ADVERTISING SPEND IN PHILIPPINES: TOPLINE ANALYSIS 2001
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Total media advertising expenditure increased only by 14%
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Print advertising had a negligible 2% increase from previous year.
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On Television
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Quite a number of publication titles stopped their circulation before the end of
the first semester.
Print Lineage data shows that smaller sized ads had become popular while
Full-Page sized ads were not published as frequently as the previous years.
Total spots of major network ABS-CBN-2 was reduced by 12%. This
contraction was a major factor why total adspend on terrestrial TV grew only
by 13%. On the other hand, its major competitor GMA 7 grew its expenditure
by 11%.
Studio 23, a premium UHF channel of ABS-CBN suffered a major cut-back on
spots and expenditure by 50% and 25%, respectively.
It was only IBC 13 that had a significant gain on expenditure at 78%, brought
by a 30% increase on commercial spots.
Cable advertising is increasing. Given the sets of cable channels covered in
current adex measurement, total ad expenditure of cable is already 5% of
combined FTA and Cable channel adspend.
Increase on Radio expenditure was within its normal level.
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Media war between two major telecom companies Globe Telecom and Smart
Communications ended the year with a heightened 34% increase on total
expenditure for the entire Telecommunication category.
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Procter & Gamble’s total expenditure grew by a remarkable 61% due to its push for
Pantene and Ariel brands and its introduction of Old Spice Deodorant to the market.
37% of its media expenditure went to its shampoo category.
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Some leading advertisers narrowed their advertising budgets and this had significant
impact on total expenditure for certain categories.
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A notable example is Fortune Tobacco, a leading cigarette company that cut its
advertising budget by 20%, resulting in a decreased expenditure of total Cigarette
category by 20%.
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While Unilever maintains the lead in media advertising expenditure, it is among
the advertisers that had significant cuts on advertising budget. Unilever
decreased its total ad expenditure by 11%.
Total number of new TV campaigns was 8% lower than previous year and this has
resulted in a prolonged run of older campaigns of major advertisers.
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TVC lengths longer than the standard 30 seconds were no longer popular. Less
of the 45 and 60 second ads were aired until last quarter of 2001.
On Broadsheets, we saw less Full-Page sized ads. Print lineage data show smaller
sized ads have become popular
Outlook for the first 6 months of 2002
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Release of Rate cards may be delayed due to a foreseen difficult negotiation
between networks and advertisers.
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Popularity of 15 seconds TVC commercial spots may continue due to tightening on
research budgets of advertisers. This will have significant effect on TV advertising
expenditure.
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Heightened adspend of Telecommunications may persist considering the product
innovations that both Globe Telecom and Smart Communications need to convey to
consumers.
Contributing unique local factors to 2001 Adspend
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Political Ads account for a 5% increase in adspend for the first half of 2001.
Unique local factors or events that may affect the Philippine markets’ adspend in
2002
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Prevailing state of economic and political situations may either progress or regress
media advertising.
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If we expand our coverage on TV to include another cable provider (Destiny).
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If Star TV resumed its broadcast on Sky/Home Cable.
Note: All mentions of expenditure in this analysis are based on published rate cards.