August 17 , 2010

Canada spent $1.82 billion online last year

2010 online ad budget set at $2.1 billion

Despite a year of decreased revenues for all other major media in Canada, the Interactive Advertising Bureau of Canada (IAB) announced that Canadian Online Advertising Revenues for 2009 exceeded budgeted expectations of $1.75 billion, and grew by 14% 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 Newspaper ad revenue.

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% of Online ad revenue was received by French Canadian Online publishing properties, representing year-over-year growth of 11%.

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 VideoGaming environment in Canada was also reported for the first time in 2009, and sits at $3 million dollars.

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," says Paula Gignac, President, IAB Canada.

"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. To me, that's a testament to both the rising importance of the Internet within the total media mix, and the growing expertise in Interactive marketing within the Canadian advertising community. 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."