PHL Internet users now 38 million, two-thirds under 30 –IMMAP

According to the latest information from the Internet and Mobile Marketing Association of the Philippines (IMMAP), close to half of the Philippine population is now online.

 

The number of Philippine Internet users as of mid-2014 is now at 38 million out of a population of 100 million, according to IMMAP, and may still be expected to increase dramatically because of the falling cost of both Internet access and devices. 

 

It is also estimated that about two-thirds of Internet users are below 30 years old.

 

Social media and the mobile web

 

In September 2014 alone, some 22 million Pinoys accessed their Facebook accounts via smartphone or tablet in the Philippines—mostly on Android phones, according to IMMAP president Michael Palacios.

 

He explained that the Internet is now all about the mobile web, with a large percentage of online buying now being conducted via smartphones. 

 

However, smartphone penetration in the Philippines is still a bit slow, compared to other Southeast Asian countries.

 

Narrowing the gap

 

Despite the glaring gaps between sevices and products—which local companies are still struggling to fill up—Palacios remains optimistic about the near-term future of mobile marketing in the Philippines.

 

"We're absolutely closer to the beginning than to the end," Palacios said as he opened the IMMAP's 8th annual Internet and Mobile Marketing Summit, held at the Samsung Hall in SM Aura from September 25 to 26.

 

It's time for 'Digital Transformation'

 

"Digital Transformation" was the theme of the IMMAP Summit this year.

 

Palacios opened the summit with a talk on the importance of the theme and its relevance in today's business environment.

 

Quoting Altimeter Group analyst Brian Solis, Palacios said the formal definition of "digital transformation" is "The re-alignment of, or new investment in, technology and business models to more effectively engage digital consumers at every touchpoint in the customer experience life cycle."

 

But "a digital strategy is so much more than a website or a Facebook page," he stressed.

 

Put simply, Palacios explained that digital transformation is about creating services and products that are responsive, where the consumer's concerns are addressed in real-time.

 

The Southeast Asian e-commerce boom

 

Paul Srivorakul, group CEO of ACommerce and co-founder and executive chairman of Ardent Capital, also took the stage to talk about how the e-commerce boom in Southeast Asia will affect the digital marketing environment.

 

Echoing Palacios, Srivorakul said that "there's a lot of demand, but not enough entrepreneurs."

Problems with delivery: Why 'daily deals' still rule
 

One of the difficulties faced by the e-commerce industry is a problem with infrastructure: after a consumer clicks 'buy' online, there's a long wait before they receive the product. This is why "daily deal businesses" that have you print vouchers and then pick up the product afterwards, are still strong in the Philippines.

 

Srivorakul believes that once delivery is improved, e-commerce could probably increase from 1% of transactions to double-digits. It's projected that by 2018, e-commerce sales in Southeast Asia will reach $6 billion, with 65% of transactions starting online and finishing offline.

 

A digital lifestyle combined with continuous GDP growth and a strong youth market makes the Philippines the perfect digital storm, according to a 2014 report by Tigerclub Digital.

Smarter marketing through actionable data
 

According to Srivorakul, "E-commerce creates smarter marketing." The effects of ads can be seen in real-time, via statistics for views and clicks. Product promotion on websites can be modified in reaction to how well the ad is doing, and takes less than a day to arrange. "It's not just about big data, it's not just about smart data. it's actionable data," Srivorakul said.

 

Srivorakul concluded by saying that there is still less competition in the Southeast Asian market for e-commerce, but capital is available for any entrepreneurs interested in starting a business.

 

In a lot of areas, this means that large established companies are beginning to aggressively move in, but since the Philippines is an archipelago, any company that wants to come in needs to rely heavily on localizing their operations. — TJD, GMA News