Despite ABS-CBN’s shutdown, advertisers said they will not shift most of their TV ads to other networks. ABS-CBN was considered as an important advertising channel by the advertising industry and its halted operations negatively affected the marketing communications programs of the advertisers.
According to the Philippine Association of National Advertisers (PANA), many brands will choose to find alternative ways like advertising online, in newspapers, or on radio.
With ABS-CBN’s denied application for a franchise renewal, PANA president Marvin Tiu Lim said 45 percent of TV ad spending has been lost.
“Sa ngayon, konting dagdag sa kanilang network, pero based on our data hindi po talaga napupunta sa ibang network,” Lim said in an interview with DZMM.
Lim said most of the TV audiences of ABS-CBN are still loyal to the network and decided not to watch programs on GMA Network.
The closure of ABS-CBN left advertisers choosing from one or two networks only to put on their TV ads. This led them to make a transition to online advertising and other ways.
“Napilitan kami sa isa o dalawang network na natitira na dun lang ilagay ang advertisement namin. Napipilitan kami na i-transition to online, sa ibang paraan,” Lim said.
Lim explained, “The industry needs competition so that TV programs get better, more innovative, and ad placements better priced.”
Kapamilya host Bianca Gonzalez previously said that aside from the ABS-CBN employees, the advertising industry will also be affected without ABS-CBN’s franchise renewal.
“Hindi lang ABS-CBN employees at talents ang maaapektuhan kung hindi ma-renew ang franchise. Pati advertising industry apektado, brands at kumpanya na may ads, apektado; musicians, filmmakers, freelance creatives, prod houses, at madami pa; apektado din ang industries ninyo [sad emoji]” she wrote on Twitter.
Advertising and marketing executives also said that the ABS-CBN Corp.’s shutdown shook up the $3-billion advertising industry in the Philippines, introducing a new form of uncertainty in reaching target audiences for various companies.
Dan Villa, chairman of advertising agency CreatiVilla and former chairman of the Advertising Board of the Philippines and the Association of Accredited Advertising Agencies-Philippines, admitted the hit on the advertising and marketing industry will be regrettable, including the country’s economy overall.
“ABS-CBN, being the largest broadcast network, also has the greatest marketing reach in the country. The king of TV—ABS CBN—goes to the grave with the most reach. A key factor for a media buy to be most cost-effective now goes down to the grave with its departure” he said.
He added, “Competition in the media is a major component for a media buyer’s choice with more options to choose from. Now, the absence of ABS-CBN would inadvertently eliminate both. We have a problem with that.”
Carlo Hemedes, CEO & managing partner at Organic Intelligence Consulting, Inc., said, “As far as I know, TV spending in the Philippines is still very high. ABS-CBN is still one of the leading networks in the Philippines and compared to other countries, we are still very much a TV nation.
“In a mass market like the Philippines, by removing ABS-CBN, you are removing one major touch point that Filipinos access every day, and that has a direct impact on people whether you work in the industry or you’re just a regular citizen.”