MANILA, Philippines--Internet firm Yahoo is counting on its local partners to drive online Web advertising services that go beyond search.

Yahoo recently set up its Philippine office and appointed as partners Admax Network, Havoc Digital and Yehey. These partners will promote and sell display, search, and mobile advertising services for local customers.

Companies can engage with Yahoo directly but these partners are expected to handle more complex web advertising campaigns running on services like Yahoo Messenger or Yahoo for mobile.
Compared to traditional media like television, ad spending by local firms on the Web remains small, said Donald Lim, Yehey's executive director.

"Marketing people still need a lot of handholding when it comes to online," Lim said. "But the market is growing and multinational firms have improved and now allocate between three to five percent of their annual budgets."

Those who already advertise online are increasingly looking at other campaigns besides simple banner ads and web displays, Lim added in an interview with INQUIRER.net.

Which means Yahoo wants more strategic relationships with partners like Yehey in chasing after advertisers. For Yahoo, having an office in the Philippines alone indicates its confidence on the local advertising market.

"We want our partners to run integrated campaigns for customers," said Jojo Anonuevo, Yahoo Philippines general manager. "But we want them to help us educate the market so we can focus on further strengthening the Yahoo brand here."

Yahoo is counting on growing Internet use in the country in making online a more viable advertising medium. According to Yahoo's estimates, there are 22 million Filipino Internet users and that is growing 30 percent every year.

In an interview, Anonuevo said Yahoo is also localizing content on services like YM and mobile. "We also see mobile becoming a more viable advertising platform," he said. Yahoo has forged partnerships with Smart, Globe and Digitel/Sun Cellular.