Philippine Business Magazine: Volume 13 No. 9 - Cover

Advertising and the New Consumer

The advertising industry reinvents itself to keep up with the changing consumer

By Ton C. Reyes

New Philippine industries have been redefined and re-engineered as frequently as the advertising industry. Thanks to technological advances and constantly evolving lifestyles, advertising has had to continuously reinvent itself, so as to remain relevant to advertisers and the consuming public alike.

Indeed, the advertising industry has not faced as many opportunities and as many threats as it is facing now. With new media platforms and new technologies coming to the fore, the challenge facing advertising agencies is both real and daunting. Add to these the emergence of consumers whose consumption habits are vastly different from those of their parents’.

The Filipino Consumer

Market research reveals that today’s consumers have indeed changed, with many of the differences driven by technology. The McCann Erickson Intergeneration Study conducted in 2005 shows, for instance, that today’s Filipino teenager is very different from his counterpart 10 years ago. “The changes between 2000 and 2005 are more dramatic than the changes noted between 1992 and 2000,” notes Nandy Villar, managing director of McCann Erickson.

The New Filipino Consumer is skeptical and cynical about ads’ promises and product benefits feels empowered because there is so much choice is frustrated at his lack of purchasing power is mildly interested in the companies behind the brand

For instance, a lot more teenagers are plugged in. Computers and mobile phones occupy more of their attention, leaving such traditional media outlets as television, radio, and print to dust. The youth are also very different, by choice. Yolanda Villanueva-Ong, group chairperson of Campaigns and Grey, prefers to attribute this to the “cool” factor. “Actually, in all generations from the time of Elvis to the current Boy Band or ‘it’ icon, the youth always see themselves as different and highly individualistic people. Anything that reminds them of their father’s preferred brands will most definitely not click with them.”

Villar also points out that the attention of consumers is extremely fragmented. “There are so much more interests, and advertisers need to compete for attention, time, and share of wallet,” explains Villar. More things have been added to the basket of goods, sources of leisure activities, and choices of media. Money and time, however, remain finite resources—thus, the immense challenge confronting both advertisers and agencies alike.

According to Ong, the typical Filipino consumer is “skeptical and cynical about ads’ promises and product benefits; feeling empowered because there is so much choice; frustrated at his lack of purchasing power; and mildly interested in the companies behind the brand. Some are even curious about what good deeds these manufacturers give back to society by way of CSR [corporate social responsibility] programs.”

For sure, traditional advertising has long ceased to be effective. “It is no longer as simple as it was before,” states Villar, when a 30-seconder in a top-rating TV station sufficed to spread one’s message. Choice of media vehicle and timing are now very important. Outshining competition does not simply mean more spots and spending more money. “It is so much tougher now,” reveals Villar.

Focus is Key

To be heard better by the right group, a more surgical approach is needed by advertisers. “You can’t just rely on air cover. You have to zero in and target your consumer,” notes Villar.

Adds Ong, “The knee-jerk reaction of most advertisers is to inundate and overwhelm the consumer or viewer with the frequency of their ads. (Now we know where ‘ad nauseam’ comes from). But the other move that advertisers resort to is to catch the target at every possible ‘touch point,’ in every available channel from the Internet, to shopper marketing, to events.”

These direct-to-consumer efforts are called activation marketing, a form of micromedia that goes after each consumer personally, in a way, as an opposite reaction to traditional mass media efforts.

Great Advertising

Still, there remain “winners” and “losers” among the traditional advertisements. Ong defines the engaging ads as “those that viewers actually like watching even if they intrude in their favorite game show or telenovela. These are the ads that still deliver the message despite the clutter.” Ong explains further, “The simplest and most basic definition is that ‘effective’ advertising is that which sells the product and builds market share. But I always add that it’s only ‘great’ advertising that can turn a product into a well-loved brand and convert consumers into brand evangelists.”

Indeed, with the deluge of new media and platforms, advertisers have to deal with the challenge of finding the right platforms to deliver their message to their ever-elusive audiences. “Advertising is changing. It is a global phenomenon,” professes Villar. For sure, advertisers are coping, but each day, consumers are running faster than they are. “There is a lot of catching up to do,” he states. “Advertising practitioners just have to work faster and anticipate better.”

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