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In Canada, Digital's Share of Ad Spend Lags US

US will continue to top Canada for digital dollars as a portion of ad spend through 2018

Digital ad spending in Canada is rising apace, but as a share of total media spending, the country still lags behind the US, according to eMarketer’s latest forecast of total media and digital ad spending in countries around the world.

Last year, advertisers in the US and Canada both devoted around one-quarter of total media budgets to digital—including all paid advertisements served to any internet-connected device. The US was slightly ahead and will pull further ahead by this metric in coming years. In 2014, eMarketer estimates, US advertisers will devote 28.2% of total budgets to digital, vs. 26.1% in Canada. By the end of our forecast period, the US will have widened the gap to nearly 7 percentage points.

This comes even as digital ad spending growth in Canada continues at double-digit rates this year, although growth is expected to slow for the foreseeable future. Display—especially video—will be the fastest-growing digital format in Canada through 2017.

eMarketer bases all of its forecasts on a multipronged approach that focuses on both worldwide and local trends in the economy, technology and population, along with company-, product-, country- and demographic-specific trends, and trends in specific consumer behaviors. We analyze quantitative and qualitative data from a variety of research firms, government agencies, media outlets and company reports, weighting each piece of information based on methodology and soundness.

In addition, every element of each eMarketer forecast fits within the larger matrix of all of its forecasts, with the same assumptions and general framework used to project figures in a wide variety of areas. Regular re-evaluation of each forecast means those assumptions and framework are constantly updated to reflect new market developments and other trends.

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