By Bong R. Osorio
“The share of Out-of-Home (OOH) spends in total media spends in 2018nwill be 11 to 12 percent, the ratio between traditional and digital OOH will be 78:22 and price inflation based on 2017 will be 8 to 10 percent, and overall OOH growth will be at 12 percent,” Vinay Goel, General Manager of Posterscope Philippines, a Dentsu Aegis Network company, reports in a recent media outlook forum held in Fairmont Hotel, Makati City.
Goel’s forecast was anchored on the OOH spending total of PHP 21.2 billion in 2017, which splits to billboard (65 percent), Transit (13 percent), Digital (13 percent) and Ambient (9 percent). Spending is Metro Manila centric (70 percent), followed by Luzon (11 percent), Visayas (10 percent) and Mindanao (9 percent).
OOH usage is highest among the banking, finance and insurance companies (21 percent) followed by real estate (16 percent), quick service restaurants (13 percent), retail malls, supermarkets (10 percent) and apparel, fashion ad textile (9 percent). The balance is divided among food and beverage, consumer electronics, automobile and accessories, communication and telecom, hospitality, travel and tourism, and alcoholic drinks.
Goel states, “ Evolvement of connected and smart cities, with urban fragmentation and Internet of everything will drive the future of OOH. Communication based on data, location and emotion will define new way of messaging and connecting with consumers. In the future of where there will be Internet of things, the OOH’s ecosystem will be redefined to Outernet.”
To understand better the OOH business in the country, Goel shares the following background data based from various sources, including research data culled from 3,000 Filipino respondents covering 28 OOH media formats and using online OOH creative optimization tool and monitoring.
GROWTH OF VEHICLES
Vehicle sales grew 16.7 percent in the first eight months of the year, based on data from automotive and truck manufacturers. And according to a joint report released by the Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) and Truck Manufacturers Association, the number of vehicles sold from January to August reached 268,424 compared with 229,919 units in the same period a year ago. With 417,356, vehicles sold in 2016, the industry has reason to be bullish about reaching its Vision 2020 of selling C500,000 units way before the target year.
Government data from the National Economic and Development Authority (NEDA) shows that the infrastructure spending of the Duterte administration in its first year represents 5.4 percent of Philippine Gross Domestic Product (GDP), the highest level since the Marcos era, when infrastructure expenditure was at 3.2 percent of the GDP. The spending will continue as the Duterte administration unveiled plans for big ticket infra projects like the Mega Manila Subway, NLEX-SLEX Connector road and the Unified Common Station
OOH and DINING
Eating out is no longer reserved for special occasions. In fact, consumers in Metro Manila eat out of home 42 times in a month or roughly twice a day. Respondents to a recent survey indicate that lunch and mid-afternoon snacks are their favorite out-of-home fares. And based on Neilsen Food Reports 2017, the Top 5 OOH Dining Channels are: Quick service restaurants, commercial stores, neighborhood bakeries, neighborhood eateries, and doughnut shops.
OOH ADVERTISING GLOBAL
OOH is reaching over 90 percent of the population every week. OOH can launch products, drive awareness and trial, and shift perception. It can build brands, and the confidence and trust that should go with brands. Eighty-three (83) percent of people recall seeing OOH advertising within 30 minutes of reaching POS. With the OOH ecosystem evolving dramatically, global OOH billings currently totals USD 36 billion. Such growth was fueled by exciting new product propositions such as location-based, plus dynamic digital solutions.
OOH IS BEOND BILLBOARDS IN THE PHILIPPINES
The highly cluttered OOH landscape in the country has a size of PHP 21.2 Billion or USD 440 Million. Seventy (70) percent of investment in OOH is Metro Manila centric. It is the second biggest advertising media after television in terms of spending in reach.
Digital OOH is growing, and so is the ambient environment. Billboards continue to drive the OOH market with multiple formats and require long-term bookings. Public transports remain the key mode of daily commute. Based on a recent Rappler report, there are 23,000 buses, 36,000 taxis, 217,000 jeepneys and 90 tricycles.
OTHER QUICK FACTS ON OOH
In 2016, the total motor vehicles in Metro Manila has already peaked at 3.1 million. Our daytime (road) population is 16 million. Source: LTO
Metro Manila has only 1,032 kilometers of roads or 3.5 percent of the total 39,370 kilometers of roads nationwide. The National Capital Region has only one kilometer of road per 482 vehicles. Source: LTO
The traffic demand in Metro Manila is at 16.8 million trips. 69 percent of these total trips are done using public transport yet only 22 percent of the road space is occupied by public vehicles. The other 78 percent of road space is taken by private vehicles.
Average one-way commuting and traveling time in the Philippines spans 48 minutes before people reach their destination.
In Metro Manila 80 percent of road space is occupied with private vehicles whereas 80 percent of commuters use public transport for their day to day travel
OOH is not a media, it’s an environment and an ecosystem which a consumer goes through on their journey for path to purchase.
Based on researches and data, after seeing OOH 56 percent of millennials gains trust after seeing OOH and 58 percent tends to take action after encountering OOH.
Digital market place platforms like Honestbee, Lazada, Uber and Grab, are using OOH to communicate and create awareness among consumers.
Posterscope is the world’s leading Out-of-Home Communications agency. With billings in excess of $3 billion, it has over 1100+ people in 60 offices located in 34 countries worldwide. It aims to continually build understanding of the role of Out-of-Home in the connected economy and make Out-of-Home campaigns easy and accountable for our customers to execute.