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Digital transformation of advertising to keep up with global trends

Vietnam's advertising industry still holds significant potential for growth. To fully capitalize on this market, businesses must rapidly adapt to global trends.

This assertion was made by Can Van Luc, a member of the National Monetary and Fiscal Policy Advisory Council and a member of the National Committee for Pacific Economic Cooperation (VNCPEC), during the forum "Current status of the advertising industry development in Vietnam and the world, from reality to expectations" held as part of the Vietnam Advertising Festival 2024 in Binh Duong.

According to Mr. Luc, Vietnamese businesses have only tapped into a small portion of the advertising market, with revenues ranging from $2.5 to $2.8 billion. In contrast, China's advertising market is valued at a staggering $185 billion, approximately 80 times larger than Vietnam's, despite having only 14.5 times Vietnam's population. This highlights the vast untapped potential of the Vietnamese advertising market.

Mr. Can Van Luc shared at the discussion.

Mr. Luc identified three primary reasons for Vietnam's slower advertising market growth compared to other countries. First, recent economic fluctuations have led to a decline in the advertising market, while China's market continues to grow at a rate of 10-15%.

"This raises the question of whether domestic businesses are not doing enough or are not being flexible enough," Luc said.

Second, Vietnamese businesses have not diversified their advertising formats, particularly digital advertising.

"Young people today prefer digital advertising, but digital advertising revenue remains low, accounting for only one-third of total advertising revenue, compared to 60% in Korea and China, and 80% in the United States. This presents significant challenges for our businesses," Luc said, adding that the final reason is the government's advertising management framework.

Commenting on the draft amendment to the Advertising Law, Luc suggested that issues related to digital advertising should be carefully addressed, particularly the responsibilities of both the advertiser and the advertising agency. In addition, regulations on advertising content also require careful consideration. The advertising industry intersects with numerous sectors such as information, communications, cybersecurity, culture, and tourism, and therefore, it is necessary to harmonize these sectors to avoid overlaps.

Experts and delegates shared their insights at the forum.

At the forum, Mr. Le Minh Tuan, Deputy Director of the Copyright Office of Vietnam - Ministry of Culture, Sports, and Tourism, shared that advertising has been recognized as one of the 12 key sectors in Vietnam's Cultural Industry Development Strategy to 2020 with a vision to 2030.

In recent years, the advertising industry has achieved significant milestones, experiencing substantial growth in both quantity and quality, as well as increased revenue for businesses operating in this sector. Moreover, advertising has played a vital role in promoting goods and services, acting as a bridge between producers, businesses, and consumers.

"Regarding copyright, the advertising industry is closely linked to creativity. Using others' creative works to create new advertising products constitutes intellectual property infringement and copyright violation. Therefore, addressing this issue is crucial for the development of the advertising industry. Strong copyright protection benefits both advertising agencies and content creators," Mr. Tuan emphasized.

According to Mr. Tuan, to protect copyrights in advertising, it is necessary to intensify efforts in disseminating legal regulations to raise public and business awareness of copyright protection in advertising products.

"We are strengthening our collaboration with inspection agencies, police, and state management authorities to inspect, verify, and handle violations in the advertising sector in accordance with intellectual property law. We hope that businesses will join us in promptly reporting and detecting advertising violations so that we can protect advertising businesses. Upon receiving feedback, we will cooperate with relevant agencies to conduct inspections," Tuan stated.

Sharing the development direction of the advertising industry, Mr. Nguyen Van Thuat, Deputy Director of the Department of Foreign Information, Ministry of Information and Communications, highlighted that in the current 4.0 era, digital transformation is an inevitable trend for all industries. The advertising industry is no exception; therefore, advertising businesses need to focus on digital transformation to keep pace with the world.

Citing the example of the press, Mr. Thuat mentioned that print newspapers have been significantly impacted by digital transformation, and those that are slow to adapt will be left behind.

Meanwhile, Mr. Nguyen Quang Nhat, Vice Chairman of the Ho Chi Minh City Advertising Association, noted that Vietnam's outdoor advertising market is performing better than its regional counterparts. Businesses have devised numerous creative strategies to reach consumers more effectively, resulting in improved outcomes.

However, Vietnamese outdoor advertising businesses still face several challenges. A notable issue is the lack of software for managing advertising billboards and personnel. Consequently, Vietnamese businesses need to enhance their management capabilities to become more professional in advertising.

Vietnam Advertising Festival 2024 - Vietnam AdFest - Binh Duong 2024 took place from July 11-13 at WTC Expo International Exhibition Center (A19 Hung Vuong, Hoa Phu Ward, Thu Dau Mot City, Binh Duong Province). The program received support from the Ministry of Culture, Sports and Tourism, the Ministry of Information and Communications, and the People's Committee of Binh Duong province; organized by Dong Nam Advertising and Commercial Promotion Joint Stock Company and WTC Binh Duong One Member Company Limited under the chairmanship of the Vietnam Advertising Association and related units.

Advertising is identified as one of 12 cultural industry sectors in Vietnam, included in the Government's cultural development strategy until 2030. Vietnam Advertising Festival 2024 is a large-scale event, aiming to introduce and promote the potential, strengths and importance of the Vietnamese advertising industry in particular and Vietnamese cultural industries in general.

During the three days, the Festival will bring visitors rich experiences with a variety of activities from exhibitions, forums, seminars to competitions, sports fairs, job fairs...

Within the framework of Vietnam Advertising Festival 2024, the 14th Vietnam International Advertising Equipment & Technology Exhibition 2024 - VietAd 2024 - Binh Duong was taking place with a scale of 250 booths. The event brings together leading domestic and international businesses in the advertising field. After 13 successful organizations, the VietAd Exhibition has proven its appeal as the only specialized exhibition of advertising equipment and technology in Vietnam, recognized by the Global Exhibition Association - UFI as an excellent exhibition. international standard.

According to Tiep Thi & Gia Dinh Magazine

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1. Binh Duong Provincial News: Vietnam Advertising Forum 2024

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