Google’s display ad network will change local ad market

Google’s display ad network will change local ad market

The official inauguration of the Google’s display adnetwork is believed to lead to the re-division of the domestic market.

The tendency of Vietnamese ad networks

With the principle “many a little makes a mickle,” gathering thousands of websites, big and small, the ad network can get big strength with hundreds of millions of ad displays reaching to tens of millions of readers. The strength is believed to be equal to the leading newspapers in Vietnam like VnExpress or VietNamNet.

Ad networks have been prospering because of a series of advantages. They offer the payment method in accordance with the ad efficiency (charging on the number of clicks, or the number of displays), allow to address ad pieces to the right targeted clients, and they take initiative in creating and managing ad pieces.

Meanwhile, ad firms, which buy the positions for ad pieces at small websites at low prices and then sell to advertisers at higher prices, obviously have earned big money from ad networks.

Therefore, a lot of a networks have been launched into the market in the last few years. This has led to the sharper division in the Internet media market, where two groups has taken shape. The first one includes the publishers, or the content producers, and the second one comprises of ad firms.

The big guy has joined the market

In last May, in HCM City, Google officially introduced Google Display Adnetwork, allowing the Vietnamese websites to join the network.

With the contract signing with big publishers and the great advantages in technology and the contextual targeting capability, including the keyword contextual targeting, topic targeting, placement targeting…, Google is believed to bring advertisers more attractive choices.

Google’s ad network has also reportedly has other features of audience targeting, interest category marketing and retargeting, which would allow advertisers optimize their advertisements.

The market’s cake will be re-divided

With its popularity and fame in Vietnam, Google’s adnetwork is believed to be the biggest choice of many Vietnamese clients. Therefore, analysts believe that the presence of Google in Vietnam would make the pieces of cake for the existing ad networks smaller.

The cake of the ad network market has been scrambled for by a lot of big guys, including Admarket of Admicro-VC Corp, Eclick of FPT, Trueclick of VNG. The smaller networks -- namely Ambient of Ecom JSC, Lava Network, Adsnet of Vivas-VNPT and a series of foreign display ad networks which have just joined the market, have also got their pieces of the cake.

Analysts have commented that the presence of Google would make the Vietnamese market, which is always modest, become smaller.

Experts think that the mostly likely scenario is that Google would reach its goal of penetrating the Vietnamese online display ad market and obtain the biggest part of the market, the thing it has done in many other countries in the world. And if so, the other networks would have to share the remaining small part of the cake.

As such, the biggest worry for the existing ad networks does not come from the small ad networks which have been mushrooming recently, but from Google, the giant, which could be the threat to any rivals in the market.

vietnamnet