The State of Programmatic in the Philippines

The State of Programmatic in the Philippines

Programmatic advertising has entered its second decade and is on an exciting trajectory. The new technologies around artificial intelligence, privacy policies, data segmentation, etc. not only give marketers more opportunities but also provide a more engaging, personalized experience for consumers. 

As technology advances, programmatic advertising is also capturing a growing share of advertising spend. The total amount spent programmatically is expected to rise to US$127bn in 2020 and US$147bn in 2021, when 72% of digital media will be programmatic.

The Philippines’ Programmatic Landscape

More and more ad spend has moved online, and the programmatic processing of ad sales and execution continues to gain share because of the effectiveness and efficiency of programmatic models. Southeast Asia (SEA), is no exception with digital ad spend in the Philippines projected to reach US$638m in 2020. 

In recent years, Southeast Asia has seen a steady increase in the adoption of apps. An average smartphone user in SEA spends close to four hours a day using apps, 33% higher than mature markets such as the USA and Canada. And the Philippines aims to become Southeast Asia’s top creative economy by 2030, in sectors such as digital advertising, game development and animation.

Let’s look at some trends that are featured in programmatic advertising in the Philippines.

  • Mobile-first Approach

One of the major shifts that mobile marketers have witnessed is the mobile-first approach. As of 2019, there were approximately 74 million smartphone users in the Philippines. It is forecasted that by 2025, there will be around 90 million smartphone users in the country.

  • Ecommerce growth

Ecommerce revenue is growing as the number of mobile shoppers in the Philippines increases. In fact, revenue in the eCommerce market is projected to reach US$3,540m in 2020. 

  • Video continues to reign

With mobile users watching hours of video content every week on their phones, video ads continue to dominate. The unified experience of audio and visual elements give greater impact and appeal to audiences. It is estimated that 87% of internet users in the Philippines watch online video content for an average of 6.35 hours per week. 

  • The Importance of Creative Localization

Localization is essential for connecting with your target audience and making your ads more memorable in local markets. It helps to decrease the cultural and geographic barriers for new customers and expands your potential user base. 

At Aarki, our creative strategy is conceptualized with localization in mind. Samples of mobile ads presented below have been localized into Filipino to cater to that specific geographic market.


The Philippines’ Promising Programmatic Future

The growth of programmatic advertising is not expected to slow down anytime soon, and the Philippines is part of this trend. By using localization, video creative, and taking a mobile-first approach to your strategy, you will be able to capitalize on this growth and connect with your target audiences. 

If you are new to programmatic and want to target desired audiences, scale relevant ad creatives, and measure return on investment (ROI), your programmatic media buying strategies need to be data-driven and transparent. Don’t miss our white paper to learn more about programmatic advertising.

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Topics: Marketplace Insights, Industry News