Friday, August 19, 2022
manilastandard.net
ADVERTISEMENT
  • About
  • News
    • Top Stories
    • National
    • World News
    • Pinoy Abroad
    • Features
  • Opinion
    • Editorial
    • Columns
    • Soundbytes
  • LGUs
    • NCR
    • Luzon
    • Visayas
    • Mindanao
  • Business
    • Corporate
    • Economy & Trade
    • Stocks
    • Money
    • Agri & Mining
    • Power & Tech
    • IT & Telecom
  • Sports
    • Basketball
    • Volleyball
    • Fightsports
    • Active
    • Sports Plus
    • One Championship
    • Columns
  • Entertainment
    • TV & Movies
    • Celebrity Profiles
    • Music & Concerts
    • Digital Media
    • Columns
  • Lifestyle
    • Food
    • Culture & Media
    • Fashion
    • Health and Home
    • Leisure
    • Shopping
    • Columns
  • Others
    • Pets
    • Pop.Life
      • Newsmakers
      • Hangouts
      • A-Pop
      • Post Its
      • Performances
      • Malls & Bazaars
      • Hobbies & Collections
    • Technology
      • Gadgets
      • Computers
      • Business
      • Tech Plus
    • MS ON THE ROAD
      • Sedan
      • SUV
      • Truck
      • Bike
      • Accessories
      • Motoring Plus
      • Commuter’s Corner
    • Home & Design
      • Residential
      • Commercial
      • Construction
      • Interior
    • Spotlight
    • Gallery
      • Photos
      • Videos
    • Events
      • Seminars
      • Exhibits
      • Community
    • Biyahero
      • Travel Features
      • Travel Reels
      • Travel Logs
  • Advertise with Us
No Result
View All Result
  • About
  • News
    • Top Stories
    • National
    • World News
    • Pinoy Abroad
    • Features
  • Opinion
    • Editorial
    • Columns
    • Soundbytes
  • LGUs
    • NCR
    • Luzon
    • Visayas
    • Mindanao
  • Business
    • Corporate
    • Economy & Trade
    • Stocks
    • Money
    • Agri & Mining
    • Power & Tech
    • IT & Telecom
  • Sports
    • Basketball
    • Volleyball
    • Fightsports
    • Active
    • Sports Plus
    • One Championship
    • Columns
  • Entertainment
    • TV & Movies
    • Celebrity Profiles
    • Music & Concerts
    • Digital Media
    • Columns
  • Lifestyle
    • Food
    • Culture & Media
    • Fashion
    • Health and Home
    • Leisure
    • Shopping
    • Columns
  • Others
    • Pets
    • Pop.Life
      • Newsmakers
      • Hangouts
      • A-Pop
      • Post Its
      • Performances
      • Malls & Bazaars
      • Hobbies & Collections
    • Technology
      • Gadgets
      • Computers
      • Business
      • Tech Plus
    • MS ON THE ROAD
      • Sedan
      • SUV
      • Truck
      • Bike
      • Accessories
      • Motoring Plus
      • Commuter’s Corner
    • Home & Design
      • Residential
      • Commercial
      • Construction
      • Interior
    • Spotlight
    • Gallery
      • Photos
      • Videos
    • Events
      • Seminars
      • Exhibits
      • Community
    • Biyahero
      • Travel Features
      • Travel Reels
      • Travel Logs
  • Advertise with Us
No Result
View All Result
manilastandard.net
No Result
View All Result
Home Business Corporate

ABS-CBN’s closure seen to affect $3-b advertising industry

Manila Standard BusinessbyManila Standard Business
February 29, 2020, 10:40 pm
in Corporate
Reading Time: 4 mins read
A A
76
SHARES
Share on FacebookShare on TwitterShare on Email

A veteran advertising executive warned that the non-renewal of ABS-CBN Corp.’s franchise can affect the country’s $3-billion advertising industry and disrupt the marketing strategies of many companies that depend on television for their advertising exposure.

Dan Villa, chairman of advertising agency CreatiVilla, said that aside from the livelihood of ABS-CBN’s 11,000 workers, the closure of the network would have implications on the general economy, particularly on the advertising and marketing industry.  He said 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. This means too that the selection of an array of proven efficacy and reach becomes too narrow and ineffective,” said Villa, a former chairman of the Advertising Board of the Philippines and the Association of Accredited Advertising Agencies-Philippines.

Advertising Board of the Philippines former chairman Dan Villa
Advertising Board of the Philippines former chairman Dan Villa

“Advertising is a major player of the marketing mix…and TV still dominates the media sphere. The absence of one dominant TV network tilts the balance,” he said.

Villa said competition in the media is a major component for a media buyer’s choice with more options to choose from. “Now, it [ABS-CBN’s absence] would inadvertently eliminate both. We have a problem with that,” he said.

ADVERTISEMENT

He said this would create a gap in media buying.  “We have to be more creative in media buying with this kind of scenario. While digital media is fast occupying the media landscape, it doesn’t fulfill a good media mix. TV still dominates,” said Villa.

Net income reports submitted to the Philippine Stock Exchange showed that ABS-CBN, which employs more than 11,000 individuals, declared P1.9-billion net income out of P40.1 billion revenues in 2018, with P20.4 billion of that coming from advertising.

The next biggest player, GMA Network, earned P2.3 billion out of P15.2-billion revenues during the same year, with P13.9 billion representing airtime revenues.  A 30-second TV commercial on the two networks costs anywhere from P500,000 to P800,000.

ABS-CBN reported improved earnings in 2019, which was an election year, although the full-year figures are not yet available.  In the first three quarters of 2019, ABS-CBN earned P2.36 billion out of P32-billion revenues, of which P17 billion represented advertising revenues.

“Imagine losing the leading TV network off the air. Gone.  Gone too is the media platform with the greatest reach in the country. And what do you mean by this? The selection of programs that are proven with certainty to achieve reach, with its demise, shall be co-terminus with this single stroke of fate,” said Villa.

ABS-CBN, whose 25-year franchise from will expire on May 4, has yet to renew its franchise from the House of Representatives.  The chamber has not yet started hearings on a dozen bills seeking a new legislative franchise for the network.  

Solicitor General Jose Calida asked the Supreme Court to revoke ABS-CBN’s franchise for the latter’s alleged “highly abusive practices.” President Rodrigo Duterte, however, said that he had accepted an apology from ABS-CBN president Carlo Katigbak.

Business groups said the closure of ABS-CBN would hurt freedom of expression in the country and displace thousands of workers who depend on the network for their livelihood.

Results of the national TV ratings survey conducted by Kantar Media on Feb. 17 to 20 showed that three of the most watched TV programs in the country—FPJ’s Ang Probinsyano, TV Patrol and Make It With You—were aired over ABS-CBN Channel 2.

Philippine Competition Commissioner Johannes Benjamin said the closure of ABS-CBN might also be a concern in the media industry, as ABS-CBN has a market share of 31 percent to 44 percent. Bernabe said GMA Network could eventually take ABS-CBN’s market share.

Villa said while this may be true, this would mean less options for the advertising needs of various companies.   

“There shall be a shift of media buys to GMA, 15 percent of which shall be coming from ABS-CBN viewers.  Digital media shall have a major additional slice of it too as the shift to digital is imminent,” he said.

Villa, however, said this would drastically change the industry.  “When the king dies, another king emerges, but that kingdom dramatically changes the TV landscape. ABS-CBN controls up to 44 percent of viewership vis-à-vis GMA’s 34 percent to 46 percent, depending on the source of the research survey,” he said.

ABS-CBN uses Kantar Media and while GMA taps AGB Nielsen.

“Inclinations indicate that the demise of ABS-CBN would shake the ground and swells in a ‘shifteroo’, with the ABS-CBN viewers shifting with tectonic dimensions towards GMA,” Villa said.

He said such shift would not be healthy to the market.  “Now, that is not funny to media buyers, where options are real concerns. Choices in a very competitive world dictate serious battles and fierce wars to occupy the viewers’ space and gain from the luxurious business,” he said.

“We are talking of a market worth at least $3 billion. But the numbers should simply get the highest share and bite for the biggest chunk of the viewers, then translate that further into leadership positioning. It is still a numbers game in the critical eyes of the buyers, with a viewer’s profiling to rationalize a buy,” he said.

Tags: ABS-CBN Corp.advertising industryfranchise
ADVERTISEMENT
Manila Standard Business

Manila Standard Business

Related Posts

Bloomberry eyes new Puerto Azul resort and casino

byJenniffer B. Austria
August 18, 2022, 7:20 pm
0
153
Bloombery defers completion date of QC casino-hotel

Bloomberry Resorts Corp. said Thursday it will start developing a newly-acquired property in the Puerto Azul-Paniman area in Ternate, Cavite...

Read more

Pfizer launches new campaign

byManila Standard
August 18, 2022, 6:50 pm
0
157
Pfizer says COVID-19 vaccine 90% effective in Phase 3 trial

Pfizer Philippines Inc. launched a new corporate communications program highlighting the company’s work in developing breakthroughs that change patients’ lives....

Read more

SSI Group’s profit soared by 383% to P491m in 6 months

byJenniffer B. Austria
August 17, 2022, 8:15 pm
0
183
SSG Group, Metro Retail incur losses

SSI Group Inc., the country’s largest specialty retailer controlled by the Tantoco family, said Wednesday net income soared 383 percent...

Read more

Figaro optimistic on 2022 operations

byManila Standard
August 17, 2022, 7:50 pm
0
163
Figaro Coffee pegs IPO price at P0.75/share

Figaro Coffee Systems Inc., the sole subsidiary and operating company owned by listed Figaro Coffee Group, is optimistic about its...

Read more

Vista Land’s income climbed 11% in first half

byJenniffer B. Austria
August 16, 2022, 7:10 pm
0
176
Vista Land’s profit hit P6b in 9 months

Vista Land & Lifescapes Inc., the property unit of real estate tycoon Manuel Villar Jr., said Tuesday net income grew...

Read more

GT Capital earned P8.3b in six months

byJenniffer B. Austria
August 16, 2022, 7:05 pm
0
171

Conglomerate GT Capital Holdings Inc. said Tuesday net income increased 24 percent in the first six months to P8.3 billion...

Read more

Stories you may like

  • People …are talking about Liza Soberano

    Supermodel son is Philippine bet in Manhunt International

    12361 shares
    Share 4944 Tweet 3090
  • How love kept Zoey Taberna alive

    10480 shares
    Share 4192 Tweet 2620
  • SMART/MVP-PH Team joins ‘22 Asian Taekwondo Championship

    1127 shares
    Share 451 Tweet 282
  • CHERY Tiggo Crossovers release players, salute their contributions 

    1108 shares
    Share 443 Tweet 277
  • Solidum heads DOST, ex-solon envoy to Japan

    861 shares
    Share 344 Tweet 215

Print Edition

View More

Recent Posts

  • Sneakers for Makati : AB4.0
  • Depots yield hoarded sugar
  • Scarcity of white onions pushes price to P400/k
  • DSWD to extend cash aid to poor students
  • Carlos at WPS as China envoy calls on PBBM
  • Metro mayors stand pat on NCAP policy
  • Allies
  • COVID mutations now harder to detect

Advertisement

Latest News

Metro mayors stand pat on NCAP policy

byJoel E. Zurbanoand1 others
August 19, 2022, 12:30 am
0
138
Metro mayors stand pat on NCAP policy

Metro Manila mayors on Wednesday insisted on carrying out the no-contact apprehension program (NCAP) despite mounting opposition from motorists and...

Read more

Allies

byManila Standard
August 19, 2022, 12:27 am
0
131
Metro mayors stand pat on NCAP policy

President Ferdinand Marcos Jr. meets with visiting US lawmakers led by Sen. Edward Markey. 'We look forward to continuing our...

Read more

COVID mutations now harder to detect

byWillie Casas
August 19, 2022, 12:25 am
0
135
Omicron now dominant virus variant in US

The World Health Organization has warned that a global decline in genome sequencing is making it “so much harder to...

Read more

Animal exposure risk monkeypox infection—WHO

byAFP
August 19, 2022, 12:20 am
0
134

The World Health Organization called Wednesday for people infected with monkeypox to avoid exposing animals to the virus following a...

Read more

Inflation pressures ebbing

byManila Standard
August 19, 2022, 12:15 am
0
132
Inflation pressures ebbing

Inflation pressures appear to be softening up, which is good news for everybody. Global oil prices, the main culprit behind...

Read more

Advertisement

ADVERTISEMENT
Facebook Twitter Instagram Youtube

ABOUT US

Manila Standard

Manila Standard website (manilastandard.net), launched in August 2002, extends the newspaper’s reach beyond its traditional readers and makes its brand of Philippine news and opinion available to a much wider and geographically diverse readership here and overseas.

Digital Edition

In tone and content, the online edition mirrors the editorial thrust of the newspaper. While hewing to the traditional precepts of fairness and objectivity, MS believes the news of the day need not be staid, overly long or dry. Stories are succinct, readable and written in a lively style that has become a hallmark of the newspaper.

Download – Today’s Paper

Search

No Result
View All Result

6th Floor Universal Re Bldg., 106 Paseo De Roxas cor. Perea Street, Legaspi Village, 1226 Makati City Philippines

Trunklines: 832-5554, 832-5556, 832-5558

© 2021 Manila Standard - Designed and Developed by Neitiviti Studios.

No Result
View All Result
  • About
  • News
    • Top Stories
    • National
    • World News
    • Pinoy Abroad
    • Features
  • Opinion
    • Editorial
    • Columns
    • Soundbytes
  • LGUs
    • NCR
    • Luzon
    • Visayas
    • Mindanao
  • Business
    • Corporate
    • Economy & Trade
    • Stocks
    • Money
    • Agri & Mining
    • Power & Tech
    • IT & Telecom
  • Sports
    • Basketball
    • Volleyball
    • Fightsports
    • Active
    • Sports Plus
    • One Championship
    • Columns
  • Entertainment
    • TV & Movies
    • Celebrity Profiles
    • Music & Concerts
    • Digital Media
    • Columns
  • Lifestyle
    • Food
    • Culture & Media
    • Fashion
    • Health and Home
    • Leisure
    • Shopping
    • Columns
  • Pop.Life
    • Newsmakers
    • Hangouts
    • A-Pop
    • Post Its
    • Performances
    • Malls & Bazaars
    • Hobbies & Collections
  • Technology
    • Gadgets
    • Computers
    • Business
    • Tech Plus
  • MS ON THE ROAD
    • Sedan
    • SUV
    • Truck
    • Bike
    • Accessories
    • Motoring Plus
    • Commuter’s Corner
  • Home & Design
    • Residential
    • Commercial
    • Construction
    • Interior
  • Spotlight
  • Gallery
    • Photos
    • Videos
  • Events
    • Seminars
    • Exhibits
    • Community
  • Biyahero
    • Travel Features
    • Travel Reels
    • Travel Logs
  • Pets
  • Advertise with Us

© 2021 Manila Standard - Designed and Developed by Neitiviti Studios.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Install Manila Standard Web App

Install App