Smart eyes chunk of P2.2-B digital advertising business

MANILA, Philippines - Wireless giant Smart Communications Inc., a unit of dominant carrier Philippine Long Distance Telephone Co. (PLDT), is looking at cornering a chunk of the fast growing P2.2 billion digital advertising business in the country.

Leah Besa-Jimenez, head of the Media Convergence Group of Smart, said in a press conference that the company through Smart Ads is now offering a new suite of mobile advertising services that can deliver time – and location – sensitive ads to mobile phone users.

She said major clients include Nestle, Unilever, FamilyMart, Jollibee, McDonalds, Uniqlo and is now targeting banks, technology firms, oil companies, services, among others.

Executed on or with mobile devices, such as a smartphones and tablets, mobile marketing has the capability to deliver to a customer time and location sensitive, personalized advertisements promoting goods, services and even ideas.

She pointed out that the service is lucrative for Smart since a study conducted by GfK in 2012 showed that the Philippines is the fastest growing smartphone market in Southeast Asia.

Moreover, in 2011 the Nielsen Southeast Asia Digital Consumer Report indicated that almost two-thirds of Filipino mobile users have Internet-capable phones.

Mobile analytics outfit, InMobi pointed out that 67 percent of mobile Internet users use their phones as their primary or exclusive access point to the Internet.

According to her, the country’s digital advertising business has been growing by an average of 30 percent to 36 percent per year since 2009.

For decades, advertisers have devoted a huge chunk of their spending on primetime radio and television spots to reach the largest possible audience.

But with the rapid rise in mobile phone usage globally, Besa-Jimenez said advertisers no longer have to wait for their target market to go home and turn on their TV sets to get their message across.

With Smart Ads, companies have the potential to reach about 72 million mobile phone users.

According to her, about 12 million Smart and Talk ‘n Text subscribers have been profiled for mobile advertising.

She said the figure is continuously growing as the majority of Smart and Talk ‘n Text subscribers are open to receiving mobile advertisements.

She added that the company is set to soon include Sun Cellular subscribers.

Aside from giving brands a wide and targeted reach, she pointed out that mobile offers deeper audience engagement.

“The medium delivers more than awareness. It drives a sustained brand experience and creates opportunities for consumers to socialize with brands. Mobile is in every step of the whole purchasing cycle,” she said.

With synergies with the rest of the PLDT group including TV5 and Sun Cellular, Smart is in a good position to offer businesses a converged or mixed media strategy.