MANILA: Campaigns & Grey has snatched the Digitel GSM business,
reportedly worth US$1.5 million, from Publicis affiliate Basic
Advertising in a tight two-horse race.
Until Campaign's win, Basic was the main agency for Digital
Telecommunications Philippines' entire Digitel One account.
The third and final player in the GSM networking category, after the
Philippine Government stopped handing out licences, Digitel is gearing
to launch its GSM offering in the second quarter of next year.
It plans to spend $200 million to launch its GSM network
nationwide.
As a newcomer, Digitel faces two dominant, heavy-spending competitors -
PLDT subsidiary Smart Communications and Globe Telecom.
In addition to their heavy advertising expenditure, both Smart and Globe
are also investing heavily to improve their GSM network ahead of
Digitel's launch.
Despite the global cooling in telecoms activity, Globe will invest
$784 million and Smart will commit $335 million to expand
their GMS networks and customer base.
"The budgeting for media campaigns is still being defined. We intend to
become a key player next year," said Patricia Go, director of
advertising at JG Summit, the largest shareholder in Digitel, with a
47.4 per cent stake.
