Glitz, glamour mark opening of 17th Ad Congress in Cebu

CEBU CITY — The 17th Philippine Advertising Congress opened here yesterday amidst glitz, glamour and fanfare in rites showcasing the creativity and imagination of the industry.

But the upbeat mood was not enough to mask the air of uncertainty pervading the industry, with some key advertising executives wary about prospects next year.

This year’s congress, which adopted the theme "Target Market: Asintado sa Pinoy Ngayon," focuses on today’s Filipino consumers — who they are, what they have become, how they have changed, or how they have stayed the same.

The theme could not have come at a more opportune time, especially now that advertisers want to spend their budgets more wisely, faced with the reality of declining revenues and consequently, reduced budgets.

A musical, featuring stage actors Robert Sena and Jenine Desiderio, opened the congress which was attended by more than 2,000 participants from the advertising, media, marketing, and business sectors.

The musical play, entitled Ungol, Sigaw ng mga Walang Tinig, was a grand presentation of Filipino talent and creativity, which wowed no less than the keynote speaker, Ayala Corp. president and chief executive officer Jaime Augusto Zobel de Ayala.

Advertising Board of the Philippines executive director Oscar Valenzuela said that next year’s prospects for the advertising industry is easily one big question mark.

In fact, he said that there is already a noticeable shift from 30-second to 15-second advertisements, even as some advertisers have decided to use the same materials rather than spend for new production.

Arnedo Lucas, managing director of RoadRunner Network Inc. radio television division which is said to be the country’s biggest post-production house, said everything will depend on the amount consumers are willing to spend as well as the willingness on the part of advertisers to outrun competition.

"But based on our experience, there has been a lot of timidity on the part of advertisers," he said.

He says there has been a general decline in advertising spending. Roadrunner for instance, which derives 70 percent of its revenues from the advertising industry, expects an eight percent decline in gross revenues next year. The company gets the rest of its income from the film industry and is credited for being part of quality films such as Muro-Ami and the upcoming American Adobo.

Pinky Abellada, vice president of AB Communications and director of the Association of Accredited Advertising Agencies (4As), said that because of the crisis, there is talk that next year, there will be a freeze in the media rates (print, radio, and television). "And of course, we welcome this," she said.

She noted that this year, the advertising industry forecasts that while money spent for advertising will increase to account for the 15 percent inflation rate, volumes will remain flat.

Abellada revealed that some advertising agencies have also reported that clients are willing to spend less for above-the-line media such as advertising and more for promotions and other marketing activities.

She also disclosed that some clients have also put on hold spending for advertising during the fourth quarter of this year, which normally accounts for 30 to 40 percent of the total. One of the reasons for this is that some advertisers spent a large part of their budget at the start of the year due to the bullish atmosphere following the installation of a new administration in January and the May elections.

Unfortunately, the increased spending was not able to produce results for the businesses concerned, both here and abroad, due mainly to reduced consumer purchasing power.

Traditionally, advertisers conduct their planning and budgeting exercises during the last quarter, but there are those who have delayed the activity and instead opted to adopt a wait-and-see attitude.

"But we still remain hopeful. Many advertisers are planning to maintain their level of spending next year in order to continue to be present in the minds of consumers. But we expect budgets to be reviewed middle of next year," Abellada said.

And she projects that the telecommunications and personal care sectors to remain as the leaders as far as advertising spending is concerned.

Branding, she says, will also play a key role in these trying times. Abellada cited an industry survey which showed that during recession, consumers would rather spend on quality products with powerful brands.

Meanwhile, Susan Dimacali of McCann-Erickson Phils. Inc., described 2001 as a dramatic year, even as she noted that the industry remains optimistic and hopeful. Dimacali is also the chairman of the Advertising Board of the Philippines. For his part, overall 17th PAC Congress chairman Pedro Dy-Liacco said that during these difficult times, there is a greater need to sustain the competitive spirit instead of dampening entrepreneurship.

"There is a need to sharpen communication efforts and focus on target markets because this way, we won’t be wasting precious marketing resources," Dy-Liacco, vice president for communications of Nestle Phils., said.

He said they recognize the need to always delight and "romance" the consumer.

"Our brands must have a never-ending love affair with the consumer. We believe that the saying ‘Out of mind, out of heart’ applies in this case," he added.

Danny Gozo, assistant director for communications of Ayala. Corp., believes that advertising spending next year will be a little flat although the traditional big spenders will continue to lead the pack.

Globe Telecom, an Ayala Corp. subsidiary, is expected to continue its level of advertising spending, or even increase its budget for next year, this according to Zobel de Ayala.