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Philippine Business Magazine: Volume 10 No. 2 - Industry
Everywhere ads
Outdoor advertising is becoming a more popular avenue for reaching a consumer base that is increasingly on the go and on the road
By Pamela M. Sio
 

In an increasingly competitive market, advertisers are continually challenged to reach a consumer base that is regularly bombarded with advertisements as they watch the TV, listen to the radio, and read their daily newspaper. Notably, the Philippines is not far behind its Asia-Pacific neighbors in terms of overall advertising spending. Despite the economic slowdown, ad spending may have slowed but its growth is still positive.



For the average Filipino consumer, advertisements continually seek to grab his limited attention span to convince him to use more, buy more, see more, and acquire more. And the consumer can now get this message not only through the traditional tri-media channels, but even as he downloads his web-based email, surfs through the net, goes to the cinema and, limited as it may still be, checks ad-text messages.

Amidst all this, the growth in lighted and tri-vision displays, painted and neon billboards, and colorful signs, as seen in Metro Manila’s traffic-filled highways and roads, highlight the growing popularity of outdoor advertising.

Ads on the road for consumers on the go
Many consumers are now spending a large portion of their time outside the home and on the road as they go to and from the office – thanks to heavy traffic. Consumers in transit to and from a place get the advertiser’s message through eye-catching signs that are colorful by day and even more distinct at night. In this respect, the notorious Metro Manila traffic can give outdoor advertisements a distinct advantage since billboards, neon signs, and colorful posters cater to a captive audience. Unlike the traditional TV, radio and print channels, this is a medium that cannot be hurriedly flipped through, switched off or turned down. It is thus no surprise that makers and users of outdoor advertising aggressively seek for boards that are, as one maker describes it, “strategically located in the traffic areas within the metropolis.”

Outdoor media offers a variety of advantages. For one, the primary message of the advertiser is up and on display twenty-four hours a day, seven days a week – at rates that are far lower than a TV spot. In addition, advances in print and computer media technology have given advertisers more flexibility in creatively presenting a concept or idea to the public. Despite being fixed geographically, strategically-located outdoor advertisements can effectively and frequently reach consumers that regularly ply certain routes or major roads. Frequency compensates for geographic limitation. Today, the variety in the forms of outdoor advertising has made it even easier to reach the commuter-consumer.

The eye-catching variety of outdoor advertisements present the creative flexibility provided by improvements in technology as well as the resourceful inventiveness of outdoor media companies that seek to bring the advertiser closer to the consumer. Simple black-and-white, hand-painted or plain billboards are increasingly being replaced by billboards made more dramatic and flashy through bright neon lights, full spotlights, and tri-vision displays. Images that were once difficult to enlarge and capture through hand-painting can now be easily reproduced in huge formats through graphic computer technology.

Likewise, our streets are increasingly showing the use of transit media or advertising through the use of buses, vans and indoor ads in public transportation vehicles. There are now ad-vans that regularly ply Metro Manila’s major routes to literally bring advertising to where the consumer is – on the road. The same concept is applied in buses fully splashed and painted in color and print that, for instance, boasts of the hair care effects of a popular shampoo.

But can outdoor media really compare with traditional tri-media advertising? In the Philippines, spending on outdoor media is still far from significant. A large portion of the advertising budget still goes to TV, radio and print advertisements – given of course the distinct advantage they offer in terms of coverage and reach. Twenty seconds on TV or the radio, or a half-page ad in a national paper, after all, can still reach the most number of people at one time.

In developed markets like the United States, the increasing recognition of the importance and impact of outdoor advertising is reflected in the expanding amounts allocated to this form of advertising. In 2001 alone, the Outdoor Advertising Association of America reported that around US$5.1 billion was spent on outdoor advertising, with approximately 60% of that going to billboards and nearly 20% going to transit media.

Nonetheless, while the over-all advertising budget for outdoor advertising barely compares with that spent on tri-media, it is still becoming recognized as a cost-efficient and effective way of reaching consumers, particularly in large urban areas like Metro Manila. In general, outdoor advertising is cheaper than spending on TV or newspaper advertisements. A P200,000 to P300,000 budget can already provide for at least a month’s exposure in outdoor advertising (although contracts are generally guaranteed for at least a year) whereas this same budget can generally only buy a one-day full-page advertisement in a large newspaper or a few seconds on TV.

Arguably, outdoor advertising can play an important role in reaching the consumer as it complements the impact of tri-media advertising. Carlo Llave, President of the Outdoor Advertising Association of the Philippines, even argues that “outdoor advertising is equally important as any of the tri-media.” He explains. “Some advertisers don’t realize that it roughly takes only 15 billboards strategically located inside Metro Manila to reach the 15 million people who live and work in the mega-city everyday. The cost for one year – about the cost of 20 thirty-seconders on TV! With 30 additional billboards, almost all populations in key cities of the Philippines can be reached.” As such, with the proper planning and the effective use of this manner of reaching the consumer, outdoor advertising can indeed be a key component of any advertising strategy seeking to reach the highly mobile, frequently on-the-go consumer.



 
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