1. Macro Perspective: Rising USD exchange rate and global advertising costs
Most international programmatic advertising networks charge in USD. Therefore, when the USD exchange rate rises against the VND, the advertising budgets of Vietnamese businesses crossing borders will "inflate," reducing spending efficiency—especially for smaller companies.
Specifically, on dashboards, CPM or CPC is usually displayed in USD (e.g., CPM = 2 USD, CPC = 0.5 USD). However, when paying, businesses must convert these amounts into VND according to the bank or international card exchange rates. For early-stage startups, opening an international payment account carries cash flow management risks. As a result, even if the base CPM/CPC remains unchanged, a rising USD rate will still increase the actual cost when converted to VND.
Example:
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If the rate is 25,000 VND/USD → 350 USD = 8,750,000 VND
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If the rate is 27,000 VND/USD → 350 USD = 9,450,000 VND
Thus, compared to the past, for the same 350 USD spent, businesses now need to pay an additional 700,000 VND when the exchange rate rises.
2. Micro Perspective: Vietnamese businesses facing advertising cost challenges
USD exchange rate fluctuations also directly affect the advertising budgets of Vietnamese businesses.
Specifically: Actual cost (VND) = Advertising cost (USD) × Exchange rate (VND/USD) + International payment fees + Exchange rate differences
Overall, the actual cost does not stop at the advertising cost in USD multiplied by the exchange rate; it also includes international payment fees or differences applied by banks/cards. This results in higher actual spending than initially planned, putting significant pressure on budget planning—especially for small and medium-sized enterprises with limited financial resources. Real CPM and CPC may rise, leading to higher customer acquisition costs.
3. Shared opportunities and solutions for Vietnamese businesses
Facing exchange rate volatility, alongside cost challenges, Vietnamese businesses still have numerous opportunities to turn the situation around and leverage competitive advantages in the domestic market. Specifically, as budgets shift toward local advertising networks to optimize costs, businesses should:
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Optimize campaigns to avoid waste; continuously run A/B tests and refresh creatives to maintain effectiveness.
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Leverage consumer trends: As imported goods become more expensive due to exchange rates, consumers tend to favor domestic brands. This is an ideal moment for local brands to expand market share through digital advertising.
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Adopt technology: Integrate AI and behavioral data analytics to boost campaign efficiency, enabling budgets to "go further" without merely increasing ad spend.
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Invest long-term in branding and content: Branded content, influencer marketing, and native ads on online newspapers help build loyal audiences, reducing dependence on USD fluctuations.
Conclusion
USD exchange rate fluctuations are not only a financial issue but also directly impact digital advertising. For Vietnamese businesses, this presents both a challenge in controlling costs and an opportunity to tap into the domestic market, optimize digital ad channels in VND, and build sustainable brand equity.
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