Total ad spending shoots up in first half of 2011

PHILIPPINES, JULY 28, 2011 – All signs point to a healthy start for the local media industry as media research firm Nielsen confirmed that total advertising spend for the first half of 2011 increased by 15%. The growth was mostly attributed to TV, which continued to surge by posting double-digit growth on spend, spots and minutes. Print also posted a small, yet remarkable, 7% improvement in the second quarter.

 

In TV, ABS CBN maintained its nationwide lead by winning 35% of viewers in the Philippines, while ranking second with 27% audience share in Metro Manila. GMA, on the other hand, dominated the metropolis with 38%, while it placed second with 32% audience share nationwide. Quickly closing in is TV5 which won 15% and 18% of national and Metro Manila audiences, helping it secure third place in both categories. 

 

Nielsen findings showed that viewing levels for TV grew slightly on specific day parts such as morning and afternoon. Viewers from 6am to midnight were pegged at around 6.4 M nationwide, and 4.5 M in Metro Manila from April to June 2011. These represent an average of 19.9%, and 18.9% of the entire population respectively. 

 

Growth was mostly experienced in primetime where GMA and ABS-CBN dominated with its lineup of soaps. Figures revealed that 33.2% (10.6M) of viewers across the country  are tuned in from 6pm to 10pm (primetime), while a staggering 31.2% (7.5 M) of viewer share come from Metro Manila alone. Recently concluded Mara Clara (ABS CBN) also topped nationwide ratings for primetime by attracting an average of 7.6 M viewers, while Amaya (GMA) topped Metro Manila ratings with 3.4 M.

 

Meanwhile, TV5’s WilTime Big Time is yet to achieve its predecessor Willing Willie‘s levels in 2011. The new show managed to bag 2.6 M viewers nationwide during the second quarter, a far cry from the former’s 3.2 M in the first quarter. 

 

While some attributed the ratings fall to the Jan-Jan controversy, research showed that the program’s audience share has been on the decline even before the event. “Maybe it lost its novelty as the only variety show in that time slot. Or, it can be attributed to the advent of the remote. Keeping a three-hour program’s ratings on a daily basis is not an easy feat,” explains Jay Bautista, managing director of Nielsen. 

 

Weekends turned out to be a toss between the two giants as ABS-CBN led nationwide with Maalala-ala Mo Kaya (6.7 M), Pilipinas Got Talent (6 M), and Gandang Gabi Vice (5 M). GMA rebounded in Metro Manila where 2.7 M viewers tuned in to Kapuso Mo, Jessica Soho. 

 

GMA’s Temptation of Wife also brings Koreanovelas back in the limelight as it became the second most-watched daytime program across Metro Manila and the Philippines with 2.1M and 3.5 M viewers respectively. TV5’s “barangay hall on air” Face to Face also increased its audience share by more than double, to 2.1 M nationwide, and 1.4 M across the Metro. 

 

Daytime, on the other hand, remains to be an Eat Bulaga fête, as it grabbed 3.9 M of the average 7.1 M viewers nationwide.  

 

Nielsen also presented findings for its Advertising Information Service (AIS), the industry currency for advertising expenditure in the country. Figures were drawn out after measuring the performance of 25 TV stations, 111 radio stations in eight areas, 24 newspapers, and 50 magazines. 

 

Despite the lack of political ads in the current media landscape, positive figures were still tallied in TV and print. Radio was not as fortunate, posting an average 10% decline in ad minutes as compared to last year. The controversial billboard industry also managed to add 2% to total ad spending in the first half of 2011, with real estate and clothing retail companies choosing it over traditional media. Among top advertisers, Smart Communications, Nestlé, and L’Oreal nearly doubled their spending.

 

Ironically, the increase in spending came with a decline in total ad volume, with spots shrinking by 12% across all media. Nielsen explains this by attributing growth in total ad spend to an increase in advertising charges based on network and publication rate cards. 

 

Personal care, food and beverage dominated the top 10 product sections. Companies investing in personal care spent as much as PhP 30.8 B, while those in food and beverage spent PhP 19.3 B and PhP 15.4 B respectively. Unilever Philippines Inc. also emerged as the biggest advertiser, having spent PhP 18.8 B, while Procter&Gamble and Nestlé Philippines Inc came in at second and third with PhP 14.3 B and PhP 10.2 B each. Noticeably absent from the top advertisers’ list are government offices and agencies. “We measured the lowest government ad spending in nine years. Even the Office of the President, which used to be a top advertiser, doesn’t spend as much anymore. I think it’s a policy change we’re seeing here,” shares Bautista.