Hanoi (VNS/VNA) - The mobile advertising marketin Vietnam is expected to reach 211 million USD by the end of this year, according to the “Vietnam Mobile &Smartphone Application Report in the first half of 2020” released by AppotaGroup - a digital entertainment company.

The report said Vietnam ranks6th in Southeast Asia in terms of mobile ad spending and accounts for thelargest share of the digital industry.

Due to COVID-19, the increasingtrend of users using the internet means businesses are choosing digitaladvertising and promotions in response to the pandemic. Of which, mobileadvertising accounts for more than 60 percent of total digital ad spending.

Also according to the report, 47percent of surveyed businesses said they increased their budgets for digitalmedia channels, 31 percent of businesses increased their promotion budgets, 28 percentfocused more on selling on online channels, and only 25 percent changed theirlogistics system.

Dang Thai Son, Marketing Director of Appota Group, said the above figuresshowed that online advertising is increasingly dominating the market,especially advertising content on mobile devices. It is forecast that thespending level in this sector will increase further in the coming years.Therefore, this is fertile ground for digital content advertisers andmarketers.

Under the pandemic, the generaladvertising trend has become digital-focused as digital consumptionskyrocketed. Average downloads per app in Vietnam reached 256,290, which wassignificantly higher than the global average of 154,794 downloads per app.

In Vietnam, the cost-per-install(CPI) rate is relatively inexpensive and has shown a declining trend. Even withthe effects of COVID-19, app usage and downloads have still been risingsharply. For developers, this is the golden period to launch their mobileapplications and reach Vietnamese app users.

Reward videos is also apopular advertising format in the COVID-19 era, especially for game apps onAndroid. Advertising for businesses is also driven by conversion rates asbusinesses focus more on generating revenue as fast as possible to make up forfinancial damage caused by the pandemic.

Developers today are discoveringand defining new ways to make integrated video ad formats even more appealing.At the forefront of this advertising shift is the reward video ad. Rewardvideos have been adapted and designed to be related to the economy in the app.Specifically users will be rewarded with premium content such as coins orcredits after they watch a short video clip.

According to the Appota report,the effective cost per mile (eCPM) worldwide fell sharply in March due to theimpact of the pandemic. Although Vietnam shared this trend, the eCPM of theAndroid reward video format has been quickly recovered since April while eCPMon iOS fell from 2.7 to 2.27 USD in May, its lowest level in the first half of 2020.

The factors driving the rapidrecovery of eCPM on Android was because users play games on the Androidplatform more than iOS. Reward video is also especially suitable for gamers dueto the ability to redeem in-game rewards. This type of ad can bring a lot ofbenefits to developers in terms of user engagement, ensuring an increase inclick-through rate (CTR) and more eCPM.

The report also revealed thatthe number of visits to news sites increased dramatically in the first quarterof 2020 because Vietnamese people are regularly updated with news related toCOVID-19 at the time of the pandemic. Specifically, in the first quarter of2020 compared to the fourth quarter of 2019, general news sites increase from28 to 44 percent of visits, and financial enterprise news sites increase 39 percentof visits.

Thanks to the sudden increase invisits, news sites have become frequently visited addresses and an effectiveadvertising channel. Businesses are quick to recognise customer trends.According to the Influencer Marketing Hub report, businesses around the worldhave increased their advertising budgets 52 percent in news and newspapers./.