When a social media platform gains popularity, it’s almost a guarantee that Filipinos will flock to it. Known as the Social Media Capital of the World, the Philippines was home to 84.45 million social media users in January 2023, around 72.5% of the country’s total population.
With numbers like that, it’s no wonder many local companies try to boost their social media presence, especially on Facebook. In fact, you can find 44.1% of brands setting up ads on the platform, which makes sense, given the amount of time Filipinos spend there.
As a marketer looking to expand your reach, leveraging social media is the way to go. If you’re still wondering about the effectiveness of social media advertising in the Philippines and its costs, look no further.
Here’s a guide on the impact and cost of social media advertising in the Philippines.
Factors that Impact Social Media Advertising Cost
Several aspects can affect the overall social media advertising cost in the Philippines. These include:
A good chunk of the Philippines’ population is active on social media, but not all of them will be receptive to your message. Hence, it is imperative to target the right audience to maximize your ad budget.
With that said, ad costs will vary depending on the target audience. According to Lebesgue, the average CPM for Facebook ads targeting women is $6.01 (PHP340.16) and $4.92 (PHP278.47) for men. So targeting a more niche audience, such as makeup enthusiasts aged 30 and above, may result in higher costs but more conversions.
Understanding local preferences, behaviors, and demographics is key to optimizing ad spending.
How you present your ad isn’t just a matter of creative choices but also impacts your expenses. Different formats have varying production costs, and their effectiveness can influence the campaign’s overall cost.
Video ads, for example, might engage users more effectively but could be pricier to produce. A good example is Jollibee’s Kwentong Jollibee series, which boasts high production values. Alternatively, you can resort to memes for engagement, which ridesharing brand Angkas does regularly.
Social media platforms offer diverse bidding strategies, each with its cost implications. Cost-per-click (CPC), cost-per-impression (CPM), and cost-per-action (CPA) are popular models.
Choosing the right strategy depends on your campaign objectives. CPM may be preferable for driving website traffic, while CPA and CPC might be more suitable for conversions.
Time and Day of Posting
Timing is everything in social media advertising. The day and time you run your ads can significantly influence performance. Posting on peak hours, days, or holidays is a good strategy to get more eyes on your ad. But guess what? Your competitors are likely following the same strategy as well. And with more competition comes more costs.
Platform of Choice
Different platforms have distinct user demographics and engagement levels. Understanding where your audience spends the most time can help you allocate your budget wisely. In the Philippines, Facebook remains dominant, but platforms like Instagram and TikTok are also popular.
How Much Does Social Media Advertising Cost in the Philippines?
Now that you know the factors that affect social media advertising costs in the Philippines, what exactly do the numbers look like? Here’s what you may expect to spend on each platform.
Take note that the exchange rate used here is $1 = PHP56.6.
Facebook Ads Cost
Facebook remains the leading platform for local brands to put up their ads. At the start of 2023, the site’s ad reach in the Philippines was equivalent to 69% of the total population.
Below, you can find the breakdown for CPC and CPM spending. For more in-depth information, you can check out our article here.
Instagram Ads Cost
Instagram was the 3rd most used platform in the Philippines as of January 2023 (not including Facebook Messenger), with the platform’s ad reach being around 15.1% of the total population.
In a separate study by Oosga, it is shown that the platform has a larger share of female users (62.4%) vs males (37.6%). With its largely image- and video-based content, it emphasizes the importance of creating aesthetically pleasing and engaging material to cater to its audience’s preferences and maintain high user engagement levels.
|PHP11.32 – PHP113,20 ($0.20 – $2.00)
LinkedIn Ads Cost
LinkedIn is a networking and job-hunting platform, perfect if your business caters to these markets. As the main hub of Filipino professionals, it’s no surprise that its ad reach in the country was equivalent to about 15.3% of the local internet user base in January 2023.
As it is a network for business professionals, LinkedIn is a great platform for B2B ads.
Pinterest Ads Cost
Pinterest focuses on sharing information via images, GIFs, and short videos, with ads using the same formatting as the other content. At the beginning of 2023, around 39% of Filipino users were on the platform.
|PHP5.66- PHP84.9 ($0.10-$1.50)
TikTok Ads Cost
TikTok is the second most-used platform in the Philippines, with 77.2% of Filipinos logging in at the start of 2023. Its ad reach is staggering – at about 51% of the local internet user base. Just like the usual content on the platform, TikTok ads are usually in a short video format.
X (Formerly Twitter) Ads Cost
Colloquially still known as Twitter, X’s ad reach in the Philippines in 2023 equaled 10% of the country’s total population. The types of ads on X typically revolve around the following:
- Promoted Tweets – These are your tweets that reach people who are not already following you on Twitter.
- Promoted Accounts – These are ads that showcase your entire X account.
- Promoted Topics – These are hashtags that you can put at the top of the trending list to get more visibility and engagement.
|Promoted Trends (per Day)
YouTube Ads Cost
You can find the breakdown of ad spending on YouTube in the table below. For more in-depth information, refer to this article.
The Effectiveness of Social Media Advertising in the Philippines
The effectiveness of social media marketing in the Philippines depends on how well you utilize your strategies. However, when done well, it can give you several benefits, which include:
Improves the brand’s reach and awareness
With a vast user base, platforms like Facebook, Instagram, and X offer opportunities to connect with your target audience. The immersive nature of social media allows brands to communicate their message creatively, fostering a stronger connection with the diverse population.
Increases click-through rate
One of the critical metrics indicating the effectiveness of social media advertising is the Click-Through Rate (CTR).
Bringing this into context within the Philippines, however, reveals interesting insights. Wordstream reveals that the typical CTR across industries in Google Ads is 1.91% on the search network and 0.35% on the display network.
Improves conversion rate
The ability to transition from engagement to conversion is a crucial aspect of a fruitful advertising strategy, and social media platforms play a significant role in influencing consumer behavior.
A survey conducted by the American Journal of Social Sciences and Humanities on those living in Sto. Tomas, Batangas, Philippines supports this, with 95.3% of the respondents agreeing that online visibility affects their purchase behavior.
One of the reasons for conversion could be the emotional dimension. Delving into specific platforms, the International Journal of Social and Management Studies found that students from Metro Manila not only purchased products on TikTok, but the emotional dimension also persuaded them to consider items they didn’t originally intend to buy.
Is It Worth Using Social Media Advertising in the Philippines?
Using social media advertising in the Philippines is worth the investment. The diverse online community and the country’s increasing adoption of digital media make social media platforms powerful channels for businesses.
Knowing how to cater to your target audience requires research, but a successful marketing strategy rewards you with increased conversion and improved brand awareness.
To capitalize on the opportunities that social media advertising can offer you, consider partnering with a PPC agency in the Philippines like Spiralytics. Our personalized solutions can help you navigate the nuances of the Philippine market, so your campaigns resonate and deliver results.
Contact us today for more information about our social media marketing services!