Internet & Media Shifts

Maximizing your Media Mix

Our media landscape is evolving…
 Newspapers Newspapers
Newspapers
Magazines Magazines
Magazines
Broadcast TV Online News Portals
Broadcast TV
Broadcast Radio Broadcast TV
Broadcast Radio
Cinema Cable TV
Cinema
Outdoor/Transit Cinema
Outdoor/Transit
Cassette Tapes Web TV/Video
Walkman Broadcast Radio
VCR Internet Radio
Cable TV Outdoor/Transit
Personal Computer Interactive Outdoor/Transit
Internet CD/DVD Player
Email MP3 Player/iPod
Console Video Games TiVo/DVR
PC Video Games Personal Computer
Pagers Notebook/Netbook
Cell Phone Cell Phone

evolving… SMS Smart Phone/PDA

SMS/MMS
Mobile Internet
Console Video Games
PC Video Games
MMORP Games
Mobile Games
Email
Instant Messaging
Search
Internet SMS
Podcasts
Blogging
Social Networks
Microblogging
Web 2.0

1960s 1980s Today

The missing link in Vietnam…
Agenda
1. Old vs New Media Overview

2. The Internet Landscape

3. Internet Media Habits

4. Advertising Media Shifts

5. Q & A

6. Red / Blue Ocean Media Mix Analysis Workshop

1 Old vs New Media Overview
Media Access/Device Ownership
(%) 2006 2007 2008

97 98 99

84 86 86

63
53
50
43 41
41
36 34 33
25
18
8

TV Set DVD/VCD/VCR Mobile Phone Radio Personal Home Internet

Player Computer Access

Mobile
Mobile Phones,
Phones, PCs
PCs and
and In-home
In-home Internet
Internet are
are driving
driving media
media access
access points
points

Base: Males and Females aged 15+ across all 4 major cities (Ho Chi Minh City, Hanoi, Da Nang and Can Tho)
Source: TNS Media Habits Survey (2006-2008)
Media Reach
(%) 2006 2007 2008

99 99100

83 85 84
76 77
73
62 60 62 62 64
57
51 52
44 42
33
27

15
11 11

TV (Past Week) Outdoor (Past Newspaper Magazine (Past DVD/VCD/Tape Radio (Past Cinema (Past 3 Internet (Past
Week) (Past Week) Week) (Past Week) Week) Months) Week)

TV
TV is
is still
still King…
King… but
but Internet
Internet is
is by
by far
far the
the fastest-growing
fastest-growing medium
medium
Base: Males and Females aged 15+ across all 4 major cities (Ho Chi Minh City, Hanoi, Da Nang and Can Tho)
Source: TNS Media Habits Survey (2006-2008)
 Home Internet Access
2.7
2.7 users
users
Home
Home Computer
Computer // Internet
Internet Access
Access (%)
(%) per
per home
home
connection
connection
79
Total
66

97
Class A
91

87
Class B Affordability
Affordability is
is driving
driving
78
high
high in-home
in-home penetration;
penetration;
Class C
84 over
over half
half of
of SEC
SEC ABC
ABC
68 users
users being
being connected
connected
60 at
at home
home today
today
Class D
47

28 Have computer at home

Class E/F
14 Have home internet access

Base: Past month internet users aged 15+ across all 4 major cities (Ho Chi Minh City, Hanoi, Da Nang and Can Tho)
Source: Yahoo!-TNS Net Index 2008
 Monthly Internet Expenditure
US$36M
US$36M
Monthly
Monthly Personal
Personal Spending
Spending on
on the
the Internet
Internet (VND)
(VND) monthly
monthly

Total (4 cities) 174,071

Ho Chi Minh City 191,145

Hanoi 155,155

Net
Net users
users spend
spend
an
an average
average
Da Nang 133,258
VND174,000
VND174,000 oror
US$10
US$10 per
per month
month
Can Tho 115,475 on
on the
the Internet
Internet

Base: Past month internet users aged 15+ across all 4 major cities who have home internet access
Source: Yahoo!-TNS Net Index 2008
Summation- Old vs New Media Overview

Traditional media platforms are stagnating in growth, while mobile
and Internet media are growing rapidly

Only Internet Media reach is increasing in Vietnam

In-home internet use is increasing Internet spend and number of

multiple home users

Marketers must review their media mix to assure that maximum

exposure and cost efficiencies are in place to maximize
communications and reach
2 The Internet Landscape
 Internet Usage by City
Past
Past Month
Month Reach
Reach (%)
(%)
35%
2005
37%
Total (4 cities) 41% 2006
53%
2007
40%
2008
41%
Ho Chi Minh City 49%
60%
37%
42%
Da Nang 49%
54%
35%
38%
Hanoi 42%
49%
19%
20%
Can Tho 17%
29%

Internet
Internet usage
usage isis not
not just
just aa HCMC
HCMC phenomenon;
phenomenon;
usage
usage is
is also
also high
high in
in Hanoi
Hanoi and
and Da
Da Nang
Nang
Base: Males and Females aged 15+ across all 4 major cities (Ho Chi Minh City, Hanoi, Da Nang and Can Tho)
Source: TNS Media Habits Survey (2005-2008)
Online User Profile

Age
Age Gender
Gender Marital
Marital Status
Status

15%
35% 8% 40+ 37%
44%
10% 52%
35-39 64%
Female Married &
12% 18%
30-34 Others
12% Male Single
24% 25-29
14% 63%
20-24 56%
48%
14% 36%
26% 15-19
14%

General Netizen* General Netizen*

General Netizen*

Skewed
Skewed towards
towards young
young (68%
(68% <29
<29 years),
years), Male
Male (56%)
(56%) and
and Single
Single (63%)
(63%)
Base: * Past month internet users aged 15+ across all 4 major cities (Ho Chi Minh City, Hanoi, Da Nang and Can Tho)
Males and Females aged 15+ across all 4 major cities (Ho Chi Minh City, Hanoi, Da Nang and Can Tho)
Source: Yahoo!-TNS Net Index 2008; TNS Media Habits Survey 2008 Wave 2
 Location of Internet Access
%
% Accessed
Accessed from
from Place
Place (Past
(Past 33 Months)
Months) Share
Share of
of Internet
Internet Hours
Hours

66
Home
56

Internet cafes 53 Internet cafes Home, 55%

& WiFi & WiFi
Hotspots 26
Hotspots, 19%

24
Work
14
Mobile phone,
1%
Friend's 20
Friend’s
House 1 house, 2%

12 Currently Use Work, 20%

School School/Public
2 Most Often Use library, 2%

Home
Home use
use has
has overtaken
overtaken internet
internet café’s
café’s due
due to
to increased
increased PC
PC ownership
ownership
and
and lower
lower cost
cost of
of broadband…
broadband… creating
creating huge
huge marketing
marketing possibilities
possibilities
Base: Past month internet users aged 15+ across all 4 major cities (Ho Chi Minh City, Hanoi, Da Nang and Can Tho)
Source: Yahoo!-TNS Net Index 2008
 Location & Frequency of Usage
Place of Access

Home School Work Internet cafes WiFi Hotspots

Several times a day 45.3 0.7 49.9 6.1 8.3

About once a day 28.4 11.7 18.9 10.9 1.1

3 - 4 times a week 16.3 24.6 17.9 27.8 38.1

About once a week 5.6 37.4 6.9 22.6 23.9

2-3 times a month 2.7 11.3 1 14.6 4.1

Less Often 0.9 4.7 2.3 6.7 7.5

Frequency per week 6.3 2.2 6.0 2.6 2.4

Average hours per week 9.7 0.4 3.6 3.0 0.3

Average hours per session 1.5 0.2 0.6 1.2 0.1

Home
Home Internet
Internet use
use is
is 3X
3X more
more than
than Internet
Internet café
café use
use

Base: Past month internet users aged 15+ across all 4 major cities (Ho Chi Minh City, Hanoi, Da Nang and Can Tho)
Source: Yahoo!-TNS Net Index 2008
Summation- The Internet Landscape

Since 2005 Internet usage (last month) has risen from 35% to 53%
in urban Vietnam.

Profile is still skewed to young (15-25 yr = 50%) male and singles,

this limiting certain category and product advertising applications

In-home use has surpassed I-café use (55% vs. 19%)

This has increased time used by 3 times

Though still growing, Internet is partially limited due to it young

audience, but due to in-home use penetration, internet usage is
tripling and changing surfing behavior
3 Internet Media Habits Decoded
 They use the web mostly to…
Find out things that I need to know 56 Top
Top 22 Boxes
Boxes (%)
(%)
Get information I need 53
Be entertained by playing games, watching video etc 44
Connect with my family or friends 44
E-mail other people 31
Communicate with others 23
Do research 22
Find interesting sites or web pages 22
Explore new sites 20
Express and share my views with others 15
Connect with people who share similar interests 14 Information
Meet new people online 13 Communication
Just surf for fun 12 Networking/Community
Buy things 8
Fun/Entertainment
Make online transactions 7
Make money or benefit financially 6 Commerce/Transaction

Seeking
Seeking information,
information, fun
fun &
& entertainment
entertainment use
use of
of the
the internet
internet
very
very much
much reflects
reflects the
the heart
heart and
and soul
soul of
of most
most Vietnamese
Vietnamese
Base: Past month internet users aged 15+ across all 4 major cities (Ho Chi Minh City, Hanoi, Da Nang and Can Tho)
Source: Yahoo!-TNS Net Index 2008
Curiosity creates clicks
Ad
Ad Types
Types Clicked
Clicked on
on (%)
(%)
TOTAL MALE FEMALE
Mobile Phones 26.5 29.1 23.3
Computers/Printers 16.2 22.3 8.6
Motorcycles 13.0 16.4 8.7
VCD/DVD Movies 12.7 13.0 12.2
Footwear 12.0 8.4 16.6
Car/Other auto 9.4 13.5 4.3
vehicle
Health & Fitness 8.1 4.9 12.0
Hair Care 8.0 2.2 15.2
Skin Care 7.9 2.6 14.6
Deodorant 6.7 4.2 9.9
Banking services 5.5 6.4 4.3
Sporting Goods 5.0 6.6 2.9

AA whopping
whopping 30%
30% have
have clicked
clicked on
on banners/ad
banners/ad links
links in
in the
the past
past month!
month!
…
… leading
leading to
to the
the assumption
assumption that
that online
online ads
ads are
are well-received
well-received in
in Vietnam
Vietnam
Base: Past month internet users aged 15+ across all 4 major cities (Ho Chi Minh City, Hanoi, Da Nang and Can Tho)
Source: Yahoo!-TNS Net Index 2008
Internet Front Pages
Currently
Currently Use
Use (%)
(%)

78
Google

Yahoo! (Net) 39

Internet
Internet Front
Front Pages
Pages could
could
be
be major
major Internet
Internet Portals,
Portals,
VNExpress 27 News,
News, Sports,
Sports,
Entertainment
Entertainment oror
Social
Social Networking
Networking sites.
sites.
Vietnamnet 25

Base: Past month internet users aged 15+ across all 4 major cities (Ho Chi Minh City, Hanoi, Da Nang and Can Tho)
Source: Yahoo!-TNS Net Index 2008
Popular News and Music Sites

News Sites Music Sites

Currently
Currently Use
Use (%)
(%) Currently
Currently Use
Use (%)
(%)

Tuoitre 52 Nhacso 43

Dantri 49 Zing 40

Thanhnien 42 Nghenhac.info 20

Vietnamnet 35 Nhaccuatui 18

VNExpress 31 Nhac.vui 15

Yahoo! (Net) 28 Nhac 8 7

Base: Past month internet users aged 15+ across all 4 major cities (Ho Chi Minh City, Hanoi, Da Nang and Can Tho)
Source: Yahoo!-TNS Net Index 2008
 Web-based Email Instant Messengers Search Engines

Currently
Currently Use
Use (%)
(%) Currently
Currently Use
Use (%)
(%)

96 98 94
Yahoo! (Net) Yahoo! Google

Gmail 20 MSN 3 Yahoo!

28

Hotmail 5 Skype 3 MSN 11

Base: Past month internet users aged 15+ across all 4 major cities (Ho Chi Minh City, Hanoi, Da Nang and Can Tho)
Source: Yahoo!-TNS Net Index 2008
Where are they socialising?
Currently
Currently Use
Use (%)
(%)

Yahoo! 360 85

Youtube 46

We
We know
know that
that many
many
Google Groups 27 Vietnamese
Vietnamese users
users are
are
socialising
socialising on
on dating
dating and
and
online
online personals
personals sites
sites too!
too!
Yahoo! Groups 21

Myspace 5

Facebook 4

Base: Past month internet users aged 15+ across all 4 major cities (Ho Chi Minh City, Hanoi, Da Nang and Can Tho)
Source: Yahoo!-TNS Net Index 2008
Summation- Internet Media Habits Decoded

Seeking information, fun & entertainment use of the internet very
much reflects the heart and soul of most Vietnamese

Internet advertising does create genuine interest in Vietnam, with up

to 30% of surfers “through clicking” on ads, compared to 9% average
in Asia. Mobile Phones / Computers /Printers / Motorcycles create the
most interest.

For socializing, Web based emails and Instant Messenger, Vietnam is

Yahoo country, while Google drives front page and search engines

These trend will eventually decline due to increased exposure

to internet activities, so Digital companies will need to seek
new applications and entertaining devices to maintain
consumer interest
4 Advertising media shifts
Daily Home activities- Top 4

66%
7%
7%
7%
4%
TV
TV dominates
dominates followed
followed by
by reading,
reading, using
using the
the computer
computer
and
and watching
watching movies
movies and
and listening
listening to
to music
music

27 Source: VietCycle 1999-2008

Advertising spend breakdown - 2008
Internet (est.)
M agazines 0.4%
8%
Newspapers
,
16%

Radio
0.6%
TV 75%

TV Radio Newspapers M agazines Internet (est.)

TV is King followed by Print. However, Internet is growing

Source: TNS Media Co.

 When was the last time you read / watched / listened / accessed
to?

Media Penetration
Yesterday w atching TV Readership Yesterday listen to Radio
Yesterday w atching Video Last w eek gained access Internet Visit to cinema last 3 month

100 97.1
92.5 93.5 92.5
89.9 90.1
83.8 84.0
80 79.8
Base: % of total population

61.8
60

44.7 44.8
41.9
40 39.1 36.9
30.6
25.9 22.7
24.3 26.7
20.8 22.7
18.9 20.7
20 15.2 14.5 15.9
14.4 13.5

2.3
0
Total HA NOI DA NANG HCMC CAN THO

TV and print still dominate media penetration

Source: TNS Media Co.

 Television
65 local TV stations

Growth of Cable & terrestrial TV

Viewership is down for F-T-A
Viewership of Cable is up

Print
 713 daily and periodical publications
 77% urban population read last week
 All major newspapers also online
 18% growth, largely driven by Magazine
TV is over fragmented, while print is becoming more competitive

Source: TNS Media Vietnam Source: TNS Media Vietnam

 Significant growth of cable TV
Comparison between wave 2/2007 & wave 2/2008

TOTAL HA NOI DA NANG HCMC CAN THO

Mode of reception
2007 2008 2007 2008 2007 2008 2007 2008 2007 2008
Ordinary antenna 51.9 39.5 53.1 39.6 81 69.3 32.6 27.1 93.1 83.5
Satellite/DTH 0.1 0 0.1 0 0.1 0 0 0 0.1 0
Through cable operator 48.2 64.2 40.3 53.3 36.8 40.1 70.6 82.1 2.6 19.9
MMDS 0 0 0.1 0 0 0 0 0 0 0
Digital Terrestrial 6.7 6.8 18.2 18.3 5.5 7.8 2.2 1.4 1.6 0.3
Cable is growing in all studied markets but Terrestrial
TV shares are high in Hanoi & Danang
Source: MHS 2007 and 2008
 Internet
Vietnam online Ad Spend ($M)
 Highly under utilized 10% 80

9%
 US $10 mil. /yr est. Online Advertising
70
8%
 Captivated, young audience 7%
Internet Users 60

% of ATL Advertising 50
 Wave of the future 6%

5% 40
 66% home penetration in 4 Source: VinaGames Projections
4%
key Cities 30
3%
20
2%
10
1%

0% 0
2007E

2008E

2009E

2010E

2011E

2012E

2013E

2014E
Internet is becoming a genuine advertising opportunity

Source: TNS Media Vietnam

 Media Exposure Trends
Time Spent Per Day (Mins)
295

253
2006 2007 2008
233

46 45 46 43
22 24 21 22 30
9 10 8

TV Newspaper Magazine Radio Internet

Time spend watching TV has decreased by 1 hour per day since 2006,
while Internet is the only medium growing (21 minutes / day)

Base: Males and Females aged 15+ across all 4 major cities (Ho Chi Minh City, Hanoi, Da Nang and Can Tho)
Source: TNS Media Habits Survey (2006-2008)
Different targeting opportunities…
Past Week Reach (%)
100
TV

80 Posters/Billboards

Newspaper
60
Magazine

40
Radio

Cinema
20

Internet
0
Total Male Female SEC A/B SEC C SEC D SEC E/F

Magazines for females; Radio more for lower SEC;

Internet for males and the affluent
Base: Males and Females aged 15+ across all 4 major cities (Ho Chi Minh City, Hanoi, Da Nang and Can Tho)
Source: TNS Media Habits Survey 2008 Wave 2
Internet – strong affinity with Vietnamese youth
Past Week Reach (%)
TV
100
Posters/Billboards

80
Newspaper Vietnamese
Vietnamese youth
youth
are
are driving
driving
Internet
60
Magazine
internet
internet use,
use,
meaning
meaning Internet
Internet
will
will become
become aa
40
Radio mainstay
mainstay ofof
communication
communication in in
20
years
years to
to come
come

Cinema
0
Total 15-19 20-24 25-29 30-34 35-39 40+ years

Base: Males and Females aged 15+ across all 4 major cities (Ho Chi Minh City, Hanoi, Da Nang and Can Tho)
Source: TNS Media Habits Survey 2008 Wave 2
 Day in the Life of an Internet User
Watching TV
TV
Listening to Radio
Surfing the Internet
Reading Newspapers
Reading Magazines

Internet

Newspapers
M

M
M

M
PM

PM
M

M
A

0A

0A

0A
0P

0P

0P

0P

0P

0P

0P

0P

0P

0P
00

00

00

00

00

00

00

00

00

00

00
:0

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:0
3:

4:

5:

6:

7:

8:

9:

0:

1:

0:

1:
-2

-3

-4

-5

-6

-7

-8

-9

-2
11

12

11

12
-

1-

1-
-1

-1
01

01

01

01

01

01

01

01

01

01

01

01

01

01

01

01
1-

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01

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:0

:0

:0

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12

12
9:

9:
10

11

10

11
Internet can help fill the gap between traditional media
and provide a truly integrated marketing campaign
Base: Past month internet users aged 15+ across all 4 major cities (Ho Chi Minh City, Hanoi, Da Nang and Can Tho)
Source: Yahoo!-TNS Net Index 2008
The emergence of advertising expenditure (2000 - 2008)
Revenue
26%
500 475

450 18%
400 375 31%
346
350 318
22%
300
262 21%
242
250 220
198
21%
200 16%
162 164 13%
129 128
150 113
127
104 109
98 97
100 80 77
70 60 69 63
50
40 34
50

0
2008 2007 2006 2005 2004 2003 2002 2001 2000

Total TV Print

Ad expenditure has grown by 20% plus per year

rivaled only by India & China globally
Source: TNS Media Vietnam
 Media Ad spend (Q1 2003 - 2008)
Revenue
7%
15%
100 95.55
89.92
90 20%
78.14
80 36%
69.43
70 65.06
60.18
12%
60 54.75
47.67 31%
50 45.21
42.25
20%
40 32.20
29.64 30.66
26.12 27.45
30 23.39
19.85 19.59
17.01 16.47 15.74
20 14.80
12.61 10.73
10
0
Q1/2009 Q1/2008 Q1/2007 Q1/2006 Q1/2005 Q1/2004 Q1/2003 Q1/2002

Total TV Print

A Quarter 1 comparison, Ad spend has increased

by 7%, lead by 17% for TV and minus 15% for Print

Source: TNS Media Vietnam

Summation- Advertising media shifts

TV is still the undisputed King of In-home entertainment & media
spend

However, TV viewership is in decline and Cable is increasing versus

F-T-A viewership, reducing the impact of TV advertising

Internet ad spend is still minuscule, but is Vietnam’s fastest growing

consumed media medium (44 minutes / Day)

Internet based advertising can help fill the gaps in your media mix and
should be used in conjunction with other traditional media mediums
Summation- Advertising media shifts

As advertising continues to grow, Internet advertising should be

seriously be considered as part of any media campaign, especially if
your target is young, male and single.

Internet advertising is here to stay and will be the only growing

media consumption medium for the next 5 plus years
 Red Ocean / Blue Ocean Analysis- Instructions

Break into groups of three or get together with your company colleagues….

Consider how you presently spend on advertising and consider how

Vietnamese consumers are presently using advertising mediums.

Consider what are the barriers that exists for your company at present for
each main medium; TV, Print, Radio, Outdoor, Internet, and why: Cost, target
audience (age, Income), product / service type, Media reach, location, etc.

Write present Barriers in the RED box and present Opportunities in the BLUE
box.

Once complete, think of how media will evolve in Vietnam in the future and fill
in future barriers and Future opportunities.

This will allow you to think forward and how you might create a successful
media mix now and in the future
Present Barriers Present Opportunities

Futures Barriers Future Opportunities

Ralf.matthaes@tns-global.com
www.tnsglobal.com