Canadian Online Advertising Revenue Grows by almost 30% in 2008 to $1.6 Billion (and Surpasses Radio)

Posted by Chris Patheiger

IAB Canada released its best estimate of online advertising revenue in Canada for 2008 earlier this week. Along with 2008 stats, it produced a prediction of what will likely to happen in 2009. This data and research supports what Forester Group already identified a few weeks ago.

Here’s the jist of it:

• 2008 Canadian online marketing grew to $1.6 billion and beat out radio as a medium of choice – this includes all vehicles within the medium rolled in together (search, email, display, etc). Search continues to lead the lead the charge accounting for 38% or $608MM. Search represented ~38% last year as well.

• Display advertising holds on to the number two spot with 35% of all revenue or $560MM – Like with search, no change in % composition from last year.

• Online Classifieds was 30% or $480MM up from 25% last year.

• Email revenue topped out at $18MM in 2008 as it did in 2007. Where search, display and classifieds market share was unchanged in the last two years, email marketing actually shrunk.

• The big winner was video advertising growing from 1% / $9MM in revenue in 2007 to an estimated $33MM or 2%.

• French Canadian online media represents 20% of the above. Down 1% in composition from last year but the market has seen its revenue base grow from $260MM in 2007 to $317MM in 2008 – a 22% increase.

• Revenue composition associated with Financial, Technology, CPG and Travel/Leisure remained relatively unchanged from last year. The industry saw a decline of 3% in Automotive, 2% in Entertainment and 4% in Retail ad spend while Telecom grew by 2%. This leaves 32% unaccounted for – growing from 26% in 2007.

The early estimates for 2009 is around $1.75 billion, about 10% higher than 2008 – not bad considering economic conditions. Keep in mind that these numbers are based on companies that disclosed their revenues to Ernst & Young LLP. Take this with a giant grain of salt as not all companies can be depended on to submit accurate revenue numbers and some companies don’t submit any. That said, the IAB has provided a pretty decent indicator of the state of the nation and I think the message for all is positive.

For more information on 2008 Canadian Online Advertising Revenue and more IAB Canada News check out www.iabcanada.com

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Chris Patheiger is a Vice President at Redux Media, a leading international online publisher network of top-quality, specialty websites and media representation firms. Chris is responsible for Communications, Sales and E-Publisher of the Redux Blog. He can be reached at chris@reduxmedia.com