PHL consumers prefer tailor-made online ads

Luis Anthony Oliveros, a professional blogger, is one who could be deemed as a social media denizen, who spends an average of 15 hours on social networking sites. In the course of his online wandering, he encounters online ads which seem to pop right out of the page and talk to him directly. Oliveros, a music afficionado, said he recently found an ad on Facebook for a concert ticket deal in one of the group-buying sites in the country. "When I saw it, I got really interested because I was really looking to buy a ticket for that concert," he said in an interview. These promotions, usually called "targeted advertisements," are served by taking into account data which users have provided in social networking sites, or through their previous purchases online, and are seeing increased use by advertisers to reach their target audiences online. Sites like e-commerce hub Amazon, for instance, takes a record of the user's previous purchases on their sites and use it in serving particular ads whenever a user logs on to the service. Oliveros said he didn't find it disturbing that the ad knew what he was particularly interested in, adding that they're "pretty useful" with finding new discount deals. He is just one of the majority of Filipino Internet users (83 percent) who are interested in ads specifically targeted at them, saying it makes their lives easier, according to a recent report by market research firm Nielsen. In contrast, the world average is pegged at only 58 percent, while the Southeast Asian figure is set at 74 percent. Social dimension of ads Interestingly, the Nielsen survey also pointed out that users now prefer ads with a "social dimension" attached to it (80 percent), such as when an ad shows which of their friends have liked or followed a certain brand. In the same manner, the study showed that at least 73 percent of Southeast Asians surveyed said they are either "highly" or "somewhat" influenced by ads posted on social networking sites. "As social media increasingly becomes a mainstream activity throughout the region, brands have been quick to get on board with the practice of better understanding and connecting with their consumers when it comes to their advertising strategies, engagement and conversion," said David Webb of Neilsen's advertising solutions. These firms' efforts in online marketing seem to be paying off, at least according to data which the study revealed, showing how 75 percent of Filipino users have either "liked" or "followed" a brand in any of the social networking sites. This figure is significantly higher than the 52-percent global average, and six points higher than the regional average. Most trusting of online opinion... Earlier, Nielsen reported that Filipinos are also the most trusting of opinion posted online, with 61 percent saying they trust consumer-generated media, or views posted by their friends and connections on Facebook and Twitter, among others. "Today's users of social networking sites in Southeast Asia are increasingly turning to social networking platforms to seek advice or recommendations, get discounts or special offers, or actively recommend products or brands," Webb said. "As local consumers increase in their experience of using the Internet, and their levels of confidence and sophistication, so too do they value and trust online content as a source of information," he added. The Philippines has been dubbed the "social networking capital of the world" by finance news site 24/7 Wall St, with 9 out of 10 online Pinoys currently using Facebook and other social networking sites. Analytics firm Socialbakers.com pegs the total number of Facebook users in the Philippines at about 26 million, or roughly 88 percent of its total online population. In the recent Yahoo!-Nielsen Net Index, use of social media by online Filipinos spiked from only 50 percent in 2010 to at least 80 percent in 2011. ...but not confident with online transactions The 2011 Net Index also revealed, however, that since the IT and banking infrastructure in the Philippines are still evolving, most Filipino consumers are not too confident with transacting online. In fact, transacting online as a part of Filipinos' Internet activities went from 3 percent in 2010 to just 1 percent in 2011, the study said, noting how consumers are still comfortable with dealing with vendors on an interpersonal basis. More than half of consumers, it added, prefer paying for their transactions in person, where the element of "kaliwaan" or an exchange of hands comes into play. Still, the report pointed out, the use of credit card (36 percent) is an up and coming trend among Filipino consumers, as well as money transfer via ATM or bank deposits (10 percent). — RSJ/TJD, GMA News