Canada’s Ad Market Continues Inexorable Shift to Digital Ads

Canada’s Ad Market Continues Inexorable Shift to Digital Ads

By on Dec 24, 2015 in Blog | 0 comments

TV remains a fixture in ad budgets.

In 2015, digital ads made up more than a third of total ad expenditures in Canada, eMarketer estimates, and that percentage will continue to climb in 2016. Digital’s high degree of targeting precision and advanced metrics are attracting a larger share of ad budgets, even as many digital ad formats continue to mature, according to the latest eMarketer report, “Canada Digital Ad Spending Forecast 2016: Mobile, Video and Social Pushing Investment to New Heights.”

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Search advertising is the leading digital ad format in Canada, eMarketer estimates. In 2016, it will account for 53.0% of digital spending. Display will make up most of the rest, responsible for 43.1%.

The shift toward digital ad spending is inexorable, as marketers have clearly indicated they prefer the more concrete metrics associated with digital ad formats. Traditional formats rely on assumptions associated with reach and potential consumer engagement.

For example, TV’s gross rating point (GRP)—the percentage reach of an ad multiplied by frequency—is a proxy for ad effectiveness based on possibility rather than more concrete engagement measures for digital ad formats.

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Many newer ad formats, such as social, digital video and mobile, offer a richer understanding of how consumers behave and use brand information.

Still, TV advertising will remain a major fixture in advertiser plans, even as consumers try new ways of consuming TV content. And print advertising—both in newspapers and magazines—will still command about a fifth of total ad spending in Canada in 2016.

 

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