GMA Network’s advertising revenues saw a drop in the first half of 2020.
According to its disclosure to the Philippine Stocks Exchange, the Kapuso network dropped 15% on their ad revenues which translates to 6.1 billion pesos, 1.2 billion lower that its previous 7.3 billion revenues from advertising.
GMA Network attributed the drop to the absence of political ads and the effects of COVID-19 pandemic which forced many companies to lower their advertising expenses.
With the report, it seemed that most advertisers did not shift to GMA Network after the shutdown of rival ABS-CBN.
GMA Network also admitted that there were just a few “incremental revenues” from the shift in advertising placements.
Earlier, the Philippine Association of National Advertisers (PANA) said that the shutdown of ABS-CBN does not guarantee that the remaining networks will get ad placements.
According to PANA President Marvin Tiu Lim, 45 percent of TV ad spending has been lost but many advertisers will look for alternative ways like advertising online, in newspapers, or on the radio.
“Sa ngayon, konting dagdag sa kanilang network, pero based on our data hindi po talaga napupunta sa ibang network,” Lim said in an interview with DZMM.
“Napilitan kami sa isa o dalawang network na natitira na dun lang ilagay ang advertisement namin. Napipilitan kami na i-transition to online, sa ibang paraan,” he added.
Meanwhile, GMA’s total earnings for the first half have slightly increased by 4% or P1.4 billion.
This is because of the drop in their operating expenses since they halted the production of many of their shows due to the pandemic. Kapuso network’s operating expenses fell by 21% to P4.7 billion in the January-June period from the previous P6 billion.
