2020 PH Media Trends
Jay Bautista January 28, 2020 Ten Media Trends to Consider… TV
#1. Digitization accelerates! What’s next? There are now more flatscreen homes than CRT homes
TV type in % 2016 2017 2018 2019
58 51 53 46
2 3 CRT Plasma/LCD/LED 3D TV
Kantar Television Establishment Survey (TVES) 2017-2019 Base: Total TV Homes Interviewed DTT continues growth across all areas DTT incidence in % Urban Philippines 2017 2018 2019 100
80 66 67 65 60 56 60 51 40 39 40 33
% of TV Homes TV of % 22 20 13 16 14 7 8 7 5 1 0 Urban Mega Metro Suburbs Urban Urban Urban Urban Urban Philippines Manila Manila North Central South Visayas Mindanao Luzon Luzon Luzon
Kantar Television Establishment Survey (TVES) 2017-2019 Base: Total TV Homes Interviewed 5 Outside Mega Manila is next frontier DTT incidence in % Rural Philippines 100.0 2017 2018 2019
80.0
60.0 44.2
40.0 % of TV Homes TV of % 20.0 16.3 12.2 10.9 5.2 1.4 0.0 Rural Philippines Rural North Luzon Rural Central Luzon Rural South Luzon Rural Visayas Rural Mindanao
Kantar Television Establishment Survey (TVES) 2017-2019 Base: Total TV Homes Interviewed 6 TV
# 1. Digitization accelerates! What’s next? # 2. From Cable TV to Satellite TV, competition heats up! Rural is more connected than ever Satellite subscription in %
2017 2018 2019 2017 2018 2019 100 100
80 80
60 60 50.68 38.83 40
40 33.70 Homes TV of % 27.77 28.65 % of TV Homes TV of % 20.70 20 20 8.38 10.53 0 0 Rural North Rural Rural South Rural Rural Total Philippines Urban Philippines Rural Philippines Luzon Central Luzon Visayas Mindanao Luzon
Kantar Television Establishment Survey (TVES) 2017-2019 Base: Total TV Homes Interviewed 8 Healthier competition for Satellite players % of Pay TV Homes by Pay TV Provider
Satellite TV 2018 2019 45 40 36.0 35 30 25 23.4 19.5 20 15
% of Pay TV TV Homes % Pay of 10 5 1.2 0 Cignal TV GSAT Sky Direct Others TV
# 1. Digitization accelerates! What’s next? # 2. From Cable TV to Satellite TV, competition heats up! # 3. TV Viewing get’s a boost! TV viewing minutes in the afternoon (3-6PM) increases Average Viewing Minutes 100 90 92 80 86 70 70 60 61 62 62 50 40 41 40 30 35 37 20 20 10 17 0 TTV ABS-CBN GMA TV 5 Total Pay TV Balance FTA 2017 2018 2019*
Region: Total Philippines, Target: Ind. 2+, Channel: Total TV, Unit: AvTime(View) *2019 data is from Jan-Oct 2019 A third peak appears Historical Shape of the Day (Weekdays) 2017 2018 2019*
50 11.8% 9.0%
40
30
Rtg% 20 8.4% 7.5%
10
0
7.5%
9:00 2:00 3:00 4:00 5:00 6:00 7:00 8:00
10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00 24:00 25:00
Region: Total Philippines, Target: Ind. 2+, Channel: Total TV 12 *2019 Data covers Jan-Oct 2019 only TV
# 1. Digitization accelerates! What’s next? # 2. From Cable TV to Satellite TV, competition heats up! # 3. TV Viewing get’s a boost! # 4. Will Cardo survive 2020? Cardo’s Fate after 4 years, 7 seasons FPJ’s Ang Probinsyano Ratings by Season
30.0 27.8 27.3 26.7 27.2 25.4 24.8 24.0
20.0
% Rtg
10.0
1 2 3 4 5 6 7 0.0 Themes: Syndicate Rebellion and Political Crime and Terrorism Corruption
Region: Total Philippines, Target: Ind. 2+, Channel: Total TV Photo © ABS-CBN Corporation Or a new beginning?
• All episodes available on demand on • Season 1 available on Netflix iWant • Streaming service boasts 154 million • Streaming service boasts 13 million users as of July 2019 worldwide users Radio
# 5. Digital transformation is music to their ears. Access to Radio Listened in Past Week
2016 2018
50% 52%
Sources: Media Habits Survey 2016 and 2018 Base (2016): Individuals aged 10 years old and above Base (2018): Individuals aged 13 years old and above Places of Listening - Work
40% increase
Sources: Media Habits Survey 2016 and 2018 Base (2016): Individuals aged 10 years old and above Base (2018): Individuals aged 13 years old and above Devices Used
In Mega Manila, mobile phones now outrank traditional radio sets.
30% higher
Sources: Media Habits Survey 2016 and 2018 Base (2016): Individuals aged 10 years old and above Base (2018): Individuals aged 13 years old and above DJ influencers will liven up radio
Radio DJs Influencers
Instead of cannibalization, digital platforms will boost radio listenership, with radio DJs taking on improved roles as influencers
Picture sourced from: https://www.goodnewspilipinas.com/7-filipino-radio-djs-famous-for-good-vibes- and-love-advice/ Top Advertisers that are spending on Radio By Spend, Jan-Sept 2019
01 02 03 04 05
06 07 08 09 10
Source: Kantar Tri-Media Ad Expenditure database, Date: January-September 2019 Print
# 6. Credibility and Trust never goes out of style. Newspaper Readership on Print versus Online Total Philippines
Read Broadsheet on Print Read Online Newspaper 2016 2018 2016 2018
7.7
3.5
0.5 2.1
2016 2018
MHS 2016 Base: All Individuals 10+ MHS 2018 Base: All individuals 13+ 23 When managing bad publicity offline wins on credibility Using a mix of online and offline channels, brands can combine authenticity with immediacy and urgency
believe news, articles and features in print are a good way for brands to combat 36% negative publicity
28% believe news, articles and features online are a good way for brands to combat negative publicity
Base: 5,000 connected consumers. Source: Kantar DIMENSION study 2019 Print will drive the brand’s audience to owned media
Newspapers and Magazine have a real opportunity to deliver a brands message authentically 78 Friends and family Newspaper and magazine articles represent a real opportunity – as long as consumers can be persuaded to go there in their search for information. 70 Review sites
63 Internet / Websites Newspaper / magazine articles
54 53 Blogs / Vlogs Company website Social media 49 Smart speaker / 46 audio enabled device 44 42 Celebrity endorsements Advertising 33 Out of Home
# 7. Industry finds it’s second wind! The State of Out of Home Advertising Outside the Philippines
27 Media Exposure vs Adspend
Media Touchpoint* Reach (Past 7 Annual Adspend Days) Share TV 95% 65% Digital 63% 7% OOH 56% 2% Radio 52% 27% Print 5% 1%
*2018 Media Habits Study (Urban Philippines) 2019 YTD Advertising Intelligence Report OOH will be energized by new research
Introducing OOH Media Metrics: a study which will be able to answer questions about the exposure and effectiveness of OOH ads to make it comparable with other media touchpoints like TV, Radio and Digital. https://xd.adobe.com/view/d4a7ca25-5c71-42ae-7b25- f2bb7b29e902-a296/?fullscreen
Source: Kantar – SCMI OOH Media Metrics Launch
OOH will be energized by metrics, research
Out of Home advertising will see significant improvement with the introduction of new OOH audience measurement tools
Source; Kantar Media OOH Media Metrics for Instar Analytics Digital
# 8. Digital video ads will be the norm. TV, Radio & Print Advertising Expenditure Total Philippines 565 530 554 Billion Billion Billion 2017 2018 2019 1. Detergents & Laundry 1. Detergents & Laundry 1. Detergents & Laundry Aids Aids Aids 2. Hair Shampoo 2. Milk Powder 2. Milk Powder 3. Milk Powder 3. Hair Shampoo 3. Hair Shampoo 4. Corporate Advertising 4. Herbal Supplements 4. Herbal Supplements 5. Coffee & Tea 5. Soaps 5. Vitamins
Categories Categories Categories
Source: Kantar Tri-Media Ad Expenditure database, 37 Date: January-September 2017, 2018, and 2019 Costs are based on published rate cards Historical Adspend 2019 Share of Spend (%) Cost in billions, Jan-Sept 2017-2019 TV Radio Print Digital
565 37 7% Digital 1%
554 27% 530 ₱ 65%
2017 2018 2019
Source: Kantar Tri-Media Ad Expenditure database, 38 Date: January-September 2017, 2018 and 2019 Costs are based on published rate cards Video ads in digital will dominate Adspend per Channel, Q1-Q3 2019
Video vs Display Ads
Desktop Video Desktop Display Video Display Mobile Display Mobile Video
20%
8%
57% 15% Jan Feb Mar Apr May Jun Jul Aug Sept
Source: Digital Ad Expenditure database, Date: January-September 2019 39 Costs are based on published rate cards Digital
# 8. Digital video ads will be the norm. # 9. Online brands recognize value of traditional media. Expect digital brands in traditional spaces Advertising expenditure in Php, Q1-Q3 2019
Brand TV Radio Print TRIVAGO 5 B - - IWANT 4 B 400 K - SHOPEE 400 M 300 K 500 K LAZADA 250 M 500 K - CAROUSELL 100 M - - SPOTIFY 100 M 43 M - GRAB PHILIPPINES 200 K 2 M 100 K TRAVELOKA 800 K - KLOOK TRAVEL - 7 M 100 K
Source: Kantar TV Advertising Expenditure database Q1-Q3 2019 *Costs are based on published rate cards Only Thematic and Promotion spots are included Digital
# 8. Digital video ads will be the norm. # 9. Online brands recognize value of traditional media. # 10. TV and Social Media (from strength to strength). TV and Social Media’s mutual benefit Kantar Social TV Ratings It’s Showtime 10th Anniversary Special, Oct 2019 Week Week Week Week 43 Week 40 41 42 Magpasikat 44 Week 2019 Average Rating per 8.06 8.50 8.10 10.77 7.57 Broadcast Average Number of Television 2,251 4,293 4,842 5,575 3,514 and Tweets Facebook Posts’ 8,810,817 21,610,911 10,465,791 29,238,582 6,262,653 Social Media Total Reach Facebook Posts’ 15,359 30,606 17,893 30,719 11,240 Total Comments Instagram Posts’ 6,173,400 5,952,114 4,915,737 14,789,928 2,879,586 Total Reach Instagram Posts’ 1,245 1,506 1,377 3,763 747 Total Comments
Source: Kantar Social TV Ratings, The Philippines, 2019 Spam accounts removed. TV ratings based on Kantar Urban-Rural TV Audience Measurement (Ind 2+) data. It’s Showtime 10th Anniversary Special October 26, 2019 (Saturday) Kantar Social TV Ratings
Number of Tweets x TV Ratings (Minute by Minute) 100 16
90 14
80 12 70
10 60 Even after the broadcast, Tweeters are still
talking about It’s Showtime. Around 25% of the % 50 8
Tweets generated during this time were of positive Rtg sentiment, congratulating Team Vice for taking this 40
year’s Magpasikat championship. 6 Number ofTweets
30 Interestingly, there were also Tweets sent after the 4 20 broadcast window expressing sadness and disappointment when Karylle and Ryan Bang’s 2 10 performance did not earn them a spot in the top 3.
0 0
1:00:00 1:05:00 1:10:00 1:15:00 1:20:00 1:25:00 1:30:00 1:35:00 1:40:00 1:45:00 1:50:00 1:55:00 2:00:00 2:05:00 2:10:00 2:15:00 2:20:00 2:25:00 2:30:00 2:35:00 2:40:00 2:45:00 2:50:00 2:55:00 3:00:00 3:05:00 3:10:00 3:15:00 3:20:00 3:25:00 3:30:00 3:35:00 3:40:00 3:45:00 3:50:00 3:55:00 4:00:00 4:05:00 4:10:00 4:15:00 4:20:00 4:25:00 4:30:00 4:35:00 4:40:00 4:45:00 4:50:00 4:55:00 5:00:00
11:30:00 11:35:00 11:40:00 11:45:00 11:50:00 11:55:00 12:00:00 12:05:00 12:10:00 12:15:00 12:20:00 12:25:00 12:30:00 12:35:00 12:40:00 12:45:00 12:50:00 12:55:00
Source: Kantar Social TV Ratings, The Philippines, 2019 Spam accounts removed. TV ratings based on Kantar Urban-Rural TV Audience Measurement (Ind 2+) data. NBA FINALS 2019 GAME 6, 08:58 to 11:50AM, ABS-CBN Kantar Social TV Ratings
Number of Tweets Rtg(000) 1,400 12,000 The peak moment of interaction occurred at 1,200 11:49AM with 1,181 Tweets sent in just one minute! The Toronto Raptors make history as they claim their 10,000 first-ever NBA championship. 1,000 8,000
800
6,000 (000) 600 20.8% of the Tweets generated during the whole broadcast window were of positive Rtg sentiment. 4,000
Number of Tweets Number of Tweets 400
2,000 200
0 0
8:58 9:02 9:06 9:10 9:14 9:18 9:22 9:26 9:30 9:34 9:38 9:42 9:46 9:50 9:54 9:58
10:34 11:06 11:38 10:02 10:06 10:10 10:14 10:18 10:22 10:26 10:30 10:38 10:42 10:46 10:50 10:54 10:58 11:02 11:10 11:14 11:18 11:22 11:26 11:30 11:34 11:42 11:46 11:50
Source: Kantar Social TV Ratings, The Philippines, 2019 Data collected from broadcast window only. 45 TV Ratings based on Kantar Urban-Rural Television Audience Measurement (Ind 13+) data 10 Media Trends in 2020
# 1. Digital TV is becoming the norm. # 2. Is it time to tap the Satellite TV market? # 3. Expect more exciting late afternoon programs. # 4. Cardo is here to stay…at least in 2020. # 5. Radio will capitalize on it’s digital strengths. # 6. Print will remain resilient. # 7. Watch out for OOH. # 8. Expect more video ads. # 9. Get used to digital brands on traditional media platforms. # 10. Live TV and Social media will continue to trend.
Jay Bautista [email protected] +63 2 8555 3502