Despite streaming services becoming increasingly popular across Southeast Asia, including the Philippines, it is worth noting that television–both linear and connected–is still prevalent across the region’s households. However, we have seen in recent weeks how many media outlets are struggling to keep up with their operations due to a lack of advertising support. From ABS-CBN shifting its focus to digital media to the shutdown of CNN Philippines, there is a clear trend of more media entities switching to digital media options.
The question is: is there still hope for TV advertising in the Philippines? If so, what trends should we look forward to, and how should brands and media entities work together to stay afloat amidst an uncertain media landscape?
For MARKETECH APAC’s latest What’s NEXT interview, we spoke with Kathryn Domingo, media solutions director at GroupM Nexus, to learn more about the future of TV advertising in this diverse Southeast Asian nation.
Continued growth amidst economic instability
Domingo notes that TV advertising expenditure in the Philippines will continue to grow steadily for the next five years, with the latest forecast from GroupM noting that TV spending is anticipated to achieve a Compound Annual Growth Rate (CAGR) of 6.4% over the upcoming five years.
“This suggests a sustained interest in reaching wide-ranging audiences via television, albeit with a potentially moderate growth pace,” she said.
She also noted that connected TV (CTV) is also poised for even more substantial expansion, with GroupM forecasting a CAGR of 10.6% for CTV ad expenditure in the Philippines over the next five years.
“This mirrors the escalating popularity of streaming platforms and the increasing willingness of viewers to engage with targeted advertisements on these platforms,” she added.
However, she also recognises the continued challenges for TV advertising, adding, “Economic factors such as inflation and cautious consumer spending could exert pressure on advertising budgets. Additionally, digital platforms like streaming services and online advertising continue to present ongoing competition.”
Why TV advertising continues to thrive in the Philippines
For Domingo, TV advertising continues to thrive in the Philippines due to the medium still a media staple in the country, adding that Filipinos have long relied on TV for news, entertainment, and information, fostering a sense of familiarity and credibility.
“This trust translates to effective brand building, as powerful storytelling and captivating visuals on TV resonate deeply with audiences, raising mass awareness and forging stronger connections,” she said.
Outside of these cultural norms, she also said that TV still offers unmatched reach and diverse audience targeting, which makes it an invaluable tool for brands seeking to connect with varied demographics across the country.
“Unlike many digital platforms, TV broadcasts cover extensive geographical areas, facilitating broad targeting that is challenging to achieve solely through digital channels. Moreover, TV advertising is continuously evolving to adapt to modern preferences. Advancements like addressable TV and programmatic buying enable precise audience targeting, delivering ads to specific demographics or viewing habits. This ensures maximum return on investment for advertisers looking for efficient campaigns,” she explained.
What’s next for Philippine TV advertising
Domingo is confident that TV advertising in the country is poised for a significant leap forward, driven by the rise of advanced TV solutions.
“Advanced TV offers a single point of access to the entire addressable TV ecosystem. Enabling advertisers to deliver messaging to custom audiences across TV formats, combining the data-driven precision of digital with the scale and brand safety of television,” she stated.
She also explained that this solution is location-first by design, independent of device identifiers or third-party cookies, which is becoming more critical for advertisers as we move into an era where the reliance on cookies will come to an end.
“We model audiences based on the world’s largest source of data for TV planning, and activate on geo-location. This new avenue of TV advertising allows advertisers to move beyond large-scale traditional TV ad buys to custom targeting Filipino audiences, focusing more on brand relevance and impact,” she added.
Advice for advertisers to maximise TV advertising reach
With TV advertising in the Philippines undergoing a major transformation, Domingo notes that brands need to reimagine their advertising strategies. She added that while linear TV boasts undeniable reach, audience behaviour has shifted, demanding greater focus and efficiency.
She offered these three key pointers for consideration:
- Supplement an existing linear TV strategy with addressable TV: Leverage the massive reach of linear TV while strategically integrating addressable TV’s power. This winning combination enables brands to tap into broader audiences through linear broadcasts while using addressable TV’s refined targeting to reach specific demographics or interests, particularly younger audiences who might be harder to find. This approach maximises reach and ensures the brand’s message resonates with the right viewers.
- Unlocking the Precision of Location-Based Targeting: Ditch the shotgun approach and embrace pinpoint accuracy. Location-based targeting minimises ad waste and optimises brand’s media investment. This strategy shines for brands with physical locations, delivering the brands’ message directly to potential customers within their geographical vicinity, ensuring efficient and impactful ad spend.
- Crafting Bespoke Targeting for a Seamless Omnichannel Experience: Move beyond the limitations of mass reach in TV’s vast environment. Leverage audience insights to identify the ideal viewers, not just a crowd. Deliver tailored messages across channels for a seamless omnichannel experience. Understand their interests, behaviours, and affinities to make brands’ message resonate across platforms, building brand identity and deeper engagement.
“By optimising TV advertising strategy, it will ensure the ad reaches the right people at the right time and in the right place. By embracing these strategies, brands can navigate the evolving Philippine TV landscape and maximize their reach and impact,” she added.
She also shared advice on brands on how to create effective TV adverts, noting that it must resonate across various demographic variations, cultural norms, media preferences, and the distinct local media landscapes of each region.
“This comprehensive analysis serves as the bedrock for tailoring messages to specific audiences, seamlessly integrating culturally relevant language, references, settings, and storylines. By doing so, the content not only connects more deeply with local communities but also demonstrates a respect for cultural sensitivities, steering clear of stereotypes, offensive humour, or any material conflicting with local beliefs or values,” she explained.
Domingo concluded, “To further refine the campaign strategy, tapping into data from regional broadcasters, cable operators, and local social media platforms provides invaluable insights into regional viewing trends, ensuring the content’s alignment with the evolving preferences of the target audience.”
