Online Advertising in Canada Doing Better Than Expected
Around the world, countries are tapping into online advertising to increase leads and profit. Canada is now among the many that has taken advantage of this advertising platform.
According to a report from the Interactive Advertising Bureau of Canada, online ad revenues exceeded $1.6 billion last year. This represents a 29 percent increase from the previous year. It also surpassed projects that was pegged at $1.5 billion.
Internet ad revenues are currently performing better than radio ads, which is currently at $1.55 billion. Of the total $14 billion spend on media advertising in Canada, 11% was dedicated to Internet advertising.
“I like the fact that Canada has caught up with the U.S., and we could see more movement there next year as well,” said Paula Gignac, president of IAB Canada.
Of the total online advertising spend, $602 million was invested in search advertising, accounting for 38 percent of the total online ad revenue. Display advertising revenue reached $490 million or 31 percent of the total. Meanwhile, classified ads revenue brought in 30% of the total, amounting to $480 million. Video advertising also started to pick up with a total of $12 million in revenues.
Car advertisers were the most active in online advertising contributing 13 percent of all online ad revenues. The finance sector shared 11 percent, technology 10 percent and telecommunicates 9 percent. Packaged goods, media and entertainment, leisure and retail also spent a significant amount in online advertising sales.
Online advertising revenues have increased by leaps and bounds in the past five years. In 2004, total sales for online advertising was at $364 million. The dramatic increase has brought that figure up to $1.6 billion figure for 2009. IAB expects the trend to continue, forecasting revenues of $1.75 billion for 2009.
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