Advertising industry shocked by ABS-CBN shutdown-Tycoons


MANILA, Philippines – Advertising and marketing tycoons stated on Thursday that the abrupt move of the National Telecommunication Commission left their industry astounded. Within the $3-billion sector, uncertainty is prevalent after the shut down of ABS-CBN.

Last May 5, the NTC acted upon the expired franchise of the said network. Upon the pressure of the Office of the Solicitor General, the quasi-judicial body released a cease and desist order.

Currently, the ABS-CBN has lost their broadcast lines through radio and television. However, they are continuing their operations through digital and online media.

Former chairman of the Advertising Board of the Philippines and the Association of Accredited Advertising Agencies-Philippines expressed his worry. He stated that these will have severe effects on the large-scale economy and the sector.

“The move was so sudden and everybody, more so, the large stakeholder entities, thinkers and planners were caught flatfooted,” said Villa.

He added, “The fast, furious and sudden scenario was unforeseen. In fact, I believe that the scenario should not have played as planned, because it was contrary and therefore, not according to the plan.”

Characterizing the state of the industry, he said, “At best, solutions now are mere palliatives with no immediate long-range plan in sight.”

Further damages

In the statement, he expounded, “ABS-CBN, being the largest broadcast network, also has the greatest marketing reach in the country.  The king of TV—ABS CBN—goes to the grave with the most reach.  A key factor for a media buy to be most cost-effective now goes down to the grave with its departure. This means too that the selection of an array of proven efficacy and reach becomes too narrow and ineffective.”

The CEO and managing partner of Organic Intelligence Consulting Inc. emphasized that this turn-around in TV makes drastic effects. He reiterated that Philippine entertainment is a predominantly TV-centric one.

He clarified, “How does it affect the industry? It takes away from them one of the major channels. In a mass market like the Philippines, by removing ABS-CBN, you are removing one major touch point that Filipinos access every day, and that has a direct impact on people whether you work in the industry or you’re just a regular citizen.”