HÀ NỘI – Despite a large number of Internet users, investment for online advertisement in Việt Nam remains modest, a conference heard on Thursday.
Despite a large number of Internet users, investment for online advertisement in Việt Nam remains modest, a conference heard on Thursday. – Photo thienngaden.vn
The Institute for Brand and Competitiveness strategy co-ordinated with the Việt Nam Internet Association and Việt Nam Digital Communication Association to organise a conference on building enterprise branding in the digital era in Hà Nội.
Over the past decade, the Internet boom has had a significant impact on marketing activities, as well as the building and positioning of brands in the market.
Internet has also created stronger brand awareness than ever before and increased the number of people who know brands. According to the Institute for Brand and Competitiveness strategy, Việt Nam ranks 16th among the top 20 countries with the highest number of Internet users, with nearly 50 million people, of which, 60 per cent are young.
The Internet has become a popular source of advertising to users who want to search for product information. Seventy-three per cent of Vietnamese consumers seek out information on the Internet before making purchase decisions.
Most consumers in Việt Nam choose products and services based on brand identities.
Therefore, experts advised businesses to make changes to their business operations, adjusting brand identity to avoid falling behind compared to rivals.
To build brands in the digital era, businesses need to increase interaction in different environments, including the online environment, said Nguyễn Quốc Thịnh, an advisor for the National Trademark Programme.
"Businesses should not skip electronic branding, a strong interactive environment with low associated costs,” said Thịnh.
Enterprises need to rethink the way they build their brands, not just their logos or advertising in the media, he said.
Currently, the application of the Internet in general, and digital technology in particular, to create and develop brands is still limited.
Data from Cimigo, a market research firm, showed that investment for online advertising in Việt Nam was only US$15 million in the past year.
Meanwhile, according to statistics from TNS Media Vietnam, the cost of online advertising accounts for less than 5 per cent of the total advertising costs, while 95 per cent of advertising spending is still through television, newspapers, magazines, even though these forms are more expensive.
Vũ Xuân Trường from the Institute for Brand and Competitiveness strategy said that many businesses were paying attention to profits and business strategy, while their strategies for branding remained "vague”.
Therefore, businesses need a better strategy in branding in the digital era. In particular, businesses should focus on social networks due to their widespread use.
Experts said that businesses need to take advantage of opportunities afforded by the Internet to build their brands. Enterprises also need to increase connections with consumers, while ensuring the quality of goods and services. - VNS
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