MANILA - Even with the decline in advertising minutes, airtime revenues of media giant ABS-CBN Broadcasting Corp. continued to rise for the first 6 months of 2009.
According to ABS-CBN Chief Research and Business Analysis Officer Vivian Tin, the company's ad spots, although less, provide more value to their clients.
"We make sure that programming and packages have been productive for clients. Ad minutes may have been down, yet airtime revenues are still up," Tin said during ABS-CBN's investor and press briefing held Wednesday.
Aside from airing their advertisements between shows, she said ABS-CBN provides its clients with program intrusions or endorsements incorporated into a show's script.
"Over the last few years, we've decided that we want clients to realize the value that we give," she said.
ABS-CBN's advertising minutes fell 7% in the second quarter and 13% in the first 6 months of the year. But the company posted a 12% growth in airtime revenues for the second quarter at P3.96 billion, driven mainly by ABS-CBN's record monthly revenues of P1.4 billion in May.
This brought ABS-CBN's airtime sales as of end-June to P6.72 billion, a 6% growth compared to the same period last year.
Tin said the country's advertising market is still growing despite the crisis as companies still want to support their brands. Unlike Hong Kong and Singapore, for instance, she said local advertisements continue to be dominated by mass-market products such as shampoos, food items, and prepaid load credits.
"These make up bulk of our ads, that's why we're resilient. In Hong Kong and Singapore (for instance), they advertise services and other things you can cut down on when times are hard," she said.
ABS-CBN is set to raise ad rates by 8% at the start of this month. But according to ABS-CBN Chief Financial Officer Rolando Valdueza, this increase is still under negotiation.
"It's not yet implemented. But we're targeting it this August," he said.
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