Report says it's the "end of the digital beginning" mobile advertising
is the greatest opportunity and asks how companies will implement their
TORONTO, June 12, 2012 /CNW/ - The Canadian entertainment & media (E&M)
market will grow faster than the U.S. to 2016 primarily because of
higher spending on Internet access and TV subscriptions, says a new report from PwC. The Global Entertainment and Media Outlook 2012-2016 shows Canada's E&M market growing at a 6.5% compound annual growth
rate (CAGR) compared to 5.2% in the U.S through 2016.
But growth of Internet advertising in both countries will continue to be
significant and will be highlighted by the ability to capitalize on
mobile advertising opportunities, says the report. In Canada, mobile
advertising will grow at a 42.6% CAGR, followed by other internet
advertising segments including video (31.9%), banner display (16.8%)
and search (13.5%). Other fast growing segments will be Internet access
at 11.8% and TV subscriptions and license fees at 8.6%.
"Mobile advertising is still a small market but it's soaring in North
America. Between 2010 and 2011 the segment grew by almost 149% in the
U.S. and 109% in Canada," says Michael Paterson, a partner in PwC's Canadian Entertainment & Media practice. "Given the
amount of time consumers are spending on their devices outside of
making phone calls, it's glaringly apparent how much of an opportunity
this advertising medium is."
Over the forecast period U.S. mobile advertising is expected to grow
slightly slower at 42.4% CAGR. Paterson says there are challenges in
monetizing the amount of time consumers spend on their mobile devices
and Canadian and U.S. companies will need to act fast to capitalize on
the opportunities. "As networks are upgraded, new location-based
marketing services are developed, and the capability to mine customer
data improves, mobile advertising dollars will begin to flow."
The report also shows that the overall advertising market was healthier
in Canada than the U.S. last year, growing by 5% compared to 2% in the
U.S. Over the next five years it's expected that U.S. and Canadian
advertising spending on a combined basis will grow similarly at almost
6%, driven in part by mega-sporting and political events such as the
Olympics and elections - from US$184 billion in 2011 to US$245 billion
by 2016. Internet advertising (wired and mobile), in-video game
advertising, TV and out-of-home are expected to be advertising's
"The challenge for entertainment & media companies rests not only in
monetizing great content, but the growing fact that consumers are now
"king" and their desire for customised experiences and getting content
on their terms will require transformation on the part of companies to
keep up," says Paterson. "Location-based-marketing, mobile technology
and social media are and will continue to be the driving forces behind
In 2011 entertainment & media spending in North America grew by 3.3%,
the largest increase since 2007. The Canadian market grew by 5.7% in
2011 due to higher spending in Internet advertising (22.8%) and
Internet access (17.5%). TV subscriptions, radio and out-of-home
advertising were other big winners, each expanding more than 6%.
Faster growth is expected over the next five years with the overall
North American market expected to reach US$658 billion by 2016 from
US$508 billion in 2011. "We will see double digit growth from Internet
advertising, and increases of 5% CAGR or more from segments that
continue to be important to consumers and advertisers like Internet
access, Internet Advertising, TV subscriptions, specialty TV
advertising, music and out-of-home advertising," says Paterson.
Consumer spending in Canada will increase at 5.3% CAGR to 2016, compared
to 3.7% in the U.S.
This year's Outlook shows some interesting Canadian tipping points that will occur over the
next few years, especially for those segments which are taking
advantage of digital revenue streams:
Internet ads beat out TV ads by 2014: Canadian spending on internet advertising will overtake TV advertising
by 2014 and be 23% larger by 2016.
Video games overtake consumer books: spending on video games will overtake spending on consumer and
educational books in Canada this year, to be almost 20% larger by 2016.
Music: Canadian spending on music rose 2% in 2011, the first gain in many
years, thanks to the growth in the concert and music festival market
and a slower decline in recorded music spending. As a result, and due
to increased spending on digital music, overall spending will increase
from now through to 2016 at 4.1% CAGR.
Key global stats from PwC's Global Entertainment and Media Outlook 2012
- 2016 also include:
Total E&M spending: Latin America will be the fastest-growing region over the next five
years, while Europe, Middle East and Africa (EMEA) will be the
Total advertising spending: of the world's 13 advertising markets above US$7 billion in 2011, the
fastest-growing through 2016 will be China (14.6% CAGR), Russia and
Indonesia (both 13.1 %) and Brazil (9%).
Total consumer/end-user E&M spending: of the countries above US$10 billion in 2011, the fastest-growing
through 2016 will be China at a CAGR of 9.9%, followed by India and
Brazil, both at 9%.
Mobile Internet access: during the next five years, India's mobile Internet subscribers will
increase at a 50.8% CAGR and spending at a 42.4% CAGR, the fastest in
Internet advertising: China and South Africa will be the world's fastest-growing countries
during the next five years, with compound annual increases of 32.1%and
PwC's Global Entertainment and Media Outlook: 2012-2016 was released
today to media worldwide and provides forecasts and analysis on 13
major E&M industry segments in 48 countries. To request online access
to the full Outlook report, contact Kiran Chauhan at email@example.com. This will allow you to extract detail from the full Outlook dataset
and analysis at a segment and geographic level, and by creating charts
on-screen that can be exported for use with your stories.
About the Outlook
PwC's Global Entertainment and Media Outlook 2012-2016, the 13th annual edition, contains in-depth analysis and historical and forecast
data for advertising and consumer/end-user spending in 13 major
industry segments across 48 countries. Find out more at http://www.pwc.com/ca/emoutlook.
Follow us on Twitter: #emoutlook
Segments covered by the Outlook
Business-to-business, Consumer and educational books, Consumer magazine
publishing, Filmed entertainment, Internet access spending: wired and
mobile, Internet advertising: wired and mobile, Newspaper publishing,
Out-of-home advertising, Radio, Music, Television advertising, TV
Subscriptions and license fees, Video games.
Digital spending consists of broadband and mobile Internet access;
online and mobile Internet advertising; mobile TV subscriptions;
digital music; electronic home video; online and wireless video games;
digital consumer magazine circulation spending; digital newspaper
circulation spending; digital trade magazine circulation spending;
electronic consumer, educational, and professional books; and satellite
About PwC Canada
PwC Canada helps organizations and individuals create the value they're
looking for. More than 5,700 partners and staff in offices across the
country are committed to delivering quality in assurance, tax,
consulting and deals services. PwC Canada is a member of the PwC
network of firms with close to 169,000 people in 158 countries. Find
out more by visiting us at www.pwc.com/ca.
© 2012 PricewaterhouseCoopers LLP, an Ontario limited liability
partnership. All rights reserved.
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