Vietnam: A Fast-Growing OTT Opportunity

AVIA’s Vietnam in View Virtual Event Explored The Rise of AVOD

APAC is a rich region that has embraced streaming video and Vietnam is one of the fastest-growing opportunities. The Statista market forecast reports that VOD sales are predicted to reach US$141 million by 2024, with SVOD making up the lion’s share, estimated to have generated US$71m in 2019, and set to account for US$120m by 2025. 

AVIA’s recent Vietnam In View virtual event on “The Rise of AVOD in Vietnam”—with leaders from Magnite, GroupM Vietnam, The Trade Desk, and POPs Worldwide—delved into what lies ahead for Vietnam OTT advertising as consumption soars.

The Embrace of OTT and Ads

According to Magnite’s APAC research, Vietnam boasts the highest Smart TV usage (27%) in Southeast Asia. The Vietnamese have embraced OTT, with AVOD as the most popular method of OTT viewership: 74% would rather choose a free-streaming or ad-lite platform rather than pay for services. They enjoy mobile as much as TV, where content takes precedence over screen size, and the majority of OTT viewers (54%) spend the most time streaming on mobile.  

Vietnam also stands out as a place where consumers are more likely to engage in post-ad action after watching an OTT ad.  Over a third (53%) Vietnamese OTT viewers made a purchase online, in-store, or with a voucher/promotion after viewing an ad. 

The OTT Advantage: Local Premium Content 

In a cluttered online space where audience attention span is decreasing,  in TV advertising this has fallen from 12 to 8 seconds, having content tailored to audience interest is crucial. 

“Content is a key differentiator for OTT. There should be windows of exclusivity, governed by time and first-runs before releasing it,” said Andrew Nilbert, GroupM Vietnam’s Chief Investment Officer. 

“Premium and exclusive content are uploaded weekly, like music, entertainment, games and comics and we also have two OTT platforms. There’s a lot of content opportunities for brands to work with OTT,” added John Xavier, VP of Brand & Ads Solutions at POPs Worldwide. 

OTT content providers need to abide by strict local laws in Vietnam, where only licensed publishers are able to broadcast. This ensures agencies/brands are able to buy in a brand-safe environment unlike other video-sharing platforms.

POPs Worldwide’s Xavier said brands should exercise their ad budget on OTT, enabling multiple formats to make ads more interactive and customized. This includes running ads during influencer-led livestreams, content integration within the story, and innovation like roadblocks, dynamic creatives, takeovers, and contextual ads.

Measure for Measure: OTT Value

OTT advantages include audience-targeting, high-viewability metrics, and undivided viewer attention, yet ensuring OTT delivers measurable value and proven incremental reach is a challenge. 

“We have to make sure viewability metrics can be measured, delivered, and match client expectations,” said GroupM’s Nilbert, adding that agencies and advertisers will be more willing to pay a premium price if there is a proven benchmark on effectiveness against standard videos. 

Ad Tech Vendors: A Key Support System

SSPs like Magnite work with publishers to add value to video inventory so they’re attractive to buyers through DMPs for better audience targeting and maximized quality. 

According to Anthony Tsang, Magnite’s Business Development Director, “An SSP who works with measurement vendors that support brand safety, viewability measurement, and block invalid traffic, can provide better quality inventory for buyers.” 

Advertisers and DSPs are more aware of the importance of supply path optimization for the most direct path to inventory. “In a fragmented landscape where there’s more than 10 OTT partners, measuring consolidated or incremental reach is a challenge,“ added Giang Nguyen, Lead Director, Inventory Partnerships, The Trade Desk.  A key benefit for clients running campaigns through a DSP is that it’s all through a single platform. 

Moving forward with OTT 

Experts agree that while programmatic trading simplifies the supply chain, more should be done to educate clients on the benefits and justification of higher costs. 

“We simplified the chain and demonstrated our ability to use multiple publishers and value, but from a client perspective. Unless there’s transparency, and a role between linear TV and video sharing, clients won’t just buy based on existing tech, but on the advantage of the technology,” said Xavier.

There’s a mutual understanding of what can be done on the technology adoption front to improve efficiency and user experience.  “We’ve seen Vietnamese publishers and advertisers readily adopt technology. Next, is to insert ads in live linear channels to create a seamless TV-like experience on digital, and to help publishers manage campaigns more effectively between direct sold and programmatic,” said Magnite’s Tsang. He added: “The challenge around positioning and measurement is a fantastic opportunity in terms of quality of content. Clients are actively looking for something different in the video space.”