IAB Canada Releases Results Of First-Ever Canadian Mobile Advertising Revenue Survey

    TORONTO, Feb. 24 /CNW/ - The Interactive Advertising Bureau of Canada
today announced that Mobile Advertising Revenue in Canada grew from $1.1
million in 2006 to $2.7 million in 2007, and is expected to almost double
again in 2008 to $5.2 million.
    Standard SMS advertising programs currently generate 75% of the total
Canadian Mobile advertising revenue, with the remainder divided across Premium
SMS, Mobile Content, Mobile (Display) Advertising, Mobile Search and Mobile
Applications. All forms of Mobile advertising are growing rapidly
year-over-year, with the exception of Mobile Search, which is virtually
non-existent at this time.
    In thousands of dollars, 2007 vs. 2006 Canadian Mobile Revenue by
Advertising Vehicle, breaks down as follows:

     Share of Canadian Mobile Revenue by Advertising Vehicle: '06 vs '07
                              2006        % share        2007        % share

                         $ (thousands)  of revenue  $ (thousands)  of revenue

    Standard SMS                  783           72%         1996          75%

    Premium SMS                    18            2%           84           3%

    Mobile Content                104           10%          219           8%

    Mobile Advertising             81            7%          140           5%

    Mobile Search                   0            0%            0           0%

    Mobile Applications             8            1%          121           5%

    Other                         100            9%          103           4%
    -----               -----------------------------------------------------
    Total                        1094          100%         2663         100%

    2007 Canadian Mobile Advertising Revenue by Major Product/Service Category
was also tabulated, and was as follows:

    Distribution of Canadian Mobile Ad Revenue by Major Product/Service
    Category: 2007
                                    Media/   Pack-              Tele-
    Total       Auto-  Fin-  Lei- Entertain- aged   Re-  Tech- communi-
    Mobile     motive ancial sure    ment    Goods tail nology cations  Other

    100%         4%     3%    1%      12%     19%   12%   8%     25%      16%

    "This is an important day for the Mobile marketing industry in Canada,"
says Peter Vaz, VP Director, Digital Communications, M2 Universal Digital, and
VP of IAB Canada's Emerging Platforms Council. "The results show not only the
rapid growth of the market to date, but beyond that, the fact that Mobile
marketing is poised to move from one-off experimental campaigns to becoming an
important part of the overall Interactive marketing mix. Moreover, as
multimedia and network capabilities evolve within the channel, the nature of
the advertising offer will evolve as well, moving well beyond current SMS
programs, into more sophisticated and personal Mobile Content, Video and
Application campaigns across an even wider range of Advertiser categories."
    While Mobile Advertising revenue is growing exponentially compared to
other major media -- 143% between 2006 and 2007, compared to the 5% growth
rate of all major media and Online's 38% growth over the same time period --
this is to be expected, given Mobile's relatively small and nascent
advertising revenue base.
    Yet even with this rapid growth, Mobile is still not without its
challenges. When asked to identify possible business constraints going forward
in the immediate term, Mobile Survey respondents cited the small size of the
Mobile Internet-enabled audience and the revenue-building restrictions imposed
by the current Carrier/Provider business model as the main obstacles to
overcome in the short-term. Understandably, there is also some concern about
the current economic downturn and the impact it could have on Mobile
advertising growth in 2009.
    "Fortunately, like all other Interactive media, one of the key strengths
of the Mobile channel is its inherent measurability," says Adrian Schauer,
Managing Partner, Vortex Mobile and Chair of IAB Canada's Mobile Comte. "Add
to that the very immediate, targeted and opt-in nature of the advertising, and
you have a golden triangle of opportunity for both accountability and future
growth that is of paramount importance to all clients regardless of economic

    About IAB Canada's Canadian Mobile Advertising Revenue Report

    The totals for 2006 and 2007 actuals as well as 2008 estimated Canadian
Mobile Advertising Revenue was reached after a comprehensive survey of all
major Mobile Carriers and Mobile marketing companies in Canada. Revenue data
was compiled and analyzed by Ernst & Young LLP.
    Download IAB Canada's 2006, 2007-08 Canadian Mobile Advertising Report at

    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,
iabcanada.com, (416) 598-3400 (ext. 26)

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