Advertising application has been seen as one of the greatest problems faced by small- and
medium-sized enterprises (SMEs), but simultaneously one of the most important activities for
their growth and survival. Therefore, the purpose of this paper is to determine the importance
and role of advertising strategy applied in SMEs. Using a data set of SMEs in Vietnam from
2004 to 2012, we find that firms using advertisement can promote their market expansion
although spending more on advertising has no significant effect. Advertising through street posters,
door-to-door materials and internet are evidenced to be effective channel but those through radio, tivi,
newspapers and trade fair are not. That combining more means of advertising together cannot help to
increase market sales and even it lessen the impact of these good advertising tools above.