Our revised estimates for total ad spending in Canada this year show a big decline, mirroring what’s expected overall for the Canadian economy. Digital will hold its level after years of double-digit growth.

In 2020, digital video ad spending exceeded TV ad outlays for the first time in Canada. Digital video gained the most momentum of any format amid the pandemic last year, growing by 10.0% year over year (YoY). This includes both in-stream video formats (e.g., YouTube ads) and those outstream (ads appearing in social media feeds).

Facebook’s US and Canada ad revenues came in at roughly $8.38 billion, up from $7.20 billion in Q1 2019. The US and Canada accounted for roughly 48% of Facebook’s worldwide revenues. On the earnings call, Facebook CFO David Wehner said the precipitous drop in revenues during March had moderated in the start of Q2.

Our ad spending forecast for Canada shows a slim majority of ad dollars funneling to digital, fueled by the duopoly’s massive impact on the local market.