Canada's Ad Market Continues Inexorable Shift to Digital - eMarketer

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Canada's Ad Market Continues Inexorable Shift to Digital

TV remains a fixture in ad budgets

December 23, 2015

In 2015, digital ads made up more than a third of total ad expenditures in Canada, eMarketer estimates, and that percentage will continue to climb in 2016. Digital's high degree of targeting precision and advanced metrics are attracting a larger share of ad budgets, even as many digital ad formats continue to mature, according to the latest eMarketer report, “Canada Digital Ad Spending Forecast 2016: Mobile, Video and Social Pushing Investment to New Heights.”

Digital Ad Spending in Canada, 2014-2019 (billions of C$ and % change)

Search advertising is the leading digital ad format in Canada, eMarketer estimates. In 2016, it will account for 53.0% of digital spending. Display will make up most of the rest, responsible for 43.1%.

The shift toward digital ad spending is inexorable, as marketers have clearly indicated they prefer the more concrete metrics associated with digital ad formats. Traditional formats rely on assumptions associated with reach and potential consumer engagement.

Digital Ad Spending Share in Canada, by Format, 2014-2019 (% of total)

For example, TV's gross rating point (GRP)—the percentage reach of an ad multiplied by frequency—is a proxy for ad effectiveness based on possibility rather than more concrete engagement measures for digital ad formats.

Many newer ad formats, such as social, digital video and mobile, offer a richer understanding of how consumers behave and use brand information.

Still, TV advertising will remain a major fixture in advertiser plans, even as consumers try new ways of consuming TV content. And print advertising—both in newspapers and magazines—will still command about a fifth of total ad spending in Canada in 2016.

Get more on this topic with the full eMarketer report, “Canada Digital Ad Spending Forecast 2016: Mobile, Video and Social Pushing Investment to New Heights.”

eMarketer releases over 200 analyst reports per year, which are only available to eMarketer corporate subscribers.

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