TV still king, but digital is advertisers' prince for 2017

Ivy Jean Vibar, ABS-CBN News

Posted at Mar 04 2017 01:29 PM

While television remains a major advertising platform in the Philippines, investments in digital advertising may grow this year, according to an international research agency.

“From my discussions with media agencies I think we will be seeing a lot more investments in digital advertising [this year]…Television will continue to be very strong, but digital will grow,” said Jay Bautista, commercial director of Kantar Media Philippines, in a press briefing on Thursday.

He cited a fastfood company’s viral ad campaign during Valentine’s Day, which spurred more advertising activity online.

Recognizing the trend of increasing eyeballs in digital, companies and advertising agencies are also allocating more in their budget for digital executions compared to previous years, he said.

“Based on my personal discussions in the industry, some advertisers are allocating up to 25 percent [of their budgets], from 5 to 10 percent in previous years,” Bautista said.

This growth is despite Internet speeds in the Philippines remaining slower than its neighbors South Korea and Singapore, a constant complaint of Internet users across the country.

Speed may be offset by cheaper access, he said, making it convenient for Filipinos to go online, for longer, using prepaid connections. Some telco tie-ups have also allowed Filipinos free access to social media platforms or services, such as Facebook.

Video ads can be particularly beneficial, Bautista said, considering Filipinos’ love for killing time by watching media streams online. However, growth still depends on Internet access and speed.

“Some qualitative studies we've done, we have the slowest Internet speeds in the region, to say the least. With media streaming becoming important part of the habits of consumers, because of the speed problem we could see more people doing things online, if the internet speeds were faster,” he said.

However, he dismissed worries that the two platforms will cannibalize each other. Social can amplify TV content, especially if the content is really good.

A separate study released by social media management platform Hootsuite and social media marketing firm We Are Social, meanwhile showed that Filipinos who have Internet access spend more time looking at their mobiles than watching TV.

Filipino netizens spent an average of 2.5 hours a day watching TV, but spent 9 hours a day online, and of this time, about 3 hours and 36 minutes were spent browsing social media on their smartphones, the study said.