Economy
Even before the COVID-19 pandemic, which led to strict lockdowns nationwide, the Philippine economy was already on a slight decline from 2017 to 2019. The growing population, inflation and the less than stellar performance of trade, agriculture, manufacturing, and services sector contributed to the fluctuation in economic growth.
Despite the economic contraction, the country was still among the fastest growing in Asia, behind India, China, and Vietnam. From 6.9% in 2016, the growth rate dropped to 6.7% in 2017, then 6.2% in 2018. It further fell to 6% in 2019, until it plunged to -9.5% the first year of the pandemic in 2020.
During this period, the administration of Rodrigo Duterte was focused on infrastructure development through its “Build Build Build” program, with the aim of enhancing connectivity, reducing logistic costs, and attracting more investments.
However, a review by think-tank IBON Foundation found that instead of catering to the country’s production sectors and creating meaningful jobs for Filipinos or providing sustainable incomes for the poor majority, government poured its effort in boosting investor confidence and opportunities for corporations and contracting countries.
Dependent on remittances
The robust remittances from overseas workers, even when this hit a low of Php 134.77 billion (US$2.803 billion) in 2020, helped to sustain the needs of households dependent on these monies. Remittances have since recovered but have yet to exceed the pre-pandemic (2019) level of Php 210.40 billion (US$3.778 billion), as of 2022.
The economy was able to bounce back in 2021, with a 5.6% growth rate following ramped up vaccination drives that enabled the opening of more economic activities. Construction, manufacturing, wholesale and retail trade, and motor vehicle/motorcycle repair were main contributors to the economy.
Bouncing back
It did even better in 2022 after all the restrictions imposed at the height of the pandemic were lifted. The Philippine economy grew by 7.6%. Construction, transportation, accommodation and food service were the sub-sectors that pushed this growth.
The economic system in the Philippines plays a significant role in shaping the media landscape, particularly in terms of ownership structure and influence. The Philippines has been characterized by a concentration of media ownership among a few wealthy families and business groups.
Media ties to business
Large corporations with interests in diverse sectors may own media organizations, leading to concerns about corporate influence on media content and a potential bias in reporting to protect business interests. Furthermore, the economic elite in the Philippines often have close ties to political figures, which results in media outlets being used to promote specific political agendas or to attack opponents, affecting the objectivity and independence of journalism.
Traditional revenue sources for media outlets, such as advertising and circulation, have faced challenges due to changes in consumer behavior and the rise of digital platforms.
Ad spending on the decline
Some outlets are exploring digital subscriptions and alternative revenue models to sustain operations. Media organizations are navigating the digital transformation, with online platforms becoming increasingly important as the shift to digital media presents opportunities for wider audience reach.
The economic impact of the pandemic has added to the financial strain faced by media organizations. Some media outlets also faced financial challenges, leading to cost-cutting measures, layoffs, and closures, as what happened to ABS-CBN.
Traditional to online
Changes in the funding of news media organizations in the Philippines were seen in the past years. Many news organizations have been adapting to the digital age, shifting from traditional print or broadcast models to online platforms.
Digital advertising and subscriptions have become increasingly important revenue sources, which require readers to pay for access to premium content. An example would be the Manila Times Online which has adopted a paywall to access their website.
With the shift in media platforms, advertising revenues have been scaled down. With television and print being overtaken by online sources of news and entertainment, advertising rates are significantly lower despite a wider audience reach.
Revenue impact of digital age
When TV lorded it over all media platforms, rate cards for prime time programs would reach half-a million pesos on average for a 30-second ad placement. Now, with more people turning to social media as the source of information and entertainment, the cost of ads on Facebook, for example, ranges from Php10,445 (US$187) to Php 41,780 (US$751) per month depending on the clicks targeted by a brand. The more clicks, the higher the conversion (purchase of product or service).
Political ad placements on all media platforms help push advertising revenues in election years (2019 and 2022) especially during a presidential contest. Ad revenues dropped between 9% to 31% after the 2022 national elections.
Sources
Advertising Row website, How much does a TV commercial cost in the Philippines? (May 23, 2022)
Accessed on Jan. 4, 2024
Senate of the Philippines official website, 2021 Full-year Economic Report
Accessed on Jan. 4, 2024
Congressional Policy and Budget Research Department official website, FF2019-02: 2018 PHILIPPINE ECONOMIC PERFORMANCE
Accessed on Jan. 4, 2024
Congressional Policy and Budget Research Department official website, FF2020-43: 2019 ECONOMIC PERFORMANCE OF THE PHILIPPINE REGIONS
Accessed on Jan. 4, 2024
Congressional Policy and Budget Research Department official website, FF2021-10: 2020 PHILIPPINE ECONOMIC PERFORMANCE
Accessed on Jan. 4, 2024
Sicat, G. (2012). Worker remittances and the Philippine economy.
Accessed on Dec. 28, 2023
Senate of the Philippines official website, 2017 Full-year Economic Report
Accessed on Dec. 28, 2023
Guzman, R. (2021, July 25). What Build Build Build has delivered. IBON Foundation.
Accessed on Dec. 28, 2023
Bangko Sentral ng Pilipinas official website, Tab 12 Philippine Peso Per US Dollar Exchange Rate
Accessed on Jan. 4, 2024
Truelogic official website, Facebook Ads Cost In The Philippines: A Pricing Guide (July 2, 2022)
Accessed on Dec. 28, 2023