Digital marketing in the Philippines changes as fast as it grows. But what has changed in the past few years?
Digital marketing in the Philippines changes as fast as it grows after the rise of e-commerce and the still-growing power of social media marketing, digital marketing solutions for small businesses are now a necessary element for business success. But what has changed in the past few years? This article will discuss the current digital marketing landscape in the Philippines.
Digital Marketing in the Philippines
Digital marketing in the Philippines is every business’ most rational action. There are no ifs or buts about it: it would be a fool’s errand to consider overlooking the potential of marketing to Philippine consumers online. It should be any company’s top marketing strategy, considering the country’s strong digital presence and the online savviness of its population.
There is a vast audience online for businesses embarking on digital marketing in the Philippines. So far, the response has been more than promising, as digital marketing specialists can launch their campaigns onto a massive pool of potential customers and consumers of varying ages and backgrounds, all while being able to gather information on them at the same time.
As you look closer into the digital marketing landscape, there’s plenty of evidence to prove that it’s only going to get even more significant.
First, let’s talk about some numbers:
- The country has over 76 million internet users, proving the Philippines is on the frontline of an increasingly growing digital marketing landscape. This was driven by Filipinos’ increasing reliance on technology for their day-to-day transactions.
- Ad spending in the country is continuously increasing, with an annual growth rate of 9.7 percent. According to experts, the state of e-commerce in the Philippines is expected to be worth $10 billion by 2025.
- Online shopping is now the norm. Numbers show that 62.5 percent of Filipinos have purchased a product or a service online. Moreover, 57.4 percent of shoppers checked out a brand’s website before buying. This underlines the importance of digital marketing in businesses, big or small.
- On social media platforms, 89 million users come from the Philippines as of January 2021. That’s 80.7% of the total population.
- On mobile platforms, 152.4 million mobile connections are tracked back to Philippine users. There are more Philippine mobile connections than there are people in the Philippines itself!
- Influencer marketing remains relevant. Recent data shows that 70 percent of Filipino shoppers decided to buy a product or avail of a service after being endorsed by an influencer. Consequently, user-generated content is now one of the most preferred materials in digital marketing in the Philippines. This is because customers are more convinced to purchase after seeing real-life experiences from other users.
How do Filipinos use the internet?
To understand how digital marketing in the Philippines has grown (and continues to grow), it’s critical to understand how many people live their lives heavily connected through the internet. The internet penetration showed a 59.5% increase in the past five years alone. In the Philippines, which is still primarily considered a third-world country, there’s no reason not to be online.
Filipinos spend nine hours and 45 minutes a day being online on average. They spend an average of 3 hours and 53 minutes on social media, with Facebook and YouTube taking up most of their time at 96% and 95%, respectively. Instagram and Twitter follow at 64% and 56%. Communication gets done primarily online as well. FB Messenger is most used at 89%, followed by Skype at 37% and Viber at 34%.
Online shopping has also increased in the Philippines, lending the image of sustained growth for the eCommerce sector. In 2017, the market already reached $7.0 billion, expecting it to get as high as $10 billion by 2025. As a result, digital marketing in the Philippines has gained more ground as specialists realized that this substantial audience gave them a tremendous opportunity.
A goldmine for businesses in the Philippines
Filipinos are known to be social, having ingrained in our DNA curiosity and the habit of always being in the “loop”. Combining this with the interconnectivity and strong internet penetration in the Philippines, you have an engaged online audience. Filipinos being aware of the trends on social media, and willing to absorb information from these platforms, it would be foolish not to take advantage of it from a marketing perspective. Combined with the Filipinos’ natural curiosity and interest in imaginative, emotionally poignant, or funny marketing campaigns, there’s a strong chance that a company with the right digital marketing campaign reaps some meaningful ROI.
Take, for example, Orocan Philippines’ hilarious, self-deprecating campaign where it took the Filipino slang use of “plastic” for a fake person and delivered it as a means to sell their rather infamous line of plastic goods. Their online ads about “plastikan” drew laughs on social media, and the crown jewel of their campaign is the YouTube video of Victor Anastacio hawking their plastic products. It was a real hit, garnering a 24.5% sales increase for the company in 2019.
Need more evidence of why digital marketing in the Philippines is effective? Filipinos and Philippine companies jump onto trends and memes with great enthusiasm, especially when it strikes a chord in them with perfect timing. Even during the peak of the pandemic Philippine social media lit up with “lugaw is essential” going viral. The line drew attention as it stemmed from the people’s reaction to a video wherein a hapless food delivery person bearing rice porridge got stopped by LGU personnel from making his delivery, declaring the food “non-essential.”
Creative and somewhat snarky social media posts are another famous tactic for effective digital marketing in the Philippines. With Filipinos’ propensity for “alaskahan” or teasing, it’s these social media posts, images, and captions loaded with double-entendres that are a source of entertainment.
Ligo Sardines Philippines, one of the biggest brands of canned food in the country, essentially turned itself into a voice of the people during the beginning of the pandemic in 2020. Their social media posts directly allude to relatable political and societal issues that trend as the country grapples with the pandemic. It garnered plenty of brand equity among consumers and fellow creatives in other digital marketing services in the Philippines, further increasing trust and brand recall.
What makes Digital Marketing in the Philippines effective?
Being informative and taking part in the sociopolitical sphere
Most people in the Philippines prefer the direction digital marketing is going now. With how creative and informative campaigns are, people welcome getting marketed while being informed of what’s going on around the country.
Filipinos are more inclined to engage when the message is relevant and tackling topics that they feel they should be a part of. A study showed that 61% of Filipinos feel that brands should maintain this trend of being informative in their campaigns, especially around social, political, national, health, and environmental issues.
Emotion-evoking campaigns remain king
In the same study, 59% of Filipinos also liked funny, heartrending, or inspiring ads the most. Emotions are a great tactic in digital marketing. The Philippines enjoys online entertainment that provide a sense of humor and evokes positive feelings.
The warm, inspiring content lets them feel hopeful about the world around them and aids them in getting through day-to-day challenges. This optimistic outlook, letting people feel heard or understood, bodes well for brands that take up the tactic, such as Ligo’s example made in the previous section.
eCommerce stands to benefit the most from digital marketing
A Global Web study revealed that Filipinos have taken online shopping with enthusiasm and are likely to continue doing so. Small businesses in the eCommerce industry planning to gain a foothold in the market will benefit from opening online storefronts and creating digital marketing campaigns.
Some examples are social media ads, using analytics to gather information about their target customers and audiences, and developing campaigns that ride along with the current online trends and issues.
Visuals are the best option
Businesses in the Philippines have seen the effectiveness of visuals and design: colorful and well-designed ads, social media posts, videos, and infographics. Attention span on social media can be notoriously short so good visuals are the best option to quickly convey your message or evoke an emotion making your audience more interested.
A visual disruption is an excellent option for maintaining the attention of anyone scrolling quickly down their timelines and newsfeeds. These are done with thoughtfully crafted designs that break the monotony of feeds while making them interesting for the audience.
Consistent branding is also important so your brand can be recognized easily and quickly. Online shopping malls like Shopee Philippines and Lazada utilize this by presenting social media posts and ads that prominently feature their famous colors, images, jingles, etc.
Brands grow through social media presence
39% of Filipinos typically check social media before they do anything online, which applies to online shopping. This includes going to social media to seek out the opinions and reviews of others before making a purchase. This is precisely why digital marketing in the Philippines is firmly rooted in social media.
eCommerce businesses will benefit from creating a presence on visual-heavy social media platforms such as Facebook, Instagram, Twitter, and TikTok. They can advertise their stores and promos there. Interacting with users and potential customers is also best done on social media, as many Filipinos use these social media platforms to communicate with brands and businesses.
Chatbots for Facebook Messenger help facilitate customer service queries for growing brands and help make discussions smoother. Social media managers can also answer customer questions or complaints in the comments sections of their brand posts. This makes customers feel heard and their concerns addressed. [Read: Eight Media’s Social Media Marketing Guide]
What’s Next for Digital Marketing in the Philippines?
Ever wondered what’s in and what’s out in the world of digital marketing? Here are some things expected to take over the landscape this year and in the future:
Continuous growth for businesses that utilize digital marketing in the Philippines
Digital marketing in the Philippines continues to grow and is projected to grow up to five years into the future. Micro, small, and medium-sized enterprises, especially businesses in eCommerce, within the Philippines stand to benefit significantly from digital marketing and online advertising campaigns in social media.
There is every opportunity for a business and a brand to grow by appealing to your audience’s emotions and interests. You can grab their attention with visually striking and informative campaigns, and develop a connection with potential customers. Digital marketing has grown and continues to grow throughout the Philippines, offering vast opportunities for local businesses to expand and elevate their brand awareness.
Social Commerce as a new way of shopping
Social commerce, simply put, is the integration of online shopping on social media platforms. With social media still growing, consumers are looking for a more integrated experience. This lets them easily shop without jumping on a separate e-commerce website. Good examples of social commerce are Instagram and Facebook shops.
Diversified Search is the new way of doing product research
The way the market experiences its Zero Moment of Truth (ZMOT) has changed more than ever. ZMOT is a phase in the customer lifecycle where one researches a product before purchasing. While it used to be mostly done by web search before, more and more people are now using diversified search to learn more about a brand. In this process, users utilize a variety of platforms to cull data via additional methods like image and voice search.
This means businesses no longer have to optimize their digital presence for actual humans but for crawlers. Content should now be available in various formats, too.
Artificial Intelligence is relevant now more than ever
AI has strengthened its stronghold in digital marketing solutions for small businesses to fulfill the need for doing repetitive tasks and heavy data analysis. Such is the impact that some members of the industry—from copywriters, artists, and strategists—are worried over its use for fear of making their specializations redundant. However, many digital marketing pros still agree that AI is only here to support the process instead of replacing humans in doing tasks. Read more about the impact of AI in digital marketing by checking out our article here.
Personalization can set you apart from your competitors
Personalization of products and services remains effective in digital marketing in the Philippines. As more and more audiences become immersed online, the market also grows increasingly more expectant of customized experiences for them. A classic example is the personalization of names in email marketing. Today platforms Netflix and Spotify’s recommended content is now considered the gold standard in the industry.
Humanizing brands can bring you closer to your customers
Corporate social responsibilities and strong branding may remain important, but digital nomads are now expecting something more profound from the brands they follow. Advocacies, environmental, and political stances bring a new side to businesses and can help them gain stronger loyalty among their followers. Learn more about the impact of political posts in social media marketing by clicking on our article here.
Be a Part of the Transforming Landscape
Digital marketing in the Philippines will transform more in the coming years. Businesses big and small should put a conscious effort into keeping up with the changes to have a winning chance in an increasingly saturated digital landscape.
Do you want to use the power of digital marketing to propel your business to new heights? Our team here at EightMedia can help. Finally, through our expertise in content marketing, social media marketing, digital ads management, digital design creation, and web creation, we have helped small business owners get a 400 percent increase in leads and a 200 percent increase in revenue while lowering their advertising costs.
Grow your business now by booking a free consultation through this link. Don’t forget to subscribe to our newsletter for more helpful articles like this.
