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Friday, December 5, 2008

Drivers of Online Usage in the Philippines

Growth in the online usage has attracted marketers and business development officers to align their strategies to this social change. According to Yahoo, there is an estimated 14M online users as of April 2007. This is equivalent to 16% of the total population. This can be attributed to several factors like the aggressive price offerings from telecommunication, increased popularity of email, and social websites. Together with the accessibility and affordability of the broadband connections, we can expect that the online usage will continue to increase significantly.

The macroeconomic change and the user preference offer great opportunity for the development of the e-business. Currently, several organizations have experienced the integration of online and offline operations. Businesses like Shoemart has adopted Business to Business model which allow suppliers to secure purchase orders online. The procurement process of big businesses enjoyed efficiency and cost savings in human resources. The Consumer to Business model is more popular in the airline and hotel booking processes. Cebu Pacific has increased market share because of its promo fares which can be availed via internet booking. One of my favorites is It has really saved my time (my most important asset) in doing bank transactions.

Where do we go from here? The direct online experience of the young or matured Juan may be limited to forum or Friendster participation or the usage of email respectively. But as the market matures and demands for functionality, he will soon appreciate the beauty of online softwares- which is accessing of software over the internet through the web browser instead on equipments that they own. With this trend, we expect online innovations by local web providers will be continuous since users will put premium for data accessibility, faster implementation, and for businesses, lower developmental and upgrade costs.

Tuesday, August 5, 2008

The Future of the Undervalued Website

The value of a website as a marketing tool is most of the time underestimated because of the lack of internet traffic in the Philippines.
The value of a website as a marketing tool is most of the time underestimated because of the lack of internet traffic in the Philippines. Marketers blame it to the lack of internet access or PC ownership as opposed to the availability of radio, TV and newspaper in every key city in our country. Though the number of users is increasing, it is believed that it is still an immature market as compared to the developed countries.

Because of this perception, a group of marketers or top management refuses to invest in a professional website. It treats the cost of development as an expense rather an investment. In fairness, there is also a group which believes that the website allow them to be in equal footing with big players. Thus, they are willing to hire professional group of web developers to assist in managing and marketing their site.

Currently, there are 11 million Philippine internet users as reported by the Direct Marketing Convention last August, 2005. It is estimated that by 2010, the people who use the web will increase to 20% of the population. However, Filipinos are not contained in the Philippine islands. They are recognized to be the OCW whose population increases by 5% annually.

Web marketing is still in its infancy in the Philippines compared to the developed countries like US , Singapore, and Korea. But the growth is tremendous in emerging markets like China. So, there is no other way for the Philippines but to follow that trend. There will be always the first mover advantage; but opportunity loss for those who decide to come in late or never to join the bandwagon.

Should this forecast elevate the status of the undervalued website to a tool that is moderately valued? Or even a highly valued medium?

Portfolio Highlights

SMX (SM Exhibit and Convention Center)

Our team developed the website for SMX, currently the Philippines' latest and largest convention center.
Read more


Our team delivered the online system for the premier Original Pilipino Music (OPM) music download site,
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