Robust Growth Continues for Social Ad Spend in Canada - eMarketer

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Robust Growth Continues for Social Ad Spend in Canada

By 2015, advertisers will spend C$20.95 ($20.95) to reach each social network user

October 4, 2013

Social network ad spending is still growing robustly in Canada, where eMarketer estimates advertisers will spend C$267.1 million ($267.1 million) this year on paid ads on social networking sites, social games and social apps.

That’s a projected 35.3% increase in social network ad spending since 2012, a rise almost as rapid as last year’s. Growth will slow to around 22% in 2014 and 2015—still a strong trajectory of year-over-year increases. In the US, for comparison, eMarketer predicts social network ad spending will rise 32.5% this year and a further 27.4% in 2014.

This growth will push social network ad spending past 10% of all digital ad spending in Canada by 2015, the end of our forecast period. In the US, it already accounts for 9.9% of digital ad spending this year, vs. 8.4% in Canada.

Social Network Ad Spending in Canada, 2012-2015 (millions of C$, % change and % of digital ad spending)

The number of people using social networks in Canada, though, is growing far more slowly, as most of the population who is interested in such activities is already doing them. Just 4.6% growth in social network users is projected for this year, when eMarketer estimates 17.7 million internet users in Canada will visit such sites at least monthly, or 51.2% of the population.

The relative plateau in usage levels combined with strong increases in ad spending mean that social network ad spending per social network user is rising almost as rapidly as social ad spending itself. This year, eMarketer estimates, advertisers will spend C$15.11 ($15.11) to reach each social network user in the country, up 29.3% over 2012. By 2015, advertisers in Canada will spend nearly C$21 ($21) per social networker.

Social Network Ad Spending per Social Network User in Canada, 2012-2015 (in C$)

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

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