Social commerce or purchases made through social media platforms in the Philippines will surge more than 300 percent to $2.75 billion in five years, from $682 million in 2022, findings of a study conducted by Entravision, an advertising, media, adtech and commerce solutions company.
Pieter Jan de Kroon, Entravision president for Asia-Pacific, in a press briefing yesterday said the company sees a lot of potential for growth in the Philippines for electronic commerce in general with its over 100 million population of which 85 million of are connected or using the internet through mostly due to smartphones.
De Kroon said gross merchandise value or the value of the total products bought by Filipinos online stood at $12.3 billion in 2022, and will nearly double to $22.5 billion in 2027, or an annual a growth rate of more than 12 percent.
De Kroon said social commerce has a huge potential in the Philippines where people use social media platforms like Twitter, TikTok and Meta to discover and buy products.
“It’s more convenient. Pricing is better and a variety of products is (available),” De Kroon said.
De Kroon said advertising spend would grow at a very fast rate using digital channels to reach more audience and fulfill these to purchases.
He said based on Entravision, the total ad spend in the Philippines currently is close to $1.8 billion f which $565 million is on digital.
“Digital advertising spend is the component that is growing the fastest and it’s double digit growth year on year,” De Kroon said, adding this eats away the share of traditional media. – Irma Isip
