Vietnam's marketing technology landscape is evolving rapidly, propelled by a niche group of "whale" users who are driving a large portion of in-app purchases.
Founded in 2012 in Berlin, Adjust quickly emerged as a leader in mobile advertising analytics, providing solutions that help businesses optimize their marketing strategies.
However, it wasn't until early 2020 that the company officially entered the Vietnamese market. Initially, Simon Dussart, then Chief Customer Officer and now CEO of Adjust, and his team faced a common perception: Vietnamese consumers favored free services, particularly in tech-driven industries.
This belief was reflected in the Ministry of Information and Communications' 2023 report, which ranked Vietnam 11th globally in mobile app downloads but only 34th in spending on digital services. Within ASEAN, Vietnam placed sixth. This contrast posed a challenge for Adjust and its competitors.
Nevertheless, Dussart was pleasantly surprised by how fast the Vietnamese market evolved. "Vietnamese users are no longer just looking for free services. They are increasingly willing to pay for premium experiences, from subscription packages to in-app purchases," Dussart said.
According to Sensor Tower, in-app revenue in Vietnam reached $385 million in 2023, marking a significant shift in consumer behavior.
This growth is largely driven by "whales," a small group of users who make large in-app purchases. Despite accounting for only 2 to 5 per cent of the user base, they contribute disproportionately to app revenue.
"In some cases, users spend anywhere from $500 to $1,000 on in-app purchases, particularly in gaming or utility apps," said Kapil Bonde, Adjust's market evangelist.
He added that free-trial models, especially in photo-editing apps, often lead users to start with free services but transition to paid offerings once they become engaged.
During Dussart's second visit to Vietnam in October 2024, he was impressed by the rapid growth of the app market. In 2023, app downloads increased by 12 per cent, and Vietnam now ranks ninth globally for time spent on mobile apps, with 104 billion hours logged annually.
This expansion is driven by three key factors. First, smartphone penetration is high, with 72 million mobile internet users in 2022, a number projected to reach 83 million by 2028. Second, widespread internet access allows users to engage with mobile apps anytime, anywhere. Lastly, a young, tech-savvy population is eager to try new technologies and spend on digital services.
"Almost every mobile app needs to run ads to grow its user base," Dussart noted. With fierce competition in gaming and e-commerce apps, developers need to understand which campaigns drive the most revenue and which user segments are the most profitable.
"If businesses don't measure their ad performance effectively, they risk wasting money," Dussart added. This is where tools come into play, helping developers track user behavior and optimize their campaign budgets.
"Our focus is on key areas like data security, fraud prevention, and emerging technologies such as AI and machine learning. Our goal is not only to help customers maximize their marketing budgets but also to prevent fraud in mobile environments, such as fake installs or fraudulent transactions," Dussart explained.
Vietnam also offers Adjust a unique advantage in data collection. The country boasts one of the highest global opt-in rates for data sharing, at 45 per cent, just behind the UAE (49.6 per cent) and Brazil (47 per cent).
Starting with just a handful of clients, Adjust now serves over 90 businesses in Vietnam. While initial client meetings were concentrated in Ho Chi Minh City, Dussart now finds himself traveling between Ho Chi Minh City and Hanoi for customer events and even partner-organized football matches.
"The mobile app development community in Vietnam is tight-knit and dynamic. It feels like everyone knows each other, regularly meeting and collaborating," he said.
Adjust's customer base, once dominated by gaming companies, has now expanded into sectors like finance and utilities. This diversification of app categories, combined with the growing willingness of users to spend, is fueling the continuous growth of Vietnam's app market.
Looking ahead, Adjust plans to maintain its growth momentum. "We will continue doing what we've been doing successfully over the past four years and expand further to better support our customers. Vietnam is one of Adjust's fastest-growing markets globally," Dussart stated.
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