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| [Internet Ad] Internet Advertising in Its Infancy in Philippines
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November 19, 1998 (MANILA) -- Internet advertising in the Philippines
remains in its infancy, despite the proliferation of Internet service
providers in the country.
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Content providers or Web page developers, however, are confident Internet
advertising will increase in the coming years as more and more individuals
and companies realize the wide and effective reach of the Internet.
Wai Yee Lam, chief operating officer of Manila-based Asia Online Inc.,
said the Philippines is not the only country experiencing a low rate
of Internet advertising; most content providers in Asia are experiencing
the same problem.
"In Asia, companies are just beginning to recognize the Web as a valuable
marketing channel," Yam said, noting that Internet advertising in the
United States is already well established.
Lam said advertisers will fully realize the Web's potential, but not
in the near-term.
"Online media have not received much attention and it will take another
year or two for the number of advertisers to be meaningful and realistic,"
Lam said.
Rowena Macaraig, president of Digital Ads Corp., said she believes content
providers need to work harder to make advertisers aware of the Web's
reach.
"The medium is still relatively unfamiliar for non-technical people such
as human resource managers, marketing managers and businessmen," she
said.
"Usually, it is the companies with their own Internet sites who are open
to the idea of Web advertising," she added.
Macaraig said that for now, local companies are willing to spend only
3,000 pesos (US$77) to 5,000 pesos (US$128) for the typical 2-in. by
2-in. add on a Web site, depending on the location of the ad.
Vicente Groyon, creative director of BusinessWorld Online Inc., said
Web advertising in the Philippines hasn't been welcomed as it has been
in the United States.
"Advertising on the Internet has gotten a lot of bad press. Some users
are irritated by ads, which eat up on their download time," he said.
Groyon said it will take some time before Internet advertising is widely
accepted in the Philippines.
In the Philippines, Macaraig said among the industries that have accepted
the idea of Internet advertising as an essential tool are hotels, shopping
centers, computer companies, human resources companies and travel agencies.
Alistair Israel, president of WS Fiesta Online Inc., said still largely
untapped markets are manufacturing companies and consumer products-related
companies.
Robbi Mercado, a consultant for direct marketing and electronic marketing
at Publicis Philippines Inc., said Internet advertising for consumer
goods may take a few years to become popular in the Philippines since
the penetration of the Internet among mass consumers is low compared
to that of television.
"Advertisers still feel they will get more value for their money if they
advertise on television," he said.
Industry observers said Internet advertising hasn't become popular among
advertisers because ad agencies generally do not offer it as an alternative
when they present possible packages to their clients.
Tricia Camarillo, business development manager at McCann-Erickson Philippines,
said ad agencies are only beginning to explore Internet advertising.
"We are aware of Web advertising and its important role in the future.
We are currently in the stage of exploring possibilities," she said.
Camarillo admits several clients have shown interest in the Internet
as a venue for advertisements and have instructed her company to prepare
an analysis of how Internet advertising would be able to supplement
their traditional advertising routes.
Israel believes that improving the available infrastructure provided
by Internet service providers would greatly improve the acceptance of
Internet advertising.
Israel predicts that sites that target a niche market will increasingly
become more attractive to advertisers in the Philippines.
"Advertisers will be able to target their specific markets through these
special Web sites at less cost than advertising on larger sites maintained
by expensive content providers," he said.
Internet Ad stories:
- Clients Often Ahead of the Agencies in Australia/A>
- Taiwan's Internet Ad Market to Triple by 2000
- Taiwan Internet Ad Market Value Estimated at US$3M in 1998
(Margarita Roa, Asia BizTech Correspondent)
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