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By Darwin G. Amojelar, Reporter
CORPORATE ad spending will slow
down this year and next as advertisers defer their media spending
owing to soaring inflation and a weak domestic economy, Nielsen
Media Research said Wednesday.
Inflation accelerated to a
14-year high of 11.4 percent last month, while the Philippine
economy, as measured by the country’s gross domestic product (GDP)
slowed to 5.2 percent in the first quarter of the year.
“If the trend doesn’t change,
we feel that the advertising expenditure may soften. We [are]
already seeing flat growth,” Jay Bautista, Nielsen executive
director said.
The Nielsen executive compared
the current weakness to the 1998 Asian financial crisis, during
which print and radio ad revenues suffered, with media spend
dropping 2 percent and ad spots falling 13 percent.a
In the first half this year,
media ad spend however grew 15 percent to P79.76 billion from P69.32
billion in the same period last year. “The double digit growth is
mainly driven by radio. Ad spend in TV is actually almost flat
because if you look at the advertising slot it is saturated
particularly in primetime,” Bautista said.
Looking at the advertising spots
and minutes would show a slowdown from last year. “But it’s
still in the positive territory particularly for radio,” he said.
“So far, the telecom [ad spend
is] already slowing down and the personal care [ad spend] is
actually flat. In contrast, pharma [ad spend] is growing,” he
added.
For TV, top advertisers were
Unilever Philippines with P9.04 billion; Procter & Gamble, P4.7
billion; Nestlé, P4.6 billion; United Laboratories, P4.5 billion;
Colgate-Palmolive Phils. Inc., P4.1 billion; Smart Communications
Inc., P1.3 billion; Johnson & Johnson Phils. Inc., P1.22
billion; Herbs and Nature Corp., P1.21 billion; Coca Cola Bottlers
Phils. Inc., P1.15 billion; and Globe Telecom Inc., P1.01 billion.
By type of product, Nielsen said
personal care cornered the bulk with P17.45 billion, followed by
food, P11.02 billion; pharmaceuticals, P10.21 billion; beverage,
P9.13 billion; telecom, P6.40 billion; and others, P25.52 billion.
The ad expenditure data are based
on published rate cards, and so may not reflect actual spending by
companies, Nielsen said.
The share of media spend was
higher in TV at 76 percent followed by radio, 17 percent and print,
7 percent.
Over the next 12 months,
teenagers intend to buy cell phones at 36 percent; iPods, 20
percent; laptops, 20 percent; desktop personal computers, 19
percent; and digital cameras, 13 percent, Nielsen said.
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