Poll spending spells profit for businesses

CEBU, Philippines - Aside from political importance, election in the Philippines has also carved for itself an important role in perking up the country’s local economy, making it an event that companies, both big and small, look forward to.

Bank economist Prakriti Sofat, in her research note titled, “Elections to Boost Growth,” said in a national report that election related spending is expected to boost the Philippine economy this year.

In an interview, Justin Timazos of Clavano printers said business of the company perked up since last month with additional income from campaign paper materials placed by local candidates. This is in addition to the usual orders of the publication company.

An attendant of E.C Print Systems who requested anonymity confirmed that the company has also been earning additional business from campaign stickers.

Meanwhile, Atty. Cynthia Barte, Vice president for marketing of Radyo Mo Nationwide (RMN) Network, said RMN’s Cebu station, dyHP, has been receiving election-related advertisements since November last year.

“Even before the campaign period for national candidates started, we already aired advocacies of our presidential candidates. We expect (more) to come until the election (on May 10,)” she told The Freeman.

Barte said she expected average monthly sales of dyHP in March, April and May to increase by 40-percent due to advertisements of local candidates. Meanwhile, iFM manager Jose Raul Credo said election-related revenues comprise about 30-percent of the average monthly income of iFM.

Credo said the income of iFM has trickled down to its employees in the form of commissions given to those who were able to get the advertisers. For dyHP and the entire RMN family, the additional business of the company due to the election fever has resulted in incentives to the employees. A good example is the increase in salary the network employees have recently received.

Meanwhile, reports said the growth this year would be fueled by election-related spending, among others.

The huge spending of national candidates on television commercials way before the start of the official campaign period has practically changed the political landscape as the May 10, 2010 national and local elections approach.

“Bulk of the resources of national candidates especially the presidentiables and vice presidentiables are poured into crafting effective television and radio ads and on placing this especially during primetime,” said Doris Mongaya, managing director of the Cebu-based PRWorks Inc.

The success of the television advertisements of Sen. Manny Villar in achieving a statistical tie with erstwhile survey leader Sen. Noynoy Aquino has pushed the other political camps to also invest more in television advertisements for national exposure.

“Although expensive, television ads had proven effective in persuading huge sections of the public,” she said. Various reports on ad spending showed that this has reached billions of pesos unlike past presidential campaigns.