Opportunities for revenue growth in app industry

According to Russian multinational technology company Yandex Ads' survey released on October 30, titled “Trends and challenges in app revenue growth in Vietnam”, 64 per cent of app publishers feel they lack sufficient resources to increase revenue, with most relying solely on self-taught information from the internet.

The survey also revealed that the app industry faces multiple challenges, including a talent shortage, time constraints, and difficulties in identifying revenue growth strategies. Nevertheless, advertising revenue remains the predominant method, accounting for over half the income of 54 per cent of publishers.

Photo: vir.com.vn

According to congthuong.vn, balancing user experience and revenue generation remains a significant challenge. Speaking at the “Future of app revenue growth in Vietnam” event on October 30, Nana Phan, head of strategic partnerships at Yandex Ads Southeast Asia, stated, “To optimise user experience without compromising revenue potential, publishers should consider factors such as ad placement, frequency, and relevance.”

Industry experts at the event emphasised that partnerships with global technology companies can significantly boost app visibility and revenue. Showcasing Vietnam's development potential to international partners and communities is key to driving growth and investment in the sector.

Major technology companies can contribute expertise, support, and infrastructure to Vietnam's app ecosystem. By establishing local teams, these companies gain deeper insight into Vietnamese app developers' challenges and needs. Expanding into new markets requires careful strategy, including legal compliance and content localisation. Understanding local customs, preferences, and language is crucial for effective user engagement.

The app monetisation landscape is rapidly evolving with emerging trends. AI-generated advertising, personalised content, and AI-powered monetisation models are among the innovations shaping the future. Vietnamese publishers can stay ahead by seizing these opportunities and partnering with industry leaders.

According to German platform Statista, Vietnam ranks fourth globally in app downloads, averaging 10,000 downloads per minute, with users spending four hours daily on apps. Vietnam boasts 1,500 app publishers, with many achieving international success in popular categories, particularly gaming.

Data from the Ministry of Information and Communications shows that in 2023, Vietnamese mobile app downloads reached nearly 300 million, up 1.5 per cent from 2022. Direct revenue from mobile app transactions increased 10 per cent on-year. Notably, apps with over 10 million users include Zalo, Zing Mp3, Bao Moi, MoMo Wallet, MB Bank, VNEID, and My Viettel.

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