Future of Philippine Media

The Future of Philippine Media Presented by: Hermie R. De Leon To the Lyceum’s Media Career Forum August 14, 2007

Our Demographic Landscape

Population Trend Unit in millions Source: National Statistics Office 2.36% growth Represents 11% growth from last census – 1995 and 10x than that of the first census in 1903 Growth rate projected to drop to 1.0% from 2030 to 2040. by then, population will be at 142 million 1.95% growth

Household Population Source: National Statistics Office 2000 Housing & Population Census Declined from 5.02 in 1995

Population in Metro Manila The MM urban reading has been expanded to include nearby provinces (CaLaBaR = Cavite, Laguna, Batangas, Rizal). Now known as Mega Manila , it accounts for a total of 34% of the national population Source: National Statistics Office

Population Distribution by Island Clusters Source: National Statistics Office 2000 Housing & Population Census

Population Distribution in key Urban centers Source: National Statistics Office

Population by Gender Unit in ‘000 Base 76,946 78,578 80,234 81,914 83,618 85,346 87,099 88,875 90,676 92,500 94,350 Source: National Statistics Office

Population by Age Group the population is ageing Unit in ‘000 Base 76,946 85,261 94,013 102,965 111,785 120,224 128,110 135,301 141,670 Source: National Statistics Office

Filipinos by HH income higher concentration of rich in urban center MM Source: Nielsen Media Index 12 (Wave 2)

Filipinos by personal income lucrative opportunities for personal gains in MM Source: Nielsen Media Index 12 (Wave 2)

Percentage Distribution of Total Family Expenditure by Major Expenditure Group

Proportion of expenditure on food went down. Consumption at home declined and consumption outside increased suggesting a change in the Filipino family lifestyle of regularly eating outside the home and possibly linked to the growth of fast food chains

Families spent more on transpo and communication as these expenditure moved up to 7.4 percent coming from 6.8 percent 3 years ago

Increase in expenditure were also noted in Fuel Light Water, personal care and effects, clothing, footwear, medical care, durables and miscellaneous expenses such as gifts and contributions

The Filipinos by Socio-Eco Class Source: Nielsen Media Index 12 (Wave 2)

Economic Classification of Homes Nielsen Media Research

Economic Classification of Homes AGB-NMR

The Philippine Media Scene

Media at a Glance 7 VHF / 8 UHF 643 commercial stations 245 AM / 398 FM 105 dailies - 15 Manila & national - 5 Chinese - 85 Provincial 104 titles & growing… Other Media : Cable TV Cinema Out of Home Internet Events Non-trad forms

Media Consumption Trend People 10+ Source: Nielsen Media Index

TV Ownership Source: AGB-NMR Establishment Survey 2005

Channel Performance- Mega Manila 1 st Half of 2006 & 2007 Day of the Week 1 st Half of 2006 1 st Half of 2007 ABS-CBN & GMA7 carried out a slightly enhanced daily performance for the 1 st half of 2007 when compared against their performance during the same period of the past year. However, both channels remained to acquire diminishing ratings during weekends, whereas other VHF channels increase their ratings during the said days. Source: AGBNMR Arianna Total Individuals

Channel Performance- NUTAM 1 st Half of 2007 Day of the Week 1 st Half of 2007 Source: AGBNMR Arianna Total Individuals It can be observed that total TV viewing increases during Fridays and Saturdays but slightly drops during Sundays. ABS-CBN and GMA7’s performance were quite stable except on weekends where their ratings tend to decline. On the other hand, cable channels and other VHF channels enjoy fairly higher ratings on those days.

Philippine Radio

The radio industry is making a comeback

Stations are highly flexible when it comes to media negotiations.

Offering both ATL and BTL opportunities for advertisers

Ingenious ways of cutting through clutter with the use of announcer endorsements (i.e. popular radio celebrities)

The National Radio Survey has been launched as tool for the radio stations to sell radio as a viable medium to reach Filipinos nationwide

Radio Clutter

Commercial load is 17 minutes per program hour

Peak listening hours

6:00 – 9:00 am

5:00 – 7:00 pm

Average cost per 30-sec

AM station: P 20,000 (nationwide)

AM station: 5,200 (other areas)

FM station: 6,500 (Manila)

Radio Listenership across SEC National Urban Source: Nielsen Media Index 2006

Radio Listenership by Age group National Urban Source: Nielsen Media Index 2006

FM Station Listenership past 7 days

Time spent on radio yesterday Source: Synovate Media Atlas Combined Wave 1-4

Radio Shape of the Day % Listerneship

Program Formats Preferred In % Source: Nielsen Media Index 13 Wave 1

Print in figures

60.1% of the population reads newspapers

Patronage is concentrated mostly in urban centers

Newspaper read (yesterday)

Total Philippines 23.6%

Metro Manila 39.1%

Magazine readership

Total Philippines 23.5%

Metro Manila 31.9%

Newspaper Options % Readership Rating

Print Trend

There has been a surge in the publication of new titles for the past 3-5 years

Nearly all facets of lifestyle and age groups have been addressed by foreign (localized) as well as local titles

While we do not see a steep growth in titles just like previous years, we will be seeing more introduction of new titles in the future

The major publications in cooperation with PANA and 4A’s are working with International Federation of Audit Bureau of Circulation on the establishment of an audit to improve the credibility and professionalism of the print industry

OOH Media

To catch the highly mobile urban market, the outdoor (out of home) industry remains to be a viable medium

The billboard industry however faces a drawback as government bureaucracy catches up on them, pushing the outdoor industry to implement improvements and clean up their acts

Despite the drawback, outdoor advertising remain to be a lucrative business to some

Penetration of other out of home contact points may grow faster because of the setback on billboards

Malls, schools, office buildings, hospitals, etc…

Other Media

Highly intrusive encounters are critical to cut through so special product placements are now possible (and in-demand)

Subliminal ads in TV programs and local films

Creative add-ons

Conceptualized segments

Brand bugs

Editorial laid-out press releases

etc

Internet Usage grew dramatically in the past few years In % Source: Nielsen Media Index + 308% + 227% + 32% + 38% Total Urban growth + 168%

Profiling the internet users

Place of Access Source: Nielsen Media Index In % The availability of various access points allow internet usage to cascade through the lower class market The availability of various access points allow internet usage to cascade through the lower class market

ISP used at home Source: Nielsen Media Index Dial-up / Narrowband - Prepaid - Postpaid Pay per Surf Broadband - DSL - Cable internet TOTAL URBAN METRO % %

The internet serves as a social outlet for most users Source: Nielsen Media Index FEATURES USED Use of www / internet Purchase Online News Employment Opportunities Travel/Weather Download Music/MP3 Sports Academic Research Personal Research Email Online Banking Chat Games Business Info Health Info Cinema listings/Events METRO

Radio Television Print OLD TECHNOLOGY

Age of Information Age of Empowerment

Email Blogs Podcasting MP3 Text Messaging Uploading Videos Downloading Videos U-tube Google Yahoo Messenger Multiply Instant research Shopping on line VIEW MOVIES VIRTUAL TOURS

What does new technology means for the traditional media?