Ad industry sees slow recovery; TV viewership drops


    The advertising industry is expected to have a slow and steady recovery as the economy reopens and quarantines are relaxed, according to Jay Bautista, managing director at research firm Kantar Media.

    “Given the profile of our advertising market which is highly FMCG (fast- moving consumer goods) in nature, we should expect them to increase advertising activity as the economy reopens and as quarantines are relaxed and lifted.” Bautista told Malaya Business Insight.

    With the shutdown of ABS-CBN Corp., Kantar said advertisers have adopted a wait -and-see attitude while some shifted to its rival network and other ABS-CBN platforms.

    Kantar said the closure of the network has affected impact television viewership in the country.

    Bautista said television viewership in the country dropped 24 percent when ABS-CBN went off air, affecting households mostly in the rural areas where no other channels can be received.

    Last May, ABS-CBN went off air following the cease and desist order issued by National Telecommunications Commission (NTC).

    NTC on June 30 also ordered to stop the network ‘s direct satellite services SkyDirect  with 1.5 million subscribers and digital terrestrial television broadcast on channel 43 last week which affected 4.4 million households.

    Bautista said the radio and digital platforms are expected to benefit from the excess television budgets.

    “We expect other platforms to benefit the longer ABS -CBN is off the air. Radio and digital would benefit from the excess TV budget.” he said.

    Kantar has seen consumers shift to digital during the enhanced community quarantine.

    Kantar’s COVID- 19 Barometer study showed that there was an exponential growth in Filipinos going online during the quarantine period as well as the impact of work from home activities.

    Entertainment sites — video and music increased as well as productivity apps and sites,  messaging and email

    Kantar data showed that television viewership in the country from May 6 to June 30 went down by 24 percent as compared to March 16 to May 5.

    During the period, viewership declined 21 percent in Mega Manila; 23 percent in urban areas and; 24.4 percent in rural areas.

    Television viewership went down 28.3 percent in rural central Luzon; 26 percent in rural Visayas and; 24.4 percent in rural Mindanao.

    In urban areas, Kantar data showed that television viewership in Mindanao, Visayas and Central Luzon were down by 25.4 percent, 24.4 percent and 27 percent, respectively.