Online Ad Spending in the Philippines: 0.5%

Online Ad Spending in the Philippines: 0.5%




Yesterday, an ad executive told me that the estimated online ad spending in the Philippines is pegged at 0.5% of total annual spendings. I couldn’t believe it at first but a quick research pointed me to some more revealing numbers.

A recent story from ABS CBN News points to a Nielsen study that radio had the biggest increase in media spending with 26% for the first half of year 2008.

The breakdown of ad spending are as follows:


 

TV: 76%
Radio: 17%
Print: 7%
Total: 100%

The study didn’t even consider online ad spending which could imply that it was insignificant. So, the 0.5% mentioned to me maybe closer to the real figure (btw, there are no figures on mobile ad spend too). In contrast, Singapore has 3.8% and Hong Kong has 5% of ad spending done thru online media.

Total ad spent for 2007 was about P154.67 billion on TV, radio and print. However, this is only based on rate cards and do not consider discounts/promos and other x-deals made throughout the year.

Nonetheless, take 0.5% of that and you get Php773 Million. I’m sure Inquirer.net contributes at least 10% on that total.



Abe is the founder and Editor-in-Chief of YugaTech. You Can follow him on Twitter @abeolandres.

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13 Responses

  1. eckoe says:

    That is the Philippine market!

    TRASH TV: 76%
    Jeepney Radio: 17%
    TINAPA RAPPER: 7%
    Porn 0.5%
    Total: 100%

  2. blozoom! says:

    ^eckoe, ill echo that. TRASH TV!

    P200,000 for a 30 second ad clip on tv versus a year round ad link on a carefully and correctly selected phil site or blog. id go with the web ad. of course not all are hooked online. product to product basis din yan. tech products are ok online. my lolo got to know arthro thru TV ad spot. now he’s walking backwards.

    that .05 is really low. it has to go up for the benefit of fil-netizens.

  3. Jan Alvin says:

    Companies in the Philippines are still hesitant in investing online advertisement.

  4. BrianB says:

    Abe, it’s really a matter on how you do the advert on the website. I have an idea on how to do an effective banner ad. You know the though bubble on comics. Something like that. Roll over mouse on ad and it’ll give you some more explanations about the product. Click to go to site, of course.

  5. yuga says:

    @BrianB – I think the 0.5% ad spend for online includes AdWords, YSM, and other PPC campaigns as well as Direct Ads, Run of Site, Run of Network, and all other types of behavioral and display advertising online.

    My guess is that this would comprise of ads on the Friendster network, Multiply, ABS-CBN Interactive properties, Inquirer.net, GMA New Media properties, Yehey, Click the City, Yahoo Philippines properties and other big sites.

  6. BrianB says:

    We can start a “buy on my website” meme. This will get them excited. Make it a point to buy from an ad on a local website monthly. Maski candy lag or something.

  7. Spaghett1 says:

    Hi! I also want to comment on this but i decided to post a topic on my blog in reply to this:

    Why Online Ad Spending of 0.5% not considered

    http://www.blogcompilation.blogspot.com

  8. GM Tristan says:

    We’re still in the tri-media stage. But what few marketing execs know is that the Philippines is fast growing into an internet savvy country. Friendster has millions of Filipinos in their DB and considers us as their number 1 area, if I’m not mistaken. With that number growing everyday, I think it’s high time to really invest in online ad spending. Being a marketer myself, I have started to invest money in online ads suchs as blogs, SNS and banner advertising.

    But it doesn’t have to be as vanilla as that. There has to be a compelling reason for your target market to click on your ad. It’s not just a battle for CPMs or impressions… your message and your campaign must be well planned and in sync with your tri-media advertising. Online marketing shouldn’t compete with tri-media. Look at it as a supplementary thing and more and more marketers will see the value of this soon

  9. James says:

    Hi Yuga!

    Anong ad affiliate network ang nagpoprovide ng ads mo dito sa Yugatech na Smart Buddy? Mas mataas ba ang CPM niya compared to Google Adsense?

  10. Alfie says:

    Kaya mataas sa TV, radyo and print is that it targets the majority of Filipino’s which cant afford to have computers and internet. I think if at least half of the pinoys have access to the internet, the online ad pending will increase.

  11. Ana Loreza says:

    hi! where can i get information regarding the following:
    – total media spent in the philippines in 2008
    – top advertisers spending per media
    – How much do the industry allot for print/magazines
    – total value of media spending on tv, print and radio

    thanks.

  12. Louie says:

    Thanks for all the info.very informative.

    anyway if you are looking additional free online adds in the Philippines please visit. http://WWW.sulitipid.com.ph- Post free ads. sulit, tipid ka dito. You can post any of our categories for free like cars,real state, gadgets like mobile phones and many more.

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