Market Trends of Philippines OOH And DOOH Industry
Ongoing Shift Towards Digital Advertising is expected to boost the Market Growth
- In the Philippines' Out-of-Home Advertising market, a prominent trend is the swift embrace of digital technologies. Major cities are witnessing a surge in digital billboards, LED screens, and interactive displays, presenting advertisers with novel avenues to connect with their audiences. This shift is primarily fueled by technological strides, which have not only made digital advertising more efficient but also cost-effective.
- Digital marketing has seen significant growth in the Philippines, cementing its status as a cornerstone of marketing strategies. The country's rapid adoption of internet and social media platforms has opened up lucrative avenues for businesses.
- The Philippines' young and tech-savvy population is significantly driving the adoption of digital technologies in advertising. This demographic trend, combined with favorable macroeconomic factors, is creating an optimal environment for the growth of the Out-of-Home Advertising market in the Philippines.
- According to GSMA Intelligence, in the first half of 2023, Manila, Philippines, boasted a median 5G download speed of 135.51 Mbps, with an average upload speed of 11.5 Mbps. The nation introduced 5G technology in 2019, extending its coverage to nearly 100 cities.
- The Philippines is experiencing a consistent rise in its urban population. Data from the World Bank revealed that the country's urbanization rate climbed from 47% in 2020 to 48% by 2023. With ongoing advancements in the nation, this trend is projected to continue, drawing an expanding audience to the DOOH market.
Understand The Key Trends Shaping This Market
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Transit to Witness Significant Growth
- The rising appetite for digital travel content has spurred the adoption of interactive ads across diverse platforms like kiosks, billboards, and signboards. This shift significantly bolsters transportation media revenues. Consequently, consumer engagement behaviors have evolved across all transportation modes, presenting companies with strategic opportunities to enhance brand recognition.
- In August 2023, Location Media Xchange, the global independent advertising technology company and supply-side-platform, has partnered with Digichive Philippines Corporation (DPC), the exclusive advertising concessionaire for Ninoy Aquino International Airport (NAIA) Terminals, Clark Lipad International, Bacolod-Silay airport and Kalibo International Airport. The partnership will enable the activation of campaigns that are programmatic guaranteed as well as open exchange and private marketplace deals (PMP).
- According to a study conducted by JCDecaux, consumers perceive airport advertising as more prestigious and valuable compared to other advertising platforms. This perception directly correlates with an elevated value attributed to the showcased products. The country is witnessing a growth in its domestic tourism, which offer an opportunity for market players to connect with their targeted audience. According to PSA (Philippines), in 2023, domestic tourism spending in the Philippines surged to around PHP 2.67 trillion, which was around PHP 1.54 trillion in 2022.
- Moreover, the government is involved in strenthening the transit infrastructure of the coyntry. For instance, in October 2023, the Philippine government extended invitations to airport operators and investors to engage in a significant project. This venture is set to unfold through a public-private partnership. The USD14 billion New Manila International Airport in Bulacan is a greenfield PPP initiative. It's designed to accommodate a staggering 200 million passengers each year, featuring blueprints for four parallel runways.
