Philippine retailers tap TikTokers to boost sales

The ad spending per internet user is lower for influencers than traditional social media.

More Philippine retailers are hiring TikTokers and YouTubers to promote their products and drive revenue growth, as influencer marketing outpaces traditional social media campaigns at a fraction of the cost.

Influencers can streamline the marketing process by handling all stages of consumer engagement — from awareness to conversion, Eucel Maximo, director at YCP Interactive Solutions, told the recent Retail Asia Forum in Manila.

“In the Philippines, the average ad spend per internet user on influencer marketing is $1.02 compared with $5.35 for traditional social media advertising,” he said.

Their self-sufficient approach to content production and familiarity with the algorithm give brands substantial exposure at minimal effort and cost.

“They have the power to affect purchasing decisions through their authority, knowledge, position, and relationship with the audience,” he added.

About 75% of consumers in Southeast Asia are more likely to buy a product recommended by an influencer, according to Partipost’s Influencer Marketing Report 2024. “This shows how much trust and influence these personalities have compared with traditional advertising.”

Additionally, 80% of people surveyed have bought something based on an influencer's endorsement at least once.

The influencer marketing industry is projected to grow to $24b by the end of 2024, with 63% of brands planning to use artificial intelligence (AI) to execute their influencer campaigns, according to Influencer Marketing Hub.

TikTok, which is used by 69% of brands using influencer marketing, is by far the most popular channel, now well ahead of Instagram (47%), YouTube (33%), and Facebook (28%), it added.

Nano-influencers — those with at least a thousand social media followers — and micro-influencers with at least 10,000 are generally more appealing to brands with a tight budget or targeting a specific market, Maximo said.

He attributed this to authenticity. “Followers are drawn to influencers because they’re genuine and have earned their credibility over time.”

Video also serves as a powerful medium for influencers, he said, noting that 97% of Filipinos watch online videos weekly, more than half of which are produced by influencers.

"In Southeast Asia, people increasingly trust video content or even TikTok to provide information,” Maximo said, adding that most of the region’s users have discovered new brands and products through the platform.

He said 79% of TikTok users in Southeast Asia found creator content helpful in making their final purchase decision, whilst 89% felt that it influenced their buying choice. Most users are also likely to make their own TikTok videos after buying a product recommended by an influencer, sharing their experiences and continuing the cycle.

“This highlights the full-circle influence of these creators at every step of the product journey,” Maximo said.

Philippine retailers, however, have yet to fully commit to influencer marketing, he said. “In advanced markets, it’s already a top priority, if not the only strategy.”

Three of five marketers in the UK, US and Germany agreed that influencer marketing delivers a better return on investment than conventional ads, Maximo said, citing data from German online data platform Statista published last year.

“This trend should prompt local businesses to consider whether they’re investing enough in influencer marketing as they plan their fourth-quarter budgets,” he added.