Auto Category Tops Canadian Online Ad Revenues

  The Interactive Advertising Bureau of Canada (IAB) today announced that Canadian Online Advertising Revenues for 2010 exceeded budgeted expectations of $2.1 billion, and grew by 23% to $2.23 billion for 2010. As a result, the Internet has surpassed Daily Newspaper, and is now second only to Television in terms of share of total Canadian media advertising revenue. Online advertising’s 23% increase from 2009 to 2010 also bested all other major media, all but one which experienced only single-digit growth rates during this time.

Of the $2.23 billion, approximately $428 million or 19% of Online ad revenue was received by French Canadian Online Publisher/Ad Network properties, representing year-over-year growth of a similar 22%.

Search advertising continues to lead in terms of share of dollars booked by Online Publishers ($907 million/41%), followed by Display ($688 million/31%) and Classifieds ($587 million/26%). Together, these three advertising vehicles represent 98% of all Online advertising booked in Canada.

NEW!! For the first time, Display ad revenues were broken-out according to Standard Display (e.g. banners), Rich Media, Sponsorship and Direct Response/Lead Generation. Standard Display ads account for almost three quarters of Display in 2010 (74%) and 23% of Total Online ad revenues.

Online Video advertising grew by 85%, from $20 million in 2009 to $37 million in 2010.

Publisher-based Email advertising lost ground, declining from $13 million in 2009, to $11 million in 2010; while VideoGaming advertising dropped from $3million to $2 million.

2010 Canadian Online Ad Revenue by Advertiser Category was also tabulated, and was as follows:

• Automotive – 12%;
• Packaged Goods – 11%;
• Financial – 11%;
• Retail – 9%;
• Leisure (Travel, Hotel, Hospitality) – 6%;
• Technology – 5%;
• Telecommunications – 4%;
• Entertainment – 4%;
• Media – 4%;
• Pharma – 3%;
• 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 almost $2.6 billion in 2011, or 16% more than the 2010 actuals. This forecast includes a 17% increase to $500 million for French Publishers’ Online advertising revenues.

“Surpassing the $2 billion dollar mark for Online ad revenues and moving into second place in terms of overall ad spend in Canada — is without a doubt — a watershed moment for the Digital community in Canada,” says Paula Gignac, President, IAB Canada. “It’s incredibly fulfilling to see that the years of diligent and determined work by Publishers in developing ever-evolving and engaging content offerings for consumers, while simultaneously demonstrating the unique benefits of marketing within the medium to Advertisers, have culminated in this new level of success. Add to that, the Mobile channel coming into its own (with 2010 Mobile ad revenue numbers to be released by IAB Canada in the coming weeks), and the future of Interactive advertising in Canada looks extremely positive!”

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