Advertising industry in Canada - Statistics & Facts

According to 2016 calculations, the Canadian advertising market ranked tenth on the global scale, with ad expenditures estimated to reach 9.14 billion U.S. dollars that year. In comparison, advertising spending in the United States in the same period was believed to amount to 190.84 billion. While it is common for advertising investments to continually decrease in developed countries, Canada’s ad expenditures are projected to grow by 2.4 percent in 2017, compared to 2016. In comparison, the country’s southern neighbor is expected to spend less on advertising in the same timeframe.

In line with the market trends, internet in Canada continues to hold the largest share of advertising revenues as of 2015, 9.8 percent larger than the TV segment, which generated 26.6 percent of revenues in said period. Also, in the last measured period, retail had the highest share of online advertising revenue – 14 percent, followed by automobiles with 12 percent and consumer packaged goods with an 11 percent share. What is more, mobile net advertising revenue has been exhibiting the highest revenue growth rates between 2008 and 2015 – with latest figures indicating growth of 81 thousand percent. In comparison, desktop ad revenues were calculated to grow by 240 percent that same year.

In terms of advertising in traditional media, magazine and newspaper revenues are considered to have experienced the largest decrease in recent years. Starting after 2012, when daily newspaper ad revenues first dropped below two billion Canadian dollars, ending with 2015 when ad revenues came down to 1.18 billion. In contrast, TV and radio advertising in Canada have not experienced any major fluctuations in that period and recorded revenues of 3.34 and 1.58 billion Canadian dollars in 2015, respectively.

However, as far as consumers are concerned, 2015 research shows that newspaper advertising was considered the most trustworthy, followed by radio, while online ads were the least trusted by Canadians. The one channel of product advertising that trumped newspaper ads for trustworthiness was peer suggestions, both offline and online. According to 2015 consumer research, more than 80 percent of Canadians had confidence in products or services recommended by their friends and family or people they know, and 66 percent relied on online customer reviews. Text messaging advertising held the lowest share of consumers’ trust.

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