TORONTO, Sept. 20, 2011 /CNW/ - The Interactive Advertising Bureau of
Canada (www.iabcanada.com) today announced that Mobile Advertising Revenues in Canada grew 93% above 2009 totals to just over $52 million in 2010, and are
forecast to grow to $82 million in 2011.
Concentration Of Advertising Revenues
The Top 10 Earners in IAB Canada's Mobile Advertising Revenue Survey
accounted for 82% of Total Net Revenues in 2010. Revenue concentration
among the Top 10 earners has remained fairly steady over the three
years, ranging from 79% in 2008 to 82% in 2009, 2010.
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; as
with 2009 figures, 2010 Mobile Advertising Revenues were separated into
mutually-exclusive Ad Placement/Spend and Production-Only categories.
Ad Placement/Spend was the main engine behind the 93% increase in overall Canadian Mobile Ad revenues in 2010, growing at a rate of 105% year-over-year, driven primarily by Search,
with $17.1 million, and Mobile Display/Sponsorship at $15.6 million in
Net revenue. Mobile Messaging grew by 17% to $12.5 million in 2010,
rounding out the top revenue ad placements.
Production-Only Ad Revenues consisted mainly of revenue received for the
development of Mobile Applications, which experienced a 49% growth rate
in 2010, as Consumers traded in their basic handsets for various makes
and models of smartphones supporting enhanced advertising and App
Revenue By Advertising Category
Consumer Packaged Goods represented over one-fifth (22%) of all reported
Mobile Advertising Revenues in Canada in 2010. Retail, Telecom and
Automotive follow at a distance with 12%/12%/11% share of revenues
respectively. The remaining 43% of total ad revenue is distributed
among the following seven categories: Financial (9%); Entertainment
(8%); Media (7%); Leisure Travel (6%); Technology (5%); and
Pharma/Healthcare (3%). 'Other' made up the 5% difference.
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 2010 once again (+105%), compared
to the +7.4% growth experienced by the overall Canadian media sector,
and was over 4 times faster than Online's impressive growth of +23%
"Mobile has clearly benefited from Advertisers' desire NOT to miss the
Mobile train the way they did in the early years of the Internet," says
Steve Rosenblum, Director of Research, IAB Canada. "In fact, just as it
is across the US, UK and Europe, the momentum behind Mobile in Canada
is now propelling it into the advertising spotlight with an even
greater rate of uptake than we saw during the early years of the Web."
Paula Gignac, President, IAB Canada agrees. "Mobile marketing has very
fundamental, core differences from Internet marketing, but it
definitely benefits from all of the lessons learned by Publishers,
Networks and Technology providers who endured the Internet's
rollercoaster ride through Web 1.0 and 2.0. The result for Marketers,
is that the ecosystem is also coming together and developing
efficiencies faster than we were able to do Online, and so it's even
more important that Advertisers allocate new budgets for Mobile right
now - in addition to what's already allocated for their Internet spend
- in order to get the early-mover advantages that they missed out on,
on the Internet. Mobile's always-on and personal nature make it an
important place for marketers to build and revitalize brand
relationships; extend reach to key audiences; and of course, drive
sales through engagement and action-oriented Mobile content and App
Download IAB Canada's 2010 Actuals/2011 Estimated Canadian Mobile
Advertising Report Now!
NOTE: Tablet Revenues are not included in this Study, as the Tablet was
only introduced in May 2010 in Canada, and the first revenue-generating
Applications only developed in September 2010. Therefore, Tablet
Revenue will only be broken out in the 2011 Revenue Survey.
IAB Canada (www.iabcanada.com), is the national voice and de facto thought leader of the Canadian
Digital marketing and advertising industry, and is a not-for-profit
association representing Canada's most well-known and respected
Advertisers, Agencies, Media Companies, Mobile and VideoGame Marketers
+ Developers, Measurement Companies, Service Providers, Educational
Institutions and Government Associations operating within the space.
SOURCE Interactive Advertising Bureau of Canada
For further information:
President, IAB Canada
416-598-3400 (ext. 26)