SMC cancels PBA ads

In a move catching everybody in the PBA circle by surprise, San Miguel Corp. pulled out its huge package of advertisements in the league, canceling in particular a big number of spots during the TV coverage of Game Six of the Purefoods-Sta. Lucia title series.

The Starcom advertising agency informed ABC 5 of San Miguel’s decision in a letter dated Feb 26, canceling “effective immediately” all of SMC’s media values placed with the TV network for the rest of the tournament.

Among the media values pulled out were those of Monterey, Nutri Oil, Purefoods Chunkee, Magnolia, San Miguel Pale Pilsen, San Mig Light, Red Horse, Gran Matador Brandy, Purefoods TJ Hotdogs, Star Margarine, Magnolia Fresh Milk, Magnolia Health Tea and Fruit Drink, San Mig Coffee and San Mig Strong Ice.

These brands were advertised either through TV spots, virtual ads or the roll tech inside the playing venue.

Neither SMC nor its ad agency explained the reason for the cancellation.

Purefoods, a corporation under the giant SMC umbrella, was the first to pull out its ads, a move seen as a direct offshoot of the “James Yap issue.”

Though the PBA board had decided on the matter, Purefoods governor Rene Pardo said he’ll still discuss it with the board in its meeting today.

“Actually, ad cancellations do happen. What’s surprising is this thing was done in a Game Six of the finals when a product gets good exposure,” said an ABC 5 insider.

The same source said the TV network lost so much on the SMC ad pullout just in Game Six. The source, however, couldn’t give a figure.

ABC 5 is in the final year of a three-year contract with the league as exclusive TV coveror. The network is to pay the league P80 million this season.

SMC has been ABC 5’s biggest advertiser, reportedly putting a package amounting around P30 million per season.  -Nelson Beltran