Online Ad Revenue Surges Forward As Variety Of Factors Combine for Growth
TORONTO, April 30 /CNW/ - The Interactive Advertising Bureau of Canada
(IAB) today announced that 2006 Canadian Online Advertising Revenues surged to
an unprecedented $1.01 billion dollars for the year. The 2006 actuals
represent a 26% increase over the $801 million originally estimated by the IAB
for 2006; and an 80% increase over the 2005 actuals of $562 million. Of the
$1.01 billion, approximately $208 million or 21 percent of ad dollars were
allocated to the French Canadian Online market, representing growth of 68%
over the 2005 actuals of $124 million.
2006 Canadian Online Ad Revenue by Advertising Vehicle, was as follows:
- Display advertising (including banner CPM and direct response
advertising, plus contests, sponsorship and microsites) - 36%;
- Search advertising - 35%;
- Classifieds/Directories - 27%; and,
- Email - 2 %
In actual millions of dollars, 2006 vs. 2005 Canadian Online Ad Revenue
by Advertising Vehicle, was as follows:
2006 2005 Change
---- ---- ------
Display $364M $230M +58%
Search $353M $197M +79%
Classifieds/Directories $273M $124M +120%
Email $20M $11M +82%
2006 Canadian Online Ad Revenue by Advertiser Category was also
tabulated, and was as follows:
- Automotive - 16%;
- Consumer Packaged Goods - 14%;
- Entertainment (Music, Film, TV) - 9%;
- Financial - 16%;
- Leisure (Travel, Hotel, Hospitality) - 14%;
- Retail - 16%; and,
- Other - 15%
What accounts for the eighty percent jump in 2006 vs. 2005 revenue
figures? IAB Canada and Ernst & Young LLP (who tabulated results from the
double-blind survey) cite a number of critical factors leading to the
- Substantial Revenue Growth Across All Publishers
- Small and Medium publishers (who typically net between $500k
to $5M/yr.) showed an average revenue growth of 85% vs. 2005;
- Large publishers (who typically net between $5M to $30M/yr.)
showed an average revenue growth of 155% vs. 2005; and,
- Very Large publishers (who typically net between $30M to
$100M/yr.) showed an average revenue growth of 62% vs. 2005.
- Revenue Growth Within Online Ad Networks:
- 2006 saw substantial growth in revenue for both US and Canadian
networks selling "Canadian eyeballs" aggregated across U.S. and
- More Integration, New Advertisers, New Advertising Choices and New Ad
- More integrated campaigns; more new, blue-chip advertisers
entering the market for the first time; more advertising
choices for Search; uptake of rich media; and, the addition of
video pre-roll advertising to the selection of Online
advertising tools, all helped drive the industry forward.
"Add to all of this, results from the 7 CMOST (cross-media optimization)
research studies that the IAB has undertaken over the past 4 years, plus the
fact that in the past two years alone, over 1,000 senior-level advertiser,
agency and publisher representatives have taken the IAB's Intensive One-Day
Course in Interactive Marketing and Online Advertising -- and you get a sort
of "perfect storm" that was able to move the Canadian Online advertising dial
forward to such an extent," says Paula Gignac, President of IAB Canada.
And there's still more growth to come. IAB Canada's projected total for
2007 Online advertising in Canada, is estimated to be $1.337 billion - a full
32 percent more than the 2006 actual of $1.01 billion. "It's interesting,"
says Gignac. "While it took us 13 years from when the first banner was served
on the Internet, until now, to reach the billion dollar mark in Canada, it may
only take us another two to three years to reach the second billion.
Fascinating times indeed."
About the IAB Canada 2006-07 Canadian Internet Advertising Revenue Report
The 2006 actual revenues and the 2007 estimated revenues were reached
after a comprehensive survey of all major Online publishers in Canada. Revenue
data was compiled and analyzed by Ernst & Young LLP.
For more information about the IAB Canada 2006-07 Canadian Internet
Advertising Revenue Report visit www.iabcanada.com.
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 a membership composed of advertisers, agencies, publishers and
Interactive service associates.
For further information:
For further information: Paula Gignac, President, IAB Canada, (416)