MANILA, Philippines - Online advertisement spending is expected to exceed P1 billion in 2010 from 2009's P500 million.
According to Jose Noledo, President of the Internet and Mobile Marketing Association of the Philippines (IMMAP), the lowering costs of Internet connectivity devices and the steady increase in Web users are major factors in the anticipated 100% ad sales increase.
In the past, advertisement sales for online media had always taken the smallest pie compared to traditional media options like television and radio.
"The biggest driver of connectivity is price in an emerging market like the Philippines. Every year, the cost of connectivity and the devices to connect to the Internet have gone down," Noledo told host TJ Manotoc on ANC's "The Rundown."
Noledo shared that the numbers of people who are getting connected have been consistently going up.
He cited a report by the International Data Corporation which states that there are 25 million Internet users in the Philippines, majority of them depending on Internet cafes.
He also added that the number of broadband users are also expected to increase to 5.1 million this year.
Further, he noted the lowering of the price of 3G capable handsets and the significant growth in social networking sites like Facebook.
According to Noledo, Philippine-registered Facebook users have increased to as much as 14.5 million today from 1 million in January 2010.
"That's more than 1,000% growth, more than a tenfold increase already... Home and work Internet usage is skyrocketing and the numbers are really significant because [it means] there's a volume of interaction," he said.
To further boost the numbers forward, IMMAP is planning an information campaign on the benefits and viability of online advertising to clients and business groups.
Part of the campaign is the upcoming IMMAP Summit on August 19-20 at the SMX Convention Center where invited speakers include the most notable names in the international marketing scene.
"Instead of reinventing the wheel, it's good to learn from these experts. The goal of associations like IMMAP is to accelerate their [advertisers'] awareness so they'll be more comfortable investing more money to drive the ecosystem forward," he added. -- With ANC