Online ad spend tops C$1 billion

Table: Interactive Advertising Bureau [Canada]

Online advertising brought Canadian publishers just over $1 billion in 2006, according to an annual survey by the Interactive Advertising Bureau released today. That’s an increase of 80% over 2005 revenues. The survey is based on revenue data supplied by the 87 largest online publishers.

The biggest increase [120%] was in classified and directory advertising which now accounts for over one quarter of the online ad spend.

Search and email advertising each rose by about 80%, and continue to account for 35% and 2% respectively of all online advertising.

The gain in classified and directory revenue came at the expense of the “mature” display ad category which, despite rising 58%, now accounts for only 36% of total ad revenue, down from 41% in 2005.

Graph: Interactive Advertising Bureau [Canada]

The IAB cites several reasons for the strong 2006 results, including:

  • revenue growth across Canadian and US networks selling Canadian “eyeballs”
  • more integrated campaigns
  • more new, blue-chip, advertisters entering the online market
  • more advertising choices for search
  • uptake of rich media ad formats and video “pre-roll” advertising

The IAB projects growth in online ad revenue during 2007 of 32%.

Online advertising, although growing quickly, accounted for about eight per cent of the approximately total advertising expenditure in 2006 [1.01 billion out of an estimated $12 billion].