Market Trends of Vietnam OOH And DOOH Industry
Digital OOH (LED Screens) to Drive the Market
- Programmatic technology's integration into digital out-of-home (DOOH) advertising streamlines the buying and selling of ad space. By leveraging data analytics, advertisers can precisely target their audience, ensuring their messages are delivered effectively. This efficiency and precision are driving the rising popularity of programmatic DOOH in campaign management.
- Vietnam's swift urbanization, coupled with a governmental emphasis on smart city initiatives, is reshaping the landscape for digital advertising. Major cities like Ho Chi Minh City and Hanoi are witnessing a surge in LED screen installations, especially in high-traffic zones like shopping centers, transport hubs, and business districts.
- Furthermore, with ongoing enhancements in transportation infrastructure, such as the expansion of metro systems and bus networks, there is a growing canvas for DOOH installations. Digital screens in transit locations not only offer heightened visibility but also present a lucrative opportunity for advertisers, given the captive audience of commuters.
- In January 2024, Ho Chi Minh City, in a bid to underscore its commitment to infrastructure, commenced construction on its second metro line, following over a decade of work on the initial line. Spearheaded by the Management Authority for Urban Railways, this USD 2 billion initiative marks a pivotal step in Vietnam's efforts to attract investor confidence. The urgency is palpable as Ho Chi Minh City endeavors to bridge the infrastructure gap with its regional counterparts. Even Jakarta, a relative latecomer, has already operationalized its train services.
- In 2023, a survey conducted by the Vietnam E-commerce Association revealed that around 68% of small and medium enterprises allocated less than VND 10 million for website and mobile application advertising. Meanwhile, 14% of the surveyed large enterprises confirmed spending more than VND 100 million to promote their digital presence on various platforms that year.
Understand The Key Trends Shaping This Market
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Retail and Consumer Goods to Drive the Market
- Vietnam's rapid urbanization has spurred the rise of new shopping malls and retail spaces, especially in key cities like Ho Chi Minh City and Hanoi. These urban hubs have become hotspots for OOH and DOOH advertisements, effectively reaching a broad and diverse audience.
- With bustling foot traffic in these urban retail centers, OOH and DOOH ads enjoy exceptional visibility. Advertisers are capitalizing on these prime locations to not just display their products but to actively engage with potential customers.
- For instance, in 2023, Vietnam's retail market saw a surge in new projects, adding close to 111,000 square meters of retail space in Hanoi and Ho Chi Minh City. Notably, the Lotte Mall West Lake Hanoi, a commercial center, took the spotlight. Unveiled in the latter part of the year, this project boasts an expansive 72,000 square meters of rental space, marking it as the largest mall development in the last four years.
- According to Vingroup JSC, in 2023, the company managed 83 Vincom shopping malls across Vietnam. The conglomerate, based in Vietnam, specializes in real estate and retail and offers services in healthcare and hospitality.
- LED screens and digital displays are transforming the advertising landscape in retail. These technologies empower brands to craft interactive ads, capturing consumer attention and fostering deeper engagement.
- Advanced data analytics enable more targeted advertising campaigns. Retailers can use data to understand consumer preferences and behaviors, allowing them to create personalized ads that resonate with their target audience.
