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Reaching target shoppers more efficiently

Released at: 15:37, 16/08/2018

Reaching target shoppers more efficiently

Photo: Kantar Worldpanel

Mr. Peter Christou, Expert Solutions Director at Kantar Worldpanel Vietnam, discusses how best to reach your target shopper.

by Peter Christou, Expert Solutions Director, Kantar Worldpanel Vietnam

By the end of 2018 there will have been around VND68 trillion ($3 billion) spent on media advertising by companies in Vietnam, according to GroupM’s “This Year Next Year” report.

Knowing this, it is easy to appreciate why advertisers, media agencies and media owners continue to work tirelessly to better understand the media return on investment (ROI) of the dollars they spend. The fast-moving consumer goods (FMCG) industry is no exception, and, in fact, FMCG manufacturers make up the bulk of that spending! 

Media touchpoint importance

In Vietnam, much like the rest of the world, the media environment is changing rapidly with the rise of digital. Despite that, as of today, TV remains the most relevant touchpoint to FMCG shoppers in both Urban 4 Key Cities (Ho Chi Minh City, Hanoi, Can Tho, and Da Nang)) and Rural Vietnam. In Urban 4, there is a 17 per cent higher absolute consumption (Reach x Frequency) than the next biggest touchpoint, which is digital, while in Rural, though swiftly increasing smartphone ownership is driving up the number of connected households, the overall reach of digital is slightly less than half that of TV.

This is probably the most topical battle within the media industry today, as advertisers weigh up the two main touchpoints and think about how much money to switch out of TV to digital.

If we look at projected media spending in Vietnam, TV is expected to drop to a 66 per cent share of spending in 2018 while online could reach 30 per cent - reflecting the fact that TV still offers the greatest potential in terms of total exposure.

However, interestingly, if we look at the absolute media consumption of each of the key channels among the key decision makers, we see that digital accounts for over 43 per cent in Urban 4 Key Cities. Should you be increasing the proportion of media spend for digital in your media plans?

And what if we look only at millennial housewives - the talk of the town among marketers today? Digital consumption accounts for 63 per cent in Urban and already 48 per cent in Rural! Some might say then that spending on digital remains lower than it should be!

A key decision maker is averagely exposed to three to four media touchpoints, so don’t forget there are other media touchpoints we can use too!

Newspapers, magazines and outdoor are seeing less spending over time in Vietnam, even though outdoor continues to be second most effective in reaching FMCG shoppers. Sure, the engagement window (frequency) is much smaller.

As you can see, with the number of different touchpoints available to use, the ability to segment your target audience becomes the defining step of whether your investments are made effectively.

Differentiating household main shoppers by region

One of the most common ways to segment key target audiences is by region. In Vietnam, this is essential, because we all know that the culture and shopping behaviors of each region can differ significantly due to historical reasons and cultural backgrounds. It is fair then that the same can be expected for media consumption.

In Urban, some of the key differences we see between the top two cities are that Ho Chi Minh City skews slightly more towards traditional media channels while Hanoi is more skewed towards digital.

While the reach of digital in Ho Chi Minh City is slightly higher, those in Hanoi are spending more time online. Hanoians spend on average 3.1 hours a day online compared to 2.6 hours on TV, so it is fair to say that digital channels can work well in Hanoi.

In Rural, it is in the south that digital accounts for a greater proportion of media consumption. Again, though penetration is slightly lower than in the central region or the north, the amount of time spent online is higher, at around 2.2 hours per day compared to 2.1 hours for TV - the only region in Rural where time spent online is higher than TV.

Targeting by buyer behavior

Analyzing groups of consumers by their buying behavior can ensure our media investment goes to the right place. Some examples might be those buying your category but not your brand, or those who recently switched from your brand to a competitor.

To demonstrate further about what we mean, we can take a closer look at one of the biggest FMCG markets in Urban 4 in Vietnam.

With penetration of over 95 per cent and a need for everyone to use the FMCG category, it can be argued that all key decision makers are broadly the target for any brand in this market. Many brands might then try to spread their investment and focus on reaching the most people - if you remember back to the start of this article, TV remains the most effective channel to talk to shoppers in Urban 4 key cities.

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