Photo: Brands Vietnam
Substantial growth to come from $78 mn in 2017, according to Appota report.
by Hai Van
- Mobile app ads overtake mobile web in Vietnam
- Viettel launches new mobile apps
- Enterprises moving to social networks for advertising
Spending by enterprises on mobile advertising will increase to $220 million by 2020, according to a report on Vietnam’s mobile app market in the first half of 2018 released by leading mobile internet platform Appota on July 11.
Vietnam’s mobile advertising market is quite small compared to elsewhere in the region but Appota estimates spending will increase rapidly, reaching $200 million by 2020 after standing at $78 million in 2017.
Though the mobile segment in Vietnam is growing quickly, the cost per installation (CPI) in the country is very low. “The mobile app market is expanding, creating a diverse playing field and presenting opportunities for large and small businesses,” said Mr. Dang Thai Son, Chief Marketing Officer at Appota. “Mobile ecosystems tend to be more rigorous and provide a solid foundation for the development of Vietnam’s economy.”
The report also pointed out that Vietnamese shoppers research a particular product on their phone and many then purchase it on their computer.
Seventy-two per cent of all e-commerce site visits originate from smartphones and 53 per cent of online purchases are made via phones. Mobile e-commerce in Vietnam still has the lowest penetration rate in the region but recorded strong growth in 2017. Electronic payments were estimated at $6.4 billion, an increase of 22 per cent.
Vietnam is still a cash-based society, and 46 per cent of Vietnamese respondents to the Appota survey said they do not have a bank account and were concerned about disclosing card details online. Therefore, 88 per cent of e-commerce transactions are paid cash-on-delivery.
Fintech remains in its infancy in the country, presenting challenges in educating consumers about the benefits of opening a bank account and using payment cards and in engendering customer trust in online payment services.
The report also revealed that mobile e-sports have become a new trend, with e-sports on mobile devices continuing to attract players and huge amounts of investment and revenue.
Appota is a leading mobile internet platform provider in Vietnam, with more than 45 million mobile users and $25 million in revenue in 2017. Its main business lines are games publishing (Gamota), mobile payments (AppotaPay), mobile advertising (Adsota), and server hosting (Kdata).
It regularly publishes reports on user behavior, mobile app market overviews, e-sports reports, and up-to-date, objective information on the market.