advertising Activities (Article 5)– Advertising which discloses State secrets, or which harms

national independence and sovereignty, defence and security or the safety of society

– Advertising which is contrary to the traditions, history, culture, ethics or fine customs of the Vietnamese people

– Using the national flag, the flag of the party, the national emblem, the national anthem or its melody, portraits of leaders or of VN dong, images of traffic signals or traffic notices for advertising

– Misleading advertising – Advertising which has an adverse effect on urban beauty,

landscape and environment and traffic order and safety

Advertising Ordinances to Advertising Ordinances to ConsiderConsider

(Ordinance No. 39-2001-PL-UBTVQH1 • Acts Strictly Prohibited in Advertising

Activities (Article 5)– Taking advantage of advertising to offend the honour

and reputation or infringe the lawful rights and interests of organization and individuals

– Advertising products or goods which are not yet permitted to be circulated or services which are not yet permitted to be provided at the time of advertisement

– Advertising goods and services which the law prohibits to be traded or advertised

Material CensorshipMaterial Censorship

• No governing body handles censorship of commercials on both TV and Press

• Done by the media owners; coordination c/o media agency/department

• Interpretation of governing regulations varies from one media owner to another

• Individual medium/media owner is responsible for the content of the ads it carries

• Pre censorship advice should be sought from Media prior any production – Submit Storyboard or Lay out prior production– Although Story board is used only as reference and tape is used for final

censorship, this would enable Agency to detect possible issues with the content. Also saves time and resources in connection with production

Some NotesSome Notes• Censorship requested on VTV & HTV and Tuoi Tre Newspaper• Storyboard/layout should be pre-censored to ensure the copy and

concept• No usage of the Best• No comparison with other branch in the category• No usage of money, national flag, national leaders’ portraits• No exaggeration• Foreign proof is not accepted • Vietnamese language should be bigger before foreign one in the Ad• Price announcement must be in VND or equivalent to VND • No sex, violent pictures• All should be relevant to the vietnamese traditions, habits and

cultures• Promotional ads must have mechanism and the word “Opportunities

to win”, valid date or mention “see details on…”

Media RegulationMedia Regulation

• Documentation- Local / JVs products Business License + Product - trademark Registration- Imported products Product - Trademark Registration + Permit of Imported Goods

• Special products- Medicine & cosmetics Visa+ Ad License by MOH & chemical products- Cigarette & AlcoholBanned

- Food products: Quality Certificate + Ad license by MOH

Discount PolicyDiscount Policy

• Average discount:– 20% on TV– 15% on Print– 10% on Radio

• Policy of applicable discount– Designed by each media owner– Discount based on individual Client’s total budget

committed at the beginning of the year• 10-12% Penalty is imposed if commitment is not reached

• Programming gets priority in discount policy

Media ResearchMedia Research• TNS is currently providing media research

– Pitch for Peoplemeter between TNS and NMR for the year 2008 service is in the discussion between agencies

• Services provided: – Establishment Survey

» Provides information on media penetration and media habits

» Also includes data on household ownership and consumer goods consumption

» Methodology: Face-to-face Interviews

» Respondents: Males and Females age 15 years old and up

» Coverage: Total 3,000 respondents nationwide

» Frequency: 2x per year in HCMC, Hanoi, Danang and Cantho

» 1x per year in Khanh Hoa and Hai phong

– TV Audience Measurement (TAM)

» Methodology: Diary

» Respondents: Males and Females age 15 years old and up

» Coverage: Total 3,000 respondents nationwide

» Frequency: Continuous panel for 365 days collected weekly in HCMC, Hanoi, Danang, Cantho & 1x per year in Khanh Hoa, Hai phong

– Monitoring Services

» Coverage: 22 TV Channels; 58 Publications; 1 Radio Channel

Advertising Rates: TV and Advertising Rates: TV and RadioRadio

Rate inflation is around 15% per year

TV Station

Cost of 30 seconds TVC

(in prime time)

VTV 52,500,000

HCM 55,000,000

VINHLONG 14,400,000

Radio Station Duration 60 seconds

VOV 3,300,000

VOH (HCM) 5,000,000

XONE FM 13,200,000

Advertising Rates: PressAdvertising Rates: PressTop Newspapers HPFC FPFC

Tuoi Tre 28,000,000 55,000,000

Thanh Nien 21,500,000 42,000,000

Phu Nu Tp.HCM 9,000,000 17,000,000

Saigon Giai Phong 18,000,000 36,000,000

Hanoi Moi 16,500,000 32,000,000

Sai Gon Tiep Thi 14,000,000 26,000,000

Cong An Tp.HCMC 26,100,000 53,000,000

Top Magazines HPFC FPFC

Tiep Thi & Gia Dinh 54,500,000

Phu Nu Chu Nhat 12,000,000

Tuoi Tre Chu Nhat 10,000,000

The Gioi Phu Nu 41,900,000

Thoi Trang Tre 27,500,000

Material leading time - TVMaterial leading time - TV

ActionResponsibili

ty

No. of Working DaysRemarksVTV HTV Others

Material Delivery for Censorship

Creative Agency

9 7 3 Before airing date

Material Censorship

TV Stations 2 1-2 N/A From receipt of TV stations

Booking submission

VAC 7 5 2 From receipt of TV stations

Booking confirmation

TV stations 2 1 1 After booking submission

Booking Cancellation

VAC 5 4(+penalty)

2 Before airing date

Material leading time - PrintMaterial leading time - PrintPrint title Issue date

Deadline of

Booking Material

AN NINH THU DO Daily 7 days 5 days

LAO DONG Daily 7 days 4 days

NGUOI LAO DONG Daily 5 days 3 days

SG DOANH NHAN CUOI TUAN

Fri 7 days 6 days

SAIGON TIEP THI Thu 7 days 7 days

SANH DIEU 5th 20 days 15 days

THANH NIEN Daily 7 days 5 days

THE THAO HANG NGAY Daily 7 days 5 days

THE THAO VAN HOA Tue, Fri, Sat 5 days 3 days

TIEP THI GIA DINH Weekly (Tue) 7 days 7 days

TUOI TRE Daily 7 days 5 days

General Overview - TelevisionGeneral Overview - Television• There are a total of 65 stations • Advertising is accepted on all channels• Language is purely Vietnamese

– News in English, French & Chinese summarised twice a day in key TV stations

• VTV (Vietnam TV) as the only channel aired nationwide through satellite – VTV1 mainly political and news channel– VTV2 - educational channel– VTV3 - entertainment channel– VTV 4- for Vietnamese overseas, broadcasts 12 hours

• VTC is going to have nationwide coverage soon • Cable TV is the new trend with speedy development: provide

international channels and including BBC, CNN, MTV, Star TV, Cartoon, ESPN, ….

Television Television • Programming content continuously improving with more local

and international show available • Game-show (imported and locally developed) currently

preferred, struggle with Vietnamese series followed by imported movies/series and international sports

• High cluttered with 10-30 commercials per break• 5%-10% loading fee for premium position • No competitive lock-out within a break, except some sponsored

program• Less-commercialized documentary (self-introduction) is

accepted at lower rate• There’s a difference between South and North intonation

• VTV1,2 : 64 provinces/ cities

• VTV3: Full Program & Advertisements: Hanoi, HCM, Danang, Can tho, Quang ninh, Hue, Phu Yen, Khanh hoa and near by provinces

VTV CoverageVTV Coverage

PressPress• 713 daily and periodical publications

– A quarter is daily newspapers

– All major newspapers have online versions

– Around 20 newspapers and magazines in foreign languages

• Most titles contain general interest topics – More & more titles specialize on business, fashion, sport, IT, health, family…– Women magazines are more developed

• News still dominate newspapers. Low on entertainment side• No Audit Bureau for Circulation• Most papers do not accept ad placements on Editorial pages. Ads usually

contained in a separate section• No truly nationwide-coverage title • Premium position buy is additionally charged 10 - 20% in some papers• Reproduction quality is improving

– Most publications use 4-colour offset printing– Most publications now accepting CD instead of film

• Special sizes require special negotiation and extra cost – normally 20% surcharge

RadioRadio

• There are 3 Radio stations and other 60 radio channels that belong to TV stations

• FM channels are most preferable. Most listeners are students

• Government-controlled, information-oriented. Very low consumer-interest program

• Strong in rural areas such as Mekong Delta• Very low cost compared to TV, Print and Outdoor• Sponsorship opportunities mostly on FM channel• No available radio audience measurement & monitoring

CinemaCinema• Once very popular in

Vietnam before 1985. • Continue to grow with the

development of cinema complex & Cinema attendance

• Top 3 in HCM:– Cinebox– Galaxy– Megastar

• Sponsorship opportunities– Content associations

– Potential WOM generation

– Display

20 19 21 23

38

0

5

10

15

20

25

30

35

40

2001 2002 2003 2004 2005

36

3738

39

4041

42

43

4445

46

Th

ou

sa

nd

s

Cinema Theatres Shows

InternetInternet• Opened since

August 1997, 12 times growth in 5 years

• 7 IXP and 18 ISP, • Top sites:

– Vn.express.net– Yahoo.com

Internet Services Vietnam

2005 2006

No. of Internet subscriptions

2,906,422 4,059,392

No. of users 10,710,980 14,683,783

Internet users/population

12.9 % 17.67%

Name of Internet domains .vn

14,345 34,920

IP address being used 755,200 1,862,400

1,210,000

3,500,000

10,710,980

14,683,783

0

3,000,000

6,000,000

9,000,000

12,000,000

15,000,000

2001 2003 2005 2006

Internet Users

Mobile phoneMobile phone• Subscribers (2006): 11 mill. (13.2% of pop) – according

to TNS• Annual growth rate 2003-2006: 59.7%• Service providers:

– VinaPhone – 15M– MobiPhone – 15M– Viettel Mobile – 14M– S-Fone – 2M– EVN Telecom – 0.2M– Hanoi Telecom – 0.7M 

• Media ownership: state owned

Top spenders – TelecomTop spenders – Telecom

Source: TNS

616

2,057

669

1,826

362216

1,678 1,727

3,328

3,818

1,290

2,864

3,603 3,667

6,913

8,729

1,093

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

EVN Telecom VINAPHONE S-TELECOM VIETTEL VMS -

MOBIFONE

VNPT

'000

USD

2004

2005

2006YTD

• Spending of VNPT in 2006 is 8 times more than 2005• VMS MobiFone, S-telecom double their budget

Source: TNS Infosys

Spending by brand 2006 - Spending by brand 2006 - TelecomTelecom

VNPT

27.9%

VMS -

MOBIFONE

22.1%

S-TELECOM

12%Vinaphone

9%

VIETTEL

12%

EVN Telecom

4%

Others

13%

Adex : US$ 31,273,641

0

2,000

4,000

6,000

8,000

10,000

VNPT VMS -

MOBIFONE

S-TELECOM VIETTEL VINAPHONE EVN Telecom

'000USD

TV-spot TV-non spot Print Radio

Outdoor Advertising Outdoor Advertising ProminenceProminence

0

10

20

30

40

50

60

70

Various Outdoor media are prominent Mainly Billboard, Banner, Poster and Bus (Bus Shelter)

Recommendations• Vietnam’s Advertising market is growing Vietnam’s Advertising market is growing

20-30 % annually with the participation 20-30 % annually with the participation of increasingly more foreign and of increasingly more foreign and domestic firms, according to the domestic firms, according to the Vietnam Advertising Association.Vietnam Advertising Association.– However, up to 80% of the annual

revenues in recent years have been generated by some 50 foreign advertising firms and representative offices.

– Around 50 foreign companies held 80 percent of the market.

– Most of Vietnamese advertising companies just engage in doing outsourcing contracts or supplying services to foreign advertisers.

– Local businesses could hardly compete with their foreign rivals due to their lack of expertise and resources.

– So, VAG should focus on training staff and constantly provide them with strategic media planning and process.

• 4 key changes on media environment:4 key changes on media environment:– Advertising has increased and

clutter / fragmentation as well, it is therefore very difficult to reach the core consumer

– Media vehicles have also proliferated

– Consumer choices have been created

– More time out of home has been spent

• Media Directions for Media 2008Media Directions for Media 2008

– Exploit thoroughly growing medium i.e. internet, cable, OOH, leverage the usage of the media to create more awareness

– Internet should be used tactically as a integrated channel for all big campaigns

– Explore new media/vehicle opportunities in the market (i.e. HTV2, VTV6, VTV9, VTC1, VTC5) to fully capture of the target

Thank You!Thank You!