The capital of the Philippines, Manila, has over 12,800,000 residents. It is the second largest city of the Philippines and is one of the 16 cities of Metro Manila. Manila is the world’s most densely populated city with 111,002 people per square mile. It is home to the world’s oldest Chinatown known as Binondo, established in 1594. The city also has a large expat population of Americans, Spaniards, and Koreans. It is one of the most ethnically diverse cities in the world.
There is an expectation of the Philippines to be one of the world’s top 10 contributors of new adspend in the next three years. In 2018, the total share of Philippines OOH spend was at 11 to 12%. The ratio of traditional and digital OOH is at 78:22 which means that traditional OOH is still going strong. The country has also experienced 8 to 10% price inflation since 2017. Overall, the growth of Philippines OOH industry is expected to reach 12%.
Digital advertising, especially mobile, will be the key player responsible for overall ad growth in the country. There is an expectation that digital adspend will increase to 22% while mobile adspend will increase to 77%. Meanwhile, the traffic in the Philippines is still prevalent especially in Manila. Every major highway in Manila has traditional billboards present. A popular road named Epifanio Delos Santos Avenue (EDSA) is one of the best locations for OOH media with over 300,000 vehicles passing it daily.
Based on Kantar’s first quarter Philippines OOH report, adspending in the first quarter of 2018 decreased 6% compared to the previous year. In actual money terms, billboard operators lost Php100 million (US$2 million) in revenue. On the other hand, advertisers are more willing to spend on digital OOH due to its measurability, richer executions, and ability to engage consumers and drive action.
In 2018, the Philippines’ Department of Public Works and Highways (DPWH) stated that they were yet to have proper rules and regulations for electronic billboards. The DPWH would like to focus on regulating some issues encountered with OOH media along its highways. The brightness, colors, and durability of billboards are some of these issues that the Philippines must address. The Metropolitan Manila Development Authority (MMDA) was the former department in charge of OOH media along highways and roads until authority on OOH media transferred to DPWH in 2018. In recent years, the MMDA have created safety plans and measures for billboards especially during typhoon season to avoid accidents involving OOH media. On days with very heavy rain and strong winds, advertisers take down their tarpaulins to secure their billboards.
Digital OOH is becoming more and more popular in the Philippines although it only represents 5% of the current OOH inventory. There are more Philippines OOH trends expected to happen in the coming years. High ad growth on social and mobile marketing, video ad spending, search advertising, and continued battle with non-human traffic are some of these expected trends.
In conclusion, the Philippines needs to innovate and disrupt their entire model. The Philippines OOH industry should experiment with new approaches and look to other countries for reference.
TPM Outdoor is innovating its services to stay in line with the current and future trends of the OOH industry. Successful partnerships with many brands in Singapore, Indonesia, Vietnam, Japan, and other countries are the fruit of TPM Outdoor’s innovation.
Brands who are eager to catch up with the world’s OOH trends should consider working with TPM Outdoor for impactful campaign results. You may learn more about TPM Outdoor, its services, and locations on our website.