TORONTO, April 11 /CNW/ - The Interactive Advertising Bureau of Canada (www.iabcanada.com) today announced that Mobile Advertising Revenues in Canada exceeded budgeted expectations of $18 million, and grew by 169% over
2008 numbers, to just over $31.9 million for 2009.
For 2010, Canadian Mobile Advertising Revenues are forecast to grow by
60%, to $51 million.
Concentration Of Advertising Revenues
The Top 10 Earners in IAB Canada's Mobile Advertising Revenue Survey
accounted for 90% of Total Net Revenues in 2009. Revenue concentration
among the Top 10 earners has increased substantially over levels
recorded during previous years, which ranged from 79% in 2006 to 81% in
Revenue By Advertising Vehicle
In order to get an update on Ad Spend as per other Media, but also keep
track of the rapidly growing Application (App) development industry;
for the first time, Mobile Advertising Revenues were separated into
mutually-exclusive Ad Placement/Spend and Production-Only categories
within IAB Canada's Survey.
Ad Placement/Spend was the main engine behind the 169% increase in
overall Canadian Mobile Ad revenues in 2009, growing at a rate of 325% year over year, driven primarily by Mobile
Messaging, with $15.65 million in Net revenue. Mobile Search also grew
dramatically in 2009 -- to $6.7 million -- exceeding Mobile
Display/Sponsorship Ad Revenues, which grew to $5.1 million.
Production-Only Ad Revenue was led by monies received for the
development of Mobile Applications, which experienced a massive 1377%
growth rate compared to 2008, due to the proliferation of smartphones
of all makes and models, following the iphone launch in Canada in April
Revenue By Advertising Category
Among the 11 Product/Service categories examined in 2009,
Telecommunications, Entertainment and Packaged Goods accounted for 50%
of all reported 2009 Mobile Advertising Revenues in Canada; Automotive,
Financial, Leisure Travel, Media and Retail categories collectively
generated 43% of Canadian Mobile Ad Revenues; with the remaining 7%
belonging to the Technology, Pharma and Other categories.
Mobile Advertising Growth As Compared To Growth In Online And Other
Because it is at such a nascent stage, Mobile advertising's annual
revenue growth rate was dramatic in 2009 (+325%), compared to the
substantial decline mature major media saw (-11% when averaging across
all of TV, Newspaper, Radio, Out Of Home and Magazines); and was 23
times faster than Online's impressive growth of +14% during the same
Challenges + Opportunities Going Forward
Mobile marketers believe Advertisers do not currently allocate enough
funds to digital as a whole, to permit carving-out a meaningful amount
of dollars for Mobile; perhaps because Mobile has not yet been proven
for many verticals, or because Canadian audience measurement for Mobile
is not yet in place. Mobile marketers recognize that getting
Advertisers to consider where Mobile might fit into their overall
digital strategy is an important first step in establishing permanent,
annual budgets for Mobile.
Going forward, it is believed that local market Mobile Search and Mobile
location-based advertising will drive Mobile's audience expansion to
levels that will meet Advertiser and Agency demands for reach in
combination with targeting. Increased Smartphone penetration will also
drive critical-mass audiences and multi-media content consumption,
accelerating the addition of Mobile to multi-platform advertising
programs -- combining for example -- TV, Internet and Mobile.
"Mobile marketing was well on its way to reaching critical mass as of
2009," says Steve Rosenblum, Director of Research, IAB Canada. "Given
that the study was conducted late in 2010, budgeted estimates should
also paint a very accurate picture of growth for the whole year, and as
a result, show even more momentum building in 2010."
Paula Gignac, President, IAB Canada agrees. "Mobile advertising is
growing in the typical hockey-stick manner, and shows no sign of
plateauing in any way shape or form at this point. What will drive even
more Advertiser acceptance now is more Research, Education, Standards
and Human Resources dedicated to the channel -- precisely what IAB
Canada began six years ago with the creation of its Mobile Committee
within the Emerging Platforms Council -- but which will now be
accelerated with the launch of our new Mobile Council, and new partnerships with the Mobile
Experience Innovation Centre (MEIC) and OCAD University just last week."
Download IAB Canada's 2009 Actuals/2010 Estimated Canadian Mobile
Advertising Report Now!
The Interactive Advertising Bureau of Canada (www.iabcanada.com), is the national voice and de facto thought leader of the Canadian
Interactive marketing and advertising industry, and is a not-for-profit
association representing Canada's most well-known and respected
Advertisers, Agencies, Media Companies, Service Associates, Educational
Institutions and Government Associations.
SOURCE Interactive Advertising Bureau of Canada
For further information:
For more information about IAB Canada, contact: Paula Gignac, President, IAB Canada at (416) 598-3400 (ext. 26), or via the Contact Us! form at www.iabcanada.com.