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.”

In an increasingly fragmented channel landscape, digital out-of-home advertising (DOOH) is helping brands reach more customers than ever before. 

Unlike online or mobile advertising channels that are often limited by ‘one-to-one’ devices and mediums, DOOH is a one-to-many medium and has the ability to reach bigger and often captive audiences; and unlike traditional OOH advertising like static billboards and banners, DOOH formats are flexible and dynamic, allowing advertisers to change and optimise their ads in real time. 

These advantages have led to DOOH becoming the fastest growing advertising channel in 2023, outpacing all other media channels in ad spend – a trend that is likely to persist as AI technologies continue to be integrated into the ecosystem. AI is now being used to improve every aspect of DOOH advertising, from targeting and personalisation to creative development and measurement. 

DOOH is raising the bar

DOOH ads are an increasingly invaluable tool for advertisers who want to reach a large audience, leverage data to target intelligently, and deliver engaging content. 

Not only can they be placed in high-traffic areas such as highways, airports, and shopping malls, but they can also be targeted to specific demographics, such as age, gender or by audience groups (e.g.commuters or families), and interests by integrating data from mobile devices and other sources. A DOOH ad for a new clothing store, for example, could be targeted to people who have recently visited a clothing store website or by store proximity to drive footfall to a store opening. DOOH placements can also be bought and sold programmatically, which can be particularly powerful when paired with strategies like geofencing, where relevant ads are programmed to show up as a user enters a particular geographical area.

DOOH ads are also more engaging than traditional OOH ads, such as static billboards. Interactive DOOH ads, for example, allow viewers to engage by using touch screens, gesture recognition, or other technologies. The most interesting juxtaposition of traditional, digital and experiential has been the integration of cutting-edge technology like Augmented Reality, 3D ads, live streaming and gaming tech with billboards. 

But it’s not just advertisers – DOOH are winning consumers over too. Research shows that a majority of global consumers (70%) believe DOOH “feels really current” and find it to be a useful format for learning more about products or brands, with 72% describing it as “very” or “quite” informative. A majority also find DOOH ads to be more memorable and trustworthy when compared to social media or online video formats. These favourable perceptions, coupled with the creative and measurement advantages that DOOH offers has made it an essential channel while crafting an omnichannel strategy..

AI is taking DOOH to the next level 

With the inclusion of AI, DOOH advertising is becoming more experiential, dynamic and personalised than ever before. Ads can now be tailored to not only the specific demographics and interests of the people who are viewing them, but their emotions, facial expressions and even the environment they’re in by integrating with facial recognition, geolocation, and other data-driven technologies. 

AI can also be used to optimise DOOH ad campaigns in real-time, based on factors such as weather, traffic, and even the mood of the audience. The result is not only more effective but memorable advertising. We’ve seen this materialise in pDOOH campaigns done by brands such as Air Asia, in Malaysia, and AQUA in Indonesia. 

More recently, giga!, a Singapore-based mobile service provider, integrated pDOOH into its marketing strategy. The advertisements dynamically transitioned between ‘sunny’ and ‘rainy’ versions based on real-time weather conditions in Singapore. When it rained in any part of the island, customers were able to redeem free data. This innovative approach was an extension of the brand’s successful “Feeling Good” four-year anniversary campaign, allowing customers to share new mobile lines with their loved ones for just SGD$1, as detailed in the official brand statement. Notably, the pDOOH campaign was strategically rolled out across prominent locations in Singapore, including One Raffles Place, Raffles City, 313 Somerset, and Bugis Street. Additionally, dOOH posters were also strategically placed at bus stops islandwide to maximise incremental reach and uplift brand image. 

Unlocking efficiencies for advertisers

AI has the potential to greatly improve the effectiveness of DOOH advertising. Unlike traditional OOH, DOOH can help advertisers track the number of people who see an ad or take an action after through mobile beacons, QR codes and geolocation technologies for example. AI technology can further supercharge DOOH measurement and targeting through its ability to build a probabilistic model of who has seen the ad. 

By taking into account a variety of factors, such as the location of the ad, time of day, and type of device being used, this model can help predict which people are most likely to have seen the ad. This information can then be used to target and amplify future ad campaigns more effectively. The use of AI also opens doors to more engaging campaigns by integrating with innovations like eye tracking technologies, for example, that can measure where people look when they see a DOOH ad and how long they look at it for. It can also help unlock efficiencies by automating tasks like testing and optimising creatives in real time. 

As AI technologies continue to evolve and improve, brands will continue to gain from the ability to innovate, track and optimise their DOOH advertising. It’s the ambitions of the AI-focused businesses being formed today that will likely drive this growth in the years to come. And with Southeast Asia currently a hotbed for AI innovation, brands and businesses in the region have everything to gain from this shift.

This article is written by Divya Acharya, Vice President, Solutions Design & Development & Marketing Science, APAC, at GroupM Nexus

The insight is published as part of MARKETECH APAC’s thought leadership series under What’s NEXT 2023-2024What’s NEXT 2023-2024 is a multi-platform industry initiative which features marketing and industry leaders in APAC sharing their marketing insights and predictions for the upcoming year.

Singapore WPP’s media investment group, GroupM, has announced the launch of its advanced digital out-of-home (DOOH) solutions and technology suite Sightline in Singapore. 

Developed by GroupM Nexus, Sightline enables advertisers to take advantage of intelligent data-driven DOOH planning capabilities and an in-house studio that delivers ‘highly impactful’ programmatic creatives.

With Sightline, GroupM Nexus aims to help brands harness data insights such as audience movement patterns to create targeted campaigns that reach ‘the right audiences at the right time’. The end-to-end DOOH suite also allows brands to measure and optimise their campaigns in real-time and at scale to make it easier to adjust ads, creatives, and targeting as needed. 

In Singapore, Sightline has also recently supported StarHub to raise awareness of their live cricket offering amongst cricket fans through cost-efficient DOOH that avoided wastage. Relevant screens were precisely activated which resulted in an optimised campaign that yielded a higher target audience reach.

“We’re thrilled to officially launch our innovative DOOH technology to serve businesses across Singapore,” said Josh Quek, managing director of Sightline Singapore at GroupM Nexus

He added, “Our proprietary technology is designed to help brands make the most of their advertising budget by providing them with the insights they need to create cost-efficient and impactful campaigns that drive tangible results.”

This follows GroupM’s launch of its addressable TV solution, Finecast, in the Philippines.

New York, USA – To accelerate innovation for clients and further simplify GroupM’s operations, the media investment group by WPP has unveiled the merger of Essence with MediaCom and the integration of Mindshare with Neo, as well as its new 9,000-strong cross-channel performance platform built on AI technology.

EssenceMediacom is designed to power client growth globally with an agile response to a rapidly evolving media landscape. It infuses the digital and data-driven DNA of Essence with MediaCom’s scaled multichannel, audience planning, and strategic media expertise. Through this, clients will be able to leverage an expanded global organisation founded by two agencies that are strategic complements, designed exclusively to fuel client growth. Essence and MediaCom are already using this operational model for three shared global clients, namely Google, Mars, and NBCUniversal.

Meanwhile, Mindshare and Neo will be operating under the Mindshare brand but will retain and scale Neo’s operating model, focused on pureplay performance solutions, and will integrate this into Mindshare’s full-funnel offering. Neo’s 1,200 digital-first, performance experts and consultants will also be integrated with Mindshare’s 10,000 media specialists and Neo’s digital-first services will be fully embedded into Mindshare and GroupM’s offering.

GroupM Nexus will be composed of 9,000 practitioners globally, collectively responsible for the activation of more than two million campaigns managed by GroupM each year. This global community represents the industry’s leading team of experts in digital channels and platforms, search, social, programmatic, and AI, as well as cross-channel optimisation, and data-driven technologies and software. In addition, GroupM Nexus unites GroupM’s addressable content and TV, AI technology, and omnichannel solutions from Finecast, Xaxis, and GroupM Services into a single unit. The global organisation will be underpinned by a new cross-channel performance platform and international delivery hubs to set new benchmarks for performance innovation and efficiency for GroupM’s agencies and clients.

Christian Juhl, GroupM’s global CEO, said, “Through GroupM Nexus and our agency powerhouses Mindshare, Wavemaker, and EssenceMediacom, we are building a tech-enabled future, side-by-side with our clients, that is accountable to advertisers’ growth goals and to our vision for an advertising ecosystem that works for everyone.”

With these moves, Nick Lawson, MediaCom’s global CEO, will be leading the newly formed EssenceMediacom as global CEO, and Kyoko Matsushita, Essence’s global CEO, will be promoted to the new role of WPP’s CEO for Japan, as the company continues to invest in expanding, high-growth markets, as well as Nicolas Bidon, Xaxis’ global CEO, will be overseeing GroupM Nexus as global CEO.

Lawson noted that the formation of EssenceMediacom builds on the strong and proven relationship between the agencies to create the agency model their clients want for the future — one founded on brilliant strategy and brand-building capabilities, with pioneering digital expertise running throughout. 

“EssenceMediacom will not only help our clients see the bigger picture and reimagine what’s possible; it will also provide opportunities for our people to upskill and train in new areas, further enriching and enhancing their careers,” said Lawson.

Meanwhile, Matsushita said, “Bringing together Essence and MediaCom – each with their own celebrated histories of excellence – will create a truly unique combination of agile innovation and global scale in a single agency.”

Bidon also commented, “GroupM Nexus unites leading media talent, digital services excellence, cutting-edge AI technology and unique scaled partnerships into a new cross-channel performance organisation with one purpose: power growth for our people, our agencies and the amazing brands they represent. We cannot wait to innovate together and unlock new opportunities for everyone.”

Adam Gerhart, Mindshare’s global CEO, said that the merger delivers seamless access to Neo’s digital-first capabilities and a relentless focus on performance models to accelerate good growth. 

“For our teams it means more opportunity and the ability to create greater impact across the world. I’m delighted to partner with Neo CEO Nasreen Madhany as we complete the integration of the two businesses and move into a new future together,” he added.