Mobile Ad Spending in Canada Leaps 115% - eMarketer

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Mobile Ad Spending in Canada Leaps 115%

Search, display dominate mobile spend

December 17, 2014

Digital advertising now accounts for almost a third of total advertising expenditures in Canada. At 31.3% of total media spending, digital now exceeds TV as the largest form of advertising investment, according to a new eMarketer report, “Canada Digital Advertising: eMarketer’s Latest Ad Spending Estimates and Outlook for 2015.”

Mobile Ad Spending in Canada, 2013-2018 (millions of C$ and % change)

The growth in mobile advertising is the major story, even though marketers are still learning about the mobile channel. Mobile’s increasing share of time spent with media is clearly recognized. Advertisers are meeting that opportunity by growing their mobile investments to C$952.5 million ($890.2 million) this year and with 65.0% further growth in 2015.

Marketers have lingering questions and concerns about mobile advertising, including worries about screen size and targeting. But the rapid growth of mobile ad spending suggests those concerns are outweighed by a desire to have a presence on consumers’ mobile devices.

Mobile Ad Spending in Canada, by Format, 2013-2018 (millions of C$)

By format, mobile ad investments in Canada mirror overall digital breakdowns in that search and display dominate spending. Mobile search accounted for C$486 million ($454.2 million) in 2014, more than double 2013 levels, mainly due to the investment of local retailers and restaurants, which perceive mobile search as particularly effective for their businesses.

Meanwhile, mobile display reached C$447 million ($417.8 million).

Mobile Ad Spending Share in Canada, by Format, 2013-2018 (% of digital ad spending in each format)

Mobile display now accounts for a 30.3% share of total digital display ad spending in Canada and is expected to grow to 79.8% by 2018. Similarly, mobile search will grow from 22.6% of total search in 2014 to 67.7% in 2018. Overall, mobile ads as a percentage of digital ad spending in Canada will be 23.9% in 2014, growing to 68.3% in 2018.

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 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.

About eMarketer’s Interactive Guide to Worldwide Ad Spending

eMarketer’s latest worldwide ad spending forecast is accompanied by an interactive tool that provides open access to data on traditional, digital and mobile ad spending in 22 countries. Explore the dynamics of the global advertising landscape and compare and contrast which countries are projected to make the fastest switch to digital, and which are staying the course with traditional outlets.

You can view the visualization tool here: emarketer.com/adspendtool

Get more on this topic with the full eMarketer report, “Canada Digital Advertising: eMarketer’s Latest Ad Spending Estimates and Outlook for 2015.”

This report answers these key questions:

  • What is the outlook for advertising spending by media type in Canada?
  • What factors will drive increased overall ad spending in 2015?
  • How are digital and mobile changing the advertising landscape?

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