An increasingly digital environment with such channels as the Internet and the mobile phone presents a whole new world of advertising and marketing opportunities for products and services. As Kent Wertime, Asia Pacific president of the advertising agency OgilvyOne Worldwide, the parent company of OgilvyOne Philippines, says, “digital marketing is the future of marketing. It won’t all happen overnight, but it’s already happening.”
In the Philippines, in particular, the use of digital channels has grown phenomenally during the past few years. There are now an estimated 18 million Internet users and over 50 million mobile phone subscribers in the country, although their digital marketing activity has so far been largely confined to posting ads in online communities and making use of social networking sites.
More and more, however, the country’s micro, small, and medium enterprises (MSMEs)—they constitute a whopping 99.6 percent of Philippine businesses—are beginning to see and appreciate the great cost savings that can be derived from doing digital marketing rather than traditional media marketing. These SMEs are, after all, precisely the sector that can’t come up with the big advertising budgets demanded by the print, TV, and billboard media.
According to Wertime, digital marketing can save businesspeople a lot of money because they only need to pay for their advertising on a “cost-per-action basis.” He explains: “There are lots of ways for people to purchase new media advertising, such as paying for it per registry, per click, or per sales. Even the simple act of sending e-mail is by itself a form of digital marketing, and it’s almost free.”
What’s more, he emphasizes, there is another very important intangible benefit from digital marketing on top of its much lower cost: instant feedback. “In traditional marketing, feedback could be had only after months,” he says. “With digital marketing, however, we can get responses in just a matter of minutes.”
In OgilvyOne’s experience, he says, adjustments could be made in an online marketing campaign just days after its release based on customer feedback.