Social Media Advertising - Philippines

Philippines

Highlights

In the Philippines, ad spending in the Social Media Advertising market market is projected to reach US$592.70m in 2024.
The ad spending in this market is expected to demonstrate an annual growth rate (CAGR 2024-2030) of 10.68%, leading to a projected market volume of US$1.09bn by 2030.
In a global context, the majority of ad spending will be generated China, with an anticipated amount of US$84.65bn in 2024.
Within the Social Media Advertising market market in the Philippines, it is expected that 66% of total ad spending will be generated through mobile by 2030.
Furthermore, the number of users in the Social Media Advertising market market in the Philippines is projected to reach 102.1m users by 2030.
The Philippines is witnessing a surge in social media advertising, driven by increased digital engagement among its young, tech-savvy population.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Social Media Advertising market in Philippines is experiencing significant growth and development.

Customer preferences: Customers in the Philippines are increasingly turning to social media platforms for their advertising needs. With a large and active user base on platforms like Facebook, Instagram, and Twitter, businesses are recognizing the potential of social media advertising to reach their target audience effectively. The ability to target specific demographics, engage with customers through interactive content, and measure the success of campaigns in real-time are all factors that make social media advertising appealing to customers in the Philippines.

Trends in the market: One of the key trends in the Social Media Advertising market in Philippines is the increasing use of influencer marketing. Influencers, who have a large following on social media platforms, are being utilized by businesses to promote their products or services. This form of advertising is seen as more authentic and relatable to customers, as influencers are often seen as trusted sources of information. As a result, businesses are allocating a significant portion of their advertising budgets towards influencer marketing campaigns. Another trend in the market is the rise of video content. With the popularity of platforms like YouTube and TikTok, businesses are recognizing the power of video in capturing the attention of customers. Short, engaging videos are being used to create brand awareness, showcase products, and tell compelling stories. The ability to share videos across multiple social media platforms further amplifies their reach and impact.

Local special circumstances: One of the unique aspects of the Social Media Advertising market in Philippines is the high mobile penetration rate. With a large percentage of the population accessing social media platforms through their smartphones, businesses are tailoring their advertising strategies to mobile users. Mobile-friendly ad formats, such as vertical videos and interactive ads, are being utilized to ensure an optimal viewing experience on mobile devices.

Underlying macroeconomic factors: The growing Social Media Advertising market in Philippines can be attributed to several underlying macroeconomic factors. Firstly, the country has a young and tech-savvy population, which is increasingly connected to the internet and active on social media platforms. This provides a large and engaged audience for businesses to target with their advertising campaigns. Secondly, the rise of e-commerce in the Philippines has created new opportunities for businesses to advertise their products and services. With the convenience of online shopping, customers are turning to social media platforms to discover and purchase products. This has led to an increase in the demand for social media advertising from businesses looking to capture the attention of online shoppers. In conclusion, the Social Media Advertising market in Philippines is experiencing growth and development due to customer preferences for targeted and interactive advertising on social media platforms. The rise of influencer marketing and video content, along with the high mobile penetration rate, are key trends in the market. The underlying macroeconomic factors of a young and tech-savvy population, as well as the growth of e-commerce, are driving the demand for social media advertising in the Philippines.

Data coverage:

Data encompasses enterprises (B2B). Figures are based on social media advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers social media advertising generated by social networks or business networks such as Facebook, Tiktok, Instragram, Pinterest, and LinkedIn.

Modeling approach:

A combined top-down and bottom-up approach determines the market size. Starting with the top-down approach, we calculate global social media advertising by aggregating revenues from key players (Meta Platforms (Facebook and Instagram), ByteDance (Tiktok and Douyin), Twitter, Snapchat, and Microsoft (LinkedIn)). Followed by the bottom-up approach, we justify global, country, and region results using web traffic and the number of app downloads. Lastly, we distribute the results to each country individually with relevant indicators such as GDP, internet users, social media users, and digital consumer spending by country.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market. For instance, the S-curve function is well suited to forecast digital products due to the non-linear growth of technology adoption, whereas exponential trend smoothing (ETS) is more suited for projecting steady growth in traditional advertising markets.

Additional notes:

Data is modeled using current exchange rates. The impacts of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice per year in case market dynamics change.