From billboard and television, the Philippine market is slowly shifting to online in brand building, capitalizing on the growth of mobile penetration and the use of electronic commerce.
According to leading global market research and insights company TNS, brands in the Philippines have leveraged on the social media-savviness of the Philippine market in pushing their brands which are now using Facebook twice as much in the previous year to push their products.
Anne Rayner, global head of Communications Research, in a press briefing said electronic commerce is picking up and growing three times as fast as the global average.
Rayner said 81 percent of brands on Facebook in the Philippines use this medium to market their products, which is almost double than the 47 percent global penetration.
In the Philippines, Rayner said, 11 percent of purchases are now made via mobile.
The study also showed that almost two thirds of product research (62 percent) is happening online in the Philippines – and much of this is happening in-store while people shop.
“This highlights just how vital it is for retailers and businesses to understand which touchpoints are most important to driving sales, as it may not be those in the physical store,” Rayner said.
Rayner clarified though that the Philippines remains a TV-heavy market but that studies would indicate a shift to mobile as half of the population are connected.
“This has allowed them to increasingly watch videos on their smart phones during peak TV times in the early evenings. In one year, the Philippines emerged from the most TV-heavy market to just in the top 10. Brands should embrace on how to reach consumers,” Rayner said.
“In the Philippines, it’s all about mobile and Facebook is very critical. Social media now looks like TV,” she added.
When it comes to customer relations management, Rayner said, Filipinos prefer social media rather than call centers such that it would be better to set up service centers to handle after-sales.
Rayner also said billboards in the Philippines are overused and brands should use them for deliberate, specific strategies on top of other media, depending on the products.
A study done by TNS a few years ago showed that the Philippines was a country of billboards, but Rayner said this has changed.
“Studies show that from telcos to infant nutrition, billboards are not a good value for money, just because brands become visible (through billboards) does not mean they are impactful. Billboards just become wallpapers,” Rayner added.
Car dealerships, for example, use TV and billboards to drive sales.
E-commerce in the Philippines in 2015 grew nine percent, three times faster than the global average, with 20 percent of Filipinos buying through ecommerce, half of which are via mobile.
Rayner said the Philippines has overcome the accessibility challenge in e-commerce but trust issue remains a hurdle.
She said most e-commerce purchases are for travel.
According to Rayner, growth of e-commerce in the Philippines is hampered by the fact that most fast-moving consumer goods are purchased on last-minute, where Filipinos go to their old reliable retail outlets for their purchases.
The TNS study revealed thaton average, Filipinos use five different touchpoints before making a purchase. Touchpoints are the different ways that consumers interact with a business.
From traditional methods like customer service call centers to newer interactions like social media, the array of touchpoints now available for businesses has completely changed the marketing landscape.