McCann's Villar: Challenges facing local ad biz

MCCANN   MARKET APPROACH  

Philippines - Rise in demand of the once urban-centric products and services, coupled with the information boom in the Philippines has forced marketers to rethink their strategies and go-to-market approaches.

Nandy Villar (pictured), president and COO, McCann Worldgroup Philippines, in an interview to Marketing said unlike other neighbouring countries, Philippines has two powerful economic drivers: its Overseas Filipino Workers (OFWs) and the BPO/call center workforce. Both significantly contribute to the GDP and consumer spending.

Dollar remittances from OFWs are developing the middle class, making the Philippines less bottom-heavy socio-economically. Similarly, BPOs provide employment to young adults which represent the median age of the population (around 23 years old).

These directly affect consumer behavior and purchasing power, making the Philippines a dynamically growing set of consumers.

"Therefore, resource allocation and prioritisation and the search for useful metrics are front burner concerns of clients today, translating into new expectations from agencies," Villar said. And McCann is dealing with the change by taking the initiative in terms of compensation models and performance measures. 

"In terms of value to clients, the breadth of our competencies in advertising, digital, shopper marketing, media, content development, healthcare and other specialties means depth of ideas and solutions that enable brands to impact in the marketplace," he said.

Is he worried about the global economic crisis' impact on the market? No, is the answer. 

"The Philippine economy is looking up. All indicators show that we are poised to grow despite the volatility of the economies in the West," he said adding that good ideas and business-building solutions will always be in currency.

McCann WorldGroup had a successful 2011 with the agency bagging creative remits for Enervon, Red Ribbon, Mentos, BPI-Globe BanKo, Nescafe Dolce Gusto for McCann Erickson.

Digital assignments came from brands such as Coca-Cola, Nescafe, Kit Kat, Multiply, Bank of the Philippine Islands, iamninoy, San Miguel, Unilever Master & Eskinol, Department of Health, AIDS Society of the Philippines for MRM and projects from Unilab Biomedis, Roche, Westmont Appebon & Alnix for McCann Healthcare.

Momentum also netted multi-channel shopper marketing initiatives for Coca-Cola, Ipanema, Philippine Business for Social Progress & Unilever Eskinol and  UM grew its media AOR clientele, with the inclusion of Microsoft & American Eye Center, while bagging additional projects from existing clients PT Mayora (Beng Beng Choco & Fres).

"For as long as we keep the compass on consumer understanding, and we collaborate tightly with our clients in  delivering brand value to the market, we should not find ourselves not being excited about times ahead," Villar said.

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