Online advertising in Canada continues on a double digit growth trajectory, despite an overall slowdown for ad spending in other major media.
The continued increase in online ad spending is seen as a testament to both the rising importance of the Internet and other digital media platforms in the total media palette, as well as to the growing experience and expertise in interactive marketing found in the Canadian advertising community.
The Interactive Advertising Bureau of Canada (IAB) reports that ad revenues for 2009 exceeded budgeted expectations of $1.75 billion, growing by 14 per cent to $1.82 billion for 2009.
Publisher revenue from online advertising in Canada has increased at double digit rates in all but one of the past 10 years — building from $98 million in 2000 to the $1.82 billion mark reported above – and is rapidly closing in on ad revenue at daily newspapers.
Online advertising now represents 13% of the combined $13.8 billion total spent on all channels.
Of the $1.82 billion, approximately $352 million or 19 per cent of online ad revenue was received by French Canadian online publishing properties, representing year-over-year growth of 11 per cent.
Search advertising continues to lead in terms of share of dollars booked by Online Publishers ($741 million/41%), followed by Display ($578 million/32%) and Classifieds ($467 million/26%). Together, these three advertising vehicles represent 99% of all of the online advertising booked in Canada.
Online Video advertising nearly doubled in 2009: growing from $12 million in 2008 to $20 million; while Publisher-based Email advertising lost ground, declining from $18 million in 2008 to just $13 million in 2009.
Advertising within the video gaming environment in Canada was also reported for the first time in 2009, and sits at $3 million.
2009 Canadian Online Ad Revenue by Advertiser Category was also tabulated, and was as follows:
Automotive – 12%;
Packaged Goods – 10%;
Financial – 10%;
Technology – 9%;
Retail – 7%;
Telecommunications – 5%;
Entertainment – 5%;
Leisure (Travel, Hotel, Hospitality) – 5%
Media – 4%;
Pharma/Health – 2%; and,
Other – 31%.
Publishers within IAB Canada’s Annual Revenue Survey have projected that their revenues will continue to grow at an enviable pace, with Online Advertising Revenue in Canada estimated to be $2.1 billion in 2010, or 15% more than the 2009 actuals. This forecast includes a 14% increase to $400 million for French Publishers’ Online advertising revenues.
“It seems incredible that after passing the $1 billion revenue mark just two years ago – and after the worst recession in history — Internet advertising in Canada is poised to break through to the $2 billion mark in 2010,” Paula Gignac, President, IAB Canada, said in a release.
“What’s even more impressive, is that Internet advertising in Canada has grown at a double-digit rate in the face of low, no, or negative growth in other countries. Clearly, the few advertising pioneers of yesterday have now been joined by a mass of companies who have not only made the jump to Interactive, but who are also increasing their investment based on positive brand and direct results from the various channels within.”
The 2009 Canadian Internet Advertising Revenue and the 2010 estimated Canadian Internet Advertising Revenue estimate was reached after a comprehensive Survey of all major Online Publishers in Canada. Revenue data was compiled and analyzed by Ernst & Young LLP.
August 12, 2010
source: mediacastermagazine.com