MANILA - Social networking sites may be the next growth drivers of the Philippine advertising industry especially in a time when companies cut costs and Filipinos begin to turn to the Internet for information and entertainment.

Facebook, Multiply, and Friendster are only some of the social networking sites currently popular in the country.

According to Multiply Executive Chairman Claudio Pinkus, companies can use these websites to market their products and get to know their customers better.

"By 2010, we're seeing double-digit increases in the growth of ad revenues in social media, going over to the next decade," Pinkus said.

Before achieving growth, however, Pinkus said the Philippines and Asia have to address issues attached to advertising in the online sphere. Specifically, he said advertisers should change the common notion that social networking sites can only be used as personal space.

Pinkus' statement was supported by Friendster Asia Head Ian Stewart who said that the online medium still has great potential for growth in the Philippines. At present, he said the country has the lowest penetration rate in Asia of 15%.

"Social media in Asia is not the same as it is in the United States. In the US, you have people following people from one site to the next. Here in Asia, you have an average of 4 sites being used, and all for different purposes: you have LinkedIn for jobs, Flickr for photos, Friendster/Multiply and MySpace for the youth, and Facebook for contacting relatives overseas," Stewart said.

'Word of mouth'

Some 3,000 delegates from the advertising industry are participating in this year's Ad Congress, fewer than the 3,500 members present last year.

The decline was expected as the effects of the global economic crisis and the recent storms took a toll on advertising budgets, according to 2009 Ad Congress Chairman Margot Torres.

Vishnu Mohan, Chief Executive Officer of Havas Digital Asia Pacific, said this is where social networking sites enter the picture. With such a medium, he said companies can afford to reach more consumers especially those who have become more selective of marketing information.

More importantly, he said social networking sites can help companies protect their brands from negative publicity.

"What we're seeing here is the resurgence of word of mouth. Everything is instant. You see something negative online, it can damage the brand irreparably. Brands have to be aware of what's being said about them, and that's why they have to connect online," Mohan said.