The Effectiveness of Digital Marketing in the Philippines

Talk to business owners investing in the Philippines and you will inevitably soon be hearing about digital marketing. With the country’s rising middle class, a growing number of internet users (about 76 million in 2019), and heavy online activity per user (a daily average of 9 hours and 45 minutes), entrepreneurs are poised to reach more Filipino consumers with strategic online marketing and advertising.

Investment in digital ads shows no signs of slowing down. With online shopping becoming increasingly popular among young Filipinos, the Philippines has a strong e-commerce growth potential. From $7.9 billion in 2017, the e-commerce market is expected to reach $10 billion by 2025.

Ad spending in the Philippines has increased year-on-year, with an annual growth rate of 9.7% and a total market volume of US$662 million in 2020 (source). The Search advertising segment gets the lion’s share of the country’s digital advertising market volume at US$342 million with a projected yearly growth rate of 4.4%. It is followed by Classifieds (US$91m, 4.3%), Social Media Advertising (US$89m,7.4%), Banner Advertising (US$85m, 4.3%), and Video Advertising (US$55m, 5.8%).

Of these five segments, social media advertising has shown the highest expected annual growth rate. Why? About 88% of social media users in the Philippines are on Facebook, making it an attractive platform for businesses, big and small, to increase brand awareness, generate leads, and drive revenue.

Social media marketing and paid advertising can be helpful for many brands reaching out to Filipino consumers. However, make sure that you’ve identified your goals and audience when choosing which kind of digital advertising you want to use for your business. Lastly, keep it a habit to measure and analyze your results to see what’s working and what needs tweaking in your marketing strategy.

Aileen Jazbec

A master student in Online Business & Marketing with an entrepreneurial mindset who grew up in the Philippines lived and worked in Oman and is now settled in Switzerland. My blog shall build bridges to the Digital Marketing World of the Philippines. Let me show you some insights, trends and maybe even business opportunities in my home country. Follow me and feel free to keep me busy with your questions, ideas, and feedback.

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3 thoughts on “The Effectiveness of Digital Marketing in the Philippines

  1. Social media marketing and paid advertising can be helpful for many brands reaching out to Filipino consumers. That’s true, social media marketing is cost-effective and saves you a lot of money. You are not required to pay for print advertisements. Your friends can share your social media material without actively doing so. When combined with SEO, your brand will be able to reach far-flung corners of the globe. Posting high-quality content is the most effective approach to market your company. You may also want to know more about why a strategic plan is crucial to social media marketing –
    Thank you for sharing this great article.

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