Because of rising mobile phone penetration rate: Advertising landscape changing in Phl

MANILA, Philippines - The top executive of Ayala-controlled Globe Telecom Inc. sees mobile phones changing the landscape of traditional advertising in the Philippines on the back of the country’s rising mobile phone penetration rate.

In his keynote address during the 2012 Mobile Marketing Conference of the Internet and Mobile Marketing Association of the Philippines (IMMAP), Globe president and chief executive officer Ernest Cu said the company is bullish about the prospects of the growing ubiquity of mobile phones.

Cu cited the strong potential of mobile phone as an effective medium for brands to reach target audiences.             

He pointed out that the mobile phone has clearly taken great prominence in the human value chain.

 He cited Time Magazine’s Mobility Poll that revealed that 68 percent of the 5,000 respondents across eight countries sleep with their mobile phones next to them while 66 percent would rather take their mobile phones to work instead of lunch.

Cu revealed that about nine out of 10 people in the Philippines own mobile phones, putting mobile phone penetration at its highest peak compared to any other form of medium such as TV.

“Indeed, mobile is the way to go to connect with and engage today’s consumers, as well as to create a rich consumer experience that goes beyond traditional marketing,” Cu stressed. 

The use of mobile as a channel to communicate with a target market, he explained, pushes brand activation to the limits of a consumer’s imagination, citing augmented reality as an effective platform to bring advertising campaigns to life.

He added that mobile advertising opens creative corridors for dynamic and more compelling content, capitalizing on strong visual stimulation to entice consumers further.

Cu also said the interactivity that mobile encourages, allowing consumers to instantly send feedback, making the retail experience more relevant and meaningful.

“Mobile technology has definitely changed the way brands talk to their consumers. Because it’s so personal and powerful, it enables the unique efficiency of reaching out to very precise target markets with mobile advertising-driven campaigns hinging on the capability to profile customers and touch them directly,” Cu said.

Globe tied up with Out There Media last 2010 to launch its own mobile advertising platform My Rewards, My Globe Plus that has now over two million opt-in subscribers.

He pointed out that top consumer brands such as McDonald’s, Clear and Sunsilk have effectively used the platform to engage and establish affinity with their target consumers.

Globe is embarking on a massive $90-million information technology and systems transformation that would monitor demographics, usage, product subscriptions, transactions, bill payment and behavior of its subscribers.

“As soon as we see that a customer has the propensity to top up load, to roam, or to subscribe to a promo on any given day, we can push the relevant service in an instant, to the right customer, at the right time,” Cu shared.

The Ayala-controlled company is set to complete its $700-million network upgrade and transformation program within the first quarter of the year.